NASCAR denied in request for partial stay of preliminary injunction

Yesterday at 03:04 PM

NASCAR has had its motion for a partial stay of the preliminary injunction issued to 23XI Racing and Front Row Motorsports denied.

In denying the motion, U.S. District Judge Kenneth D. Bell modified the preliminary injunction to order NASCAR to immediately approve the charter sale from Stewart-Haas Racing to Front Row Motorsports. It only applies for Front Row Motorsports, however.

The same is not in play for 23XI Racing as their transfer was not in the original filing. The team will need to make its own request as it pertains to the sale of a charter that will be considered on its own by the Court.

Judge Bell granted the preliminary injunction Dec. 18. NASCAR then filed for an emergency motion for a partial stay of appeal. In its motion, NASCAR argued it would be harmed by the injunction while the teams would not.

However, in his Monday ruling, Judge Bell wrote that NASCAR has not made a showing they will succeed on the merits. Additionally, he felt that all arguments about irreparable harm had already been made to the Court.

To the contrary of NASCAR claiming the injunction was not consistent with Fourth Circuit precedent, Judge Bell wrote the Court has "broad discretion to create an injunction based on the unique circumstances of this case." Furthermore, by making the injunction specific to the 2025 season, NASCAR is not entering into a long-term agreement with 23XI Racing and Front Row Motorsports.

If NASCAR were to succeed in the case, "the Court has the equitable power to require the sale of or take other action with respect to the SHR transferred charters as part of the final relief entered after trial."

Front Row Motorsports submitted the paper for the transfer of the Stewart-Haas charter on Nov. 14, 2024. It was after being told by NASCAR president Steve Phelps on September 11 the sale was approved and the team needed to submit the documents. The same sentiment as reiterated by Phelps on September 12.

NASCAR informed Front Row on December 5 the transfer would not be approved. The Court noted the only event between those events was the lawsuit being filed (Oct. 2) and NASCAR telling Front Row that "it would have to drop its lawsuit and release its antitrust rights before NASCAR would approve the transfer."

Furthermore, "the Court reaffirms its factual finding that the record shows that the reasons Defendants stated they would not approve the transfer to Front Row were all based on Front Row's unwillingness to drop this lawsuit and release their antitrust claims. The Release is likely to be found unlawful as described above. Further, declining to enjoin NASCAR from refusing to approve Front Row's purchase of the SHR charter will cause Front Row immediate irreparable harm in the loss of a rare opportunity to acquire a charter racing spot."

On the other hand, the Court found NASCAR would not suffer irreparable harm if they race under the 2025 charter agreement. They are the same terms NASCAR entered into with other teams and that NASCAR told the Court were fair and beneficial for all.

A trial on the antitrust lawsuit – if not resolved between the parties in the meantime – will be held in December 2025.