NASCAR requests reversal of 23XI, Front Row preliminary injunction
Today at 11:15 PM
NASCAR filed a brief on Wednesday in the Fourth Circuit Court of Appeals asking for a reversal of the preliminary injunction granted to 23XI Racing and Front Row Motorsports that allows the teams to compete under the charter agreement.
The brief is 68 pages and was due Wednesday, the same day Cup Series teams qualified for the season-opening Daytona 500. NASCAR is appealing the preliminary injunction that was granted in December.
NASCAR is arguing that "The district court's injunction orders flout federal antitrust law; misapply the established rules governing the use of preliminary injunctions; ignore unrebutted, legally significant evidence; and have sweeping implications for NASCAR's 2025 Cup Series season. Any one of the district court's many errors warrants reversal."
The court is set to hear oral arguments on the appeal in May.
23XI Racing and Front Row Motorsports are competing as charter teams this season, and both teams expanded to a third car. As part of the preliminary injunction decision, NASCAR was ordered to approve the sale of one charter from Stewart-Haas Racing to 23XI Racing and one charter from Stewart-Haas to Front Row Motorsports.
NASCAR responded in the brief by saying, "These injunctions misuse the judicial power to force NASCAR to treat its litigation adversaries as its business partners and confidants, undermining the mutual trust that has fueled NASCAR's growth and success."
23XI Racing and Front Row Motorsports were the only two teams (of 15) that did not sign the Charter Agreement when a September 6 deadline was given. NASCAR offered extended deadlines to the two organizations, but when those went unanswered, NASCAR withdrew the charter agreement. The organizations then filed a joint antitrust lawsuit on October 2.
The trial for the antitrust lawsuit is scheduled for December 1.
"The fact that Plaintiffs can now obtain Charters months after NASCAR withdrew its best-and-final offers – and on different terms that Plaintiffs prefer – is significant for NASCAR and NASCAR competitors," the brief states. "After Plaintiffs declined to sign the Charters, NASCAR recalculated race purses, reassessed the number of available race positions, and communicated these updated details to 2025 Cup Series participants. By securing Charters, Plaintiffs have hit the jackpot – more races and more prize money – even though they deliberately declined NASCAR's now-withdrawn final offers and other teams have already begun strategizing for a 32-Charter 2025 Cup Series season.
"At this point, NASCAR would prefer to extend the perks of the 2025 Charter to owners committed to enhancing NASCAR's competitiveness with other sports for fans, sponsors, and media dollars – rather than owners that undermine NASCAR's brand and seek advantages over other owners in Charter terms."
