Teams win preliminary injunction in lawsuit against NASCAR UPDATES
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UPDATE 12-22-2024: A federal judge set a Jan. 8 hearing to hear NASCAR‘s motion to throw out an antitrust lawsuit filed against the stock car series by Michael Jordan-owned 23XI Racing and Front Row Motorsports
— Associated Press —
UPDATE 12-20-2024: NASCAR will file an appeal of the preliminary injunction that was granted to 23XI Racing and Front Row Motorsports.
But in addition to the appeal, NASCAR has filed additional motions pertaining to the injunction. The first is asking for an emergency motion for partial stay of injunction pending the appeal. The second is for the teams to post an injunction bond.
In asking for the stay pending appeal, NASCAR claimed they "are likely to succeed on appeal" and "suffer irreparable harm without a stay of the Court‘s decision," while the teams "would not face substantial harm because the continued enforcement of a partial stay would address each of Plaintiffs‘ irreparable harm allegations," and lastly, "the public interest supports a partial stay, as this Court‘s preliminary injunction forces NASCAR into unwanted contractual relationship with Plaintiffs."
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In addressing the belief that they are likely to succeed on appeal, NASCAR states that it was never given a chance to offer the issues around those purchases and the teams never included the issues in their complaint. NASCAR also states that letting the teams field their two cars without the release clause contradicts Fourth Circuit precedent.
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The claim of how NASCAR will suffer irreparable harm is connected to having to approve the charter sales between the teams and Stewart-Haas Racing. By doing this, it will not be limited to only the 2025 season, as the preliminary injunction is. If the two sides do not come to a resolution on the lawsuit, the trial will be held before the 2026 season.
Instead, the charter sales "will effectively force NASCAR into a seven- to 14-year contractual relationship" with 23XI Racing and Front Row Motorsports. And the teams "have not met multiple required conditions for these Charters‘ assignment." NASCAR also argues it would be difficult, if not impossible, to undo the transfers and "entering a stay before these transfers occur is crucial to prevent the consequences of an erroneous injunction from becoming irreversible."
See much ore at Racer.
UPDATE 12-19-2024: NASCAR will appeal the ruling granting the preliminary injunction to 23XI Racing and Front Row Motorsports.
NASCAR is asking for the enforcement of preliminary injunction be delayed pending appeal except that NASCAR will guarantee entry of two cars each from Front Row and 23XI in each 2025 Cup race. They ask to delay SHR charter transfers and other benefits of charter membership. https://t.co/OM2ckCRrH2
— Bob Pockrass (@bobpockrass) December 19, 2024
ORIGINAL POST 12-18-2024: 23XI racing and Front Row Motorsports will be allowed to run as chartered teams in 2025 after a judge issued a preliminary injunction Wednesday in their lawsuit against NASCAR.
The ruling will also allow for the transfer of the Stewart-Haas Racing charters.
NASCAR can appeal the ruling.
BREAKING: 23XI and Front Row Motorsports have obtained the preliminary injunction to race as chartered teams in 2025 as well as for approval of the SHR transfers.
— Bob Pockrass (@bobpockrass) December 18, 2024
From the ruling:
NOW THEREFORE IT IS ORDERED THAT:
1. Plaintiffs’ Motion for a Preliminary Injunction (Doc. No. 51) is GRANTED in part as described above;
2. The Court hereby enters a limited preliminary injunction only for the duration of the 2025 NASCAR Cup season as follows: Defendants and their agents, servants, employees, attorneys, and all persons in active concert or participation with Defendants, most allow Plaintiffs to each enter two race cars in all NASCAR Cup races under the 2025 Charter Agreement terms applicable to all charter teams, with the exception that the “release” language in Section 10.3 of the 2025 Charter Agreement shall not be enforceable to the extent that it would release or bar Plaintiffs’ claims in this action. Further, NASCAR is preliminarily enjoined from refusing to approve Plaintiffs’ purchases of two Stewart-Haas Racing, LLC charters, which Plaintiffs will be entitled to use to race in all 2025 NASCAR Cup races on the same terms as other charter teams, again with the exception of the application of the release language to Plaintiffs’ claims in this action; and
3. A Case Management schedule will be set by the Court which, in the absence of a voluntary resolution of this dispute among the Parties, provides for a trial on Plaintiffs’ claims to be concluded in advance of the beginning of the 2026 NASCAR race season.
SO ORDERED ADJUDGED AND DECREED.
Signed: December 18, 2024
Kenneth D. Bell United States District Judge
U.S. District Court Judge Kenneth Bell revealed in his filing today granting 23XI and Front Row a preliminary injunction for 2025 that "driver Bubba Wallace informed 23XI that he needs to know how it intends to compete 'immediately' so that he can explore seats with other
teams." pic.twitter.com/NT0oxAXEX6— Adam Stern (@A_S12) December 18, 2024
While U.S. District Court Judge Kenneth Bell wrote that he "does not reach and expresses no opinion as to Plaintiffs‘ likelihood of success on their other Sherman Act claims," he later added: "The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market." pic.twitter.com/fX7nTPlm4U
— Adam Stern (@A_S12) December 18, 2024
Statement from 23XI and Front Row Motorsports ownership. pic.twitter.com/GuSyIKmYrm
— Front Row Motorsports (@Team_FRM) December 18, 2024
