NASCAR has issued another filing in the antitrust lawsuit which indicated that it will not approve the transfer of charters from Stewart-Haas Racing to 23XI Racing and Front Row Motorsports.
SHR, a team co-founded by Tony Stewart and Gene Haas in 2009, has been a formidable presence in NASCAR, securing Cup Series titles in 2011 and 2014. Despite this success, SHR announced it would close operations at the end of the 2024 season, a decision attributed to the increasingly demanding nature and significant resources required in motorsports. A spokesperson for SHR stated earlier in the year:
"We have made the difficult decision to close Stewart-Haas Racing at the conclusion of the 2024 season. It is a decision that did not come easily, nor was it made quickly.
"Racing is a labour-intensive, humbling sport. It requires unwavering commitment and vast resources, with a 365-day mindset to be better than everyone else. It's part of what makes success so rewarding.
"But the commitment needed to extract maximum performance while providing sustainability is incredibly demanding, and we've reached a point in our respective personal and business lives where it's time to pass the torch.
"We're proud of all the wins and championships we've earned since joining together in 2009, but even more special is the culture we built and the friendships we forged as we committed to a common cause – winning races and collecting trophies.
"That is the same commitment we made to our personnel, our partners and our fans coming into this year, and that commitment will remain through the season finale at Phoenix.
"We have tremendous respect and appreciation for all of our employees, and we will work diligently to assist them during this transition to find new opportunities beyond the 2024 race season."
The implications of SHR's closure have reverberated through the charter market, particularly affecting teams like 23XI Racing and FRM who had shown interest in acquiring SHR's valuable charters.
Both 23XI Racing, which is co-owned by NBA legend Michael Jordan and NASCAR driver Denny Hamlin, and FRM, owned by Bob Jenkins, had entered agreements to purchase these charters.
However, the path forward remains uncertain due to ongoing legal challenges and NASCAR's requirements. Fox Sports NASCAR reporter Bob Pockrass has shared an update to social media, posting:
"NASCAR filing today indicates it won't consider charter transfer of SHR charters to 23XI/FRM as they 'purchased these Charters fully aware that they contained a release provision, which needed to be accepted for any requested transfer to be considered.'"
NASCAR filing today indicates it won't consider charter transfer of SHR charters to 23XI/FRM as they "purchased these Charters fully aware that they contained a release provision, which needed to be accepted for any requested transfer to be considered." https://t.co/fLEn0RToIm
— Bob Pockrass (@bobpockrass) December 3, 2024The plaintiffs argue that the charter system limits competition and threatens their financial viability. They claim it unfairly binds teams to the series, its tracks, and its suppliers while placing an undue financial burden.
The recent denial of a preliminary injunction—filed by the plaintiffs to allow competition as chartered teams during the lawsuit—compounds their challenges.
The court ruled that damages could be compensated financially, allowing them to compete as open teams. As NASCAR shifts towards a smaller field size, planning to run the 2025 season with 32 chartered teams instead of 36, the competition could change substantially.
Both 23XI Racing and Front Row Motorsports will continue their antitrust lawsuit against NASCAR, exploring new legal avenues or motions to address their grievances.
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