23XI Racing and Front Row Motorsports have secured a preliminary injunction allowing them to participate as chartered teams in the upcoming 2025 season. This legal win also includes preliminary approval for charter transfers from Stewart-Haas Racing, although such approval remains contingent upon the ongoing legal proceedings.
The backdrop of this dispute is NASCAR's charter system introduced back in 2016, designed to guarantee teams' participation in every Cup Series race through 36 charters. With revenue-sharing elements incorporated, this system was purposed to stabilize teams' financial standing.
However, teams argue that the charters' looming expiration has become a bargaining chip in contested negotiations.
FOX Sports reporter Bob Pockrass has shared the update to social media, posting:
"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."
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, 2024He added:
"Judge ruled today that 23XI and Front Row can sign the charter agreements and pursue the lawsuit (and NASCAR must let them sign the charters). They also can purchase a charter from SHR and NASCAR must approve the transfer to them.
"NASCAR can appeal the ruling today to the U.S. Court of Appeals. Whether it will is not immediately clear."
Expanding on the details of the injunction, Pockrass continued:
"Part of granting a preliminary injunction is that the teams had to show a likelihood of success. The judge ruled that they have likelihood of success that the release clause (that indicates they can't sue) in the charter agreement is unlawful.
"The judge does state in order: 'The Court emphasizes that it does not reach and expresses no opinion as to Plaintiffs' likelihood of success on their other Sherman Act claims, including, but not limited to, their allegations of anticompetitive restrictions and conduct.'"
The negotiation friction extended into NASCAR's proposal to reduce the number of chartered teams from 36 to 32 by 2025. Their advocacy for permanent charters and revised revenue terms — requesting 45% of traditional media revenue and 33% of new generated revenue — demonstrates their pursuit of greater equity and influence in the NASCAR governance structure. The legal push, orchestrated by renowned attorney Jeffrey Kessler, seeks to challenge what is perceived as monopolistic practices by NASCAR, under Jim France's helm.
This comes after a new judge was introduced to the case. Pockrass previously explained:
"No reason given but according to the court docket, the 23XI/Front Row case vs NASCAR has been reassigned to judge Kenneth D. Bell. Judge Frank D. Whitney, who issued the initial preliminary injunction ruling, is no longer assigned to the case.
"No idea why the change in judges. Judge Whitney had said he would recuse himself b/c NASCAR lead local attorney worked for him as a clerk for more than a decade (the attorney also offered to leave the case) but 23XI/FRM said not necessary and they were good with Judge Whitney.
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