U.S. District Court Judge Kenneth Bell has ruled in favor of 23XI Racing and Front Row Motorsports, granting them a preliminary injunction. This ruling permits the teams to compete as chartered teams in the 2025 NASCAR Cup Series.
Judge Bell based his decision on the "present prospect" of irreparable harm, citing the potential loss of key drivers if the situation remained unrectified. Bell stated:
"The 'present prospect' of the loss of star drivers constitutes irreparable harm that 'cannot fully be rectified by the final judgment after trial.
"These are changed circumstances that the court finds have moved Plaintiffs' speculative to present and immediate."
The court documents state further:
"The Court hearby 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, must 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 Plaintiff' claims in this action."
This decision marks a substantial development in the antitrust lawsuit filed by 23XI Racing and FRM against NASCAR. The lawsuit, initiated on October 2, 2024, alleges that NASCAR's charter agreements violate antitrust laws by hindering competition. The preliminary injunction specifically requires NASCAR to allow 23XI Racing and FRM to enter and race two cars each under the terms of the 2025 Charter Agreement. Furthermore, the ruling necessitates NASCAR's approval of the teams' purchasing an additional charter from Stewart-Haas Racing, facilitating their expansion to three full-time cars each from 2025.
The ruling is a significant victory for the two teams, both of which have become prominent figures in NASCAR. Co-owned by NBA legend Michael Jordan and NASCAR driver Denny Hamlin, 23XI Racing fields successful drivers like Bubba Wallace and Tyler Reddick. Front Row Motorsports, founded by Bob Jenkins, has been a competitive entity in the series since 2004.
Attorney Jeffrey Kessler, representing both teams, was satisfied with the court's decision. He stated:
"We welcome today's decision by Judge Bell granting a preliminary injunction in our favor. The court's ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in next year's Cup Series. The decision also requires NASCAR to approve both teams' purchases of a third charter from Stewart-Haas Racing and allow these cars to also race as chartered teams in the 2025 season."
While the court's decision is a current victory for the teams, NASCAR has not indicated whether it will appeal the ruling. Regardless of a potential appeal, the preliminary injunction solely applies to the 2025 NASCAR Cup Series. The core antitrust claims of the lawsuit are yet to be resolved and aim for a conclusion before the 2026 racing season.
The teams had refused to sign a new charter agreement on September 6, leading to the lawsuit. The case initially faced setbacks when an earlier request for a preliminary injunction was denied by another judge. However, the introduction of new evidence, demonstrating the potential harm caused by losing drivers and sponsors, played a critical role in Judge Bell's decision.
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