U.S. Court of Appeals Rules in Favor of NASCAR, Revokes Injunction Against 23XI Racing and Front Row Motorsports
In a significant ruling on May 9, the U.S. Court of Appeals in Richmond, Virginia, revoked a preliminary injunction previously granted to 23XI Racing and Front Row Motorsports (FRM). This injunction had allowed the teams to compete with charters without adhering to the release clause stipulated in NASCAR’s 2025 Charter Agreement, which the teams argued could constitute antitrust violations.
The court’s decision, effective in two weeks unless the teams request a rehearing, mandates that both 23XI and FRM must race as open teams for the remainder of the season. Team attorney Jeffrey Kessler emphasized during the hearing that racing without charters would impose severe economic repercussions, potentially jeopardizing sponsor relationships and impacting on-track performance.
Historically, only one Cup race this season, the Daytona 500, has required sending cars home due to field limitations. This indicates that fields have generally been full, complicating the situation for teams forced to qualify each week.
The ruling drew attention due to the judges’ scrutiny of Kessler’s arguments. They questioned the validity of the teams receiving the benefits of the 2025 Charter Agreement while simultaneously pursuing legal action regarding its terms. Citing a lack of precedent to support the antitrust claims, the court stated that the teams did not demonstrate a "clear showing that they were likely to succeed" in their case.
As a consequence of this ruling, 23XI and FRM, which each own three charters, face a critical juncture. They had previously leveraged the initial injunction to acquire an additional charter from the now-defunct Stewart-Haas Racing, further complicating their strategic standing for the upcoming season. The trial date for their underlying lawsuit is set for December 2023.
This ruling not only reshapes the operational landscape for these teams but may also reverberate throughout the NASCAR ecosystem as other teams watch closely.
