NASCAR Appeals Court Decision on 23XI and Front Row Charters Injunction
NASCAR's legal and economic battle with racing teams has intensified as it seeks to reverse the preliminary injunction granted to 23XI Racing and Front Row Motorsports. The injunction currently allows these teams to compete under the charter agreement during the 2025 season.
Black and yellow racing car
In a 68-page brief filed with the Fourth Circuit Court of Appeals, NASCAR argues that the district court's injunction violates federal antitrust law and misapplies preliminary injunction rules. The organization contends that the ruling has significant implications for the 2025 Cup Series season.
The dispute stems from 23XI Racing and Front Row Motorsports being the only two teams that didn't sign the Charter Agreement by the September 6 deadline. Despite extended deadlines, their non-compliance led NASCAR to withdraw the charter agreement, prompting an antitrust lawsuit from the teams on October 2.
Key developments include:
- NASCAR was ordered to approve charter sales from Stewart-Haas Racing to both teams
- Both teams are now operating with three cars each
- Oral arguments for the appeal are scheduled for May
- The antitrust lawsuit trial is set for December 1
NASCAR argues that the injunction forces them to partner with litigation adversaries, undermining the sport's growth and success. They claim the teams have unfairly secured advantages in terms of races and prize money, despite declining the original offers when other teams had already planned for a 32-Charter season.
The organization stated its preference to extend charter benefits to owners committed to enhancing NASCAR's competitiveness rather than those they believe undermine the brand and seek preferential treatment.