NASCAR Appeals Injunction in Charter Dispute, Seeks Emergency Stay and Team Bond

NASCAR Appeals Injunction in Charter Dispute, Seeks Emergency Stay and Team Bond

By Michael Anderson

December 20, 2024 at 12:09 PM

NASCAR will file an appeal against the preliminary injunction granted to 23XI Racing and Front Row Motorsports, along with two additional motions: an emergency motion for partial stay pending appeal and a request for teams to post an injunction bond.

NASCAR racecars competing on track

NASCAR racecars competing on track

NASCAR's argument for the emergency partial stay centers on three key points:

  • Likely success on appeal
  • Risk of irreparable harm without a stay
  • Public interest concerns regarding forced contractual relationships

The preliminary injunction, granted December 18, allows both teams to race as charter teams while declaring the release clause unenforceable. It also prevents NASCAR from denying charter purchases from Stewart-Haas Racing for each team's third car.

NASCAR claims potential irreparable harm because:

  • Charter sales would force a 7-14 year contractual relationship
  • Teams haven't met required conditions for charter assignment
  • Transfers would be difficult or impossible to reverse
  • Confidential information would need to be disclosed

The requested partial stay would:

  • Allow teams to maintain driver and sponsor contracts
  • Permit them to enter two cars in 2024 races
  • Limit charter agreement benefits for unsigned teams

NASCAR emphasizes urgency as the teams indicated charter purchases must close by December 20. Additionally, NASCAR seeks an injunction bond (amount sealed) to ensure potential prize money reimbursement if they win the case.

The governing body argues the court misunderstood the release provision, stating it doesn't operate prospectively, and retrospective releases of antitrust claims don't constitute Sherman Act violations.

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