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23XI Racing and Front Row Motorsports Win Injunction to Race as Chartered Teams in 2025, NASCAR Must Approve SHR Charters

Dec 18, 2024, 06:51 PM

23XI Racing and Front Row Motorsports have been granted a preliminary injunction by U.S. District Court Judge Kenneth D. Bell, allowing them to race as chartered teams in the NASCAR Cup Series during the 2025 season. This ruling also mandates NASCAR to approve the transfer of charters from Stewart-Haas Racing to these teams. The injunction stems from an ongoing antitrust lawsuit filed by the teams against NASCAR and its CEO Jim France, alleging monopolistic practices. The judge found that the teams demonstrated a likelihood of success in their claim that a clause in the charter agreement, which requires teams to waive their right to sue NASCAR on antitrust grounds, is unlawful. The decision was influenced by the potential irreparable harm to the teams, including the risk of losing key drivers like Tyler Reddick, who could have become a free agent without a charter. NASCAR has the option to appeal the ruling. 23XI/FRM attorney Jeffrey Kessler argued the case, and the judge noted NASCAR's monopoly power in the relevant market.