23XI and FRM DENIED Preliminary Injunction Request in NASCAR Lawsuit

What’s Happening?

In a major blow to 23XI Racing and Front Row Motorsports, a U.S. District Court Judge has ruled in favor of NASCAR. This ruling temporarily squashes the hopes of 23XI and FRM in their ongoing lawsuit with NASCAR.

• During NASCAR’s State of the Sport press conference Friday in Phoenix, Bob Pockrass of Fox Sports reported that the judge denied the two teams their injunction. Despite this loss, two teams can still file a renewed motion “should circumstances change.”
• The two teams initially filed for this injunction on Oct. 9. If granted, it would have allowed the two teams to compete as chartered teams throughout their lawsuit with NASCAR. Charter ownership provides teams with crucial financial support throughout a race season.
• FRM and 23XI Racing filed their lawsuit against NASCAR on Oct. 2, which followed the two teams’ holding out on signing the final draft of the 2025 NASCAR Charter Agreement. This agreement sets the terms for charter ownership in NASCAR.
• The reason the teams did not sign this agreement but filed for an injunction is because the agreement releases NASCAR of antitrust claims. The injunction would have waived that release so the teams could continue their antitrust suit while racing their chartered entries.
• The hearing for this injunction was on Monday; during that hearing, the team’s lawyer, Jeffery Kessler, claimed that drivers like Tyler Reddick and certain sponsors could leave if the teams do not have charters. However, the judge did not believe this argument and other claims were sufficient proof that the team would suffer irreparable harm from racing without their charters.
• Concurring reports from Monday confirmed that 23XI plans to appeal this decision. However, if the team’s race as open cars in 2025, they notably claimed on Oct. 30 that the open car agreement also possesses a release in it as well. This claim raises questions about how they can race while suing NASCAR.
• As the final question of today’s press conference, Jordan Bianchi of the Athletic asked NASCAR President Steve Phelps about the ruling. Phelps responded, “I have no comment on that, Jordan.”

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