Three More Takeaways From NASCAR’s Lawsuit Injunction Response

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What’s Happening?

Wednesday evening, NASCAR responded to 23XI Racing and Front Row Motorsports’ request for a preliminary injunction. Like most documents in this suit, beneath the surface-level information lay answers to questions about the future of NASCAR and 23XI. Here are three more things we learned in NASCAR’s most recent court filing.

  • On Oct. 2, 23XI Racing and Front Row Motorsports sued NASCAR on antitrust grounds. This followed them being the only teams of 15 chartered NASCAR Cup Series teams not to sign the 2025 NASCAR Charter Agreement.
  • In that same lawsuit, 23XI and FRM laid out a plan to file a request for a preliminary injunction, which they did on Oct. 9. If granted, this injunction will allow the two teams to race under the 2025 Charter Agreement through the duration of this lawsuit.

We Still Don’t Know the Future of the Final Two SHR Charters

When FRM and 23XI first sued NASCAR on Oct. 2, the suit contained breaking news. 23XI Racing had agreed to purchase the final available charter from Stewart-Haas Racing. Notably, this was prior to 23XI and FRM holding out on signing the 2025 NASCAR Charter Agreement. Furthermore, the initial suit claimed that the third charters for both 23XI and FRM are “in escrow and requires approval from NASCAR.”

At first glance, it could be misunderstood that the teams were awaiting NASCAR to approve the transition of the charter and that NASCAR was holding out. However, on Wednesday, when NASCAR filed its response, NASCAR clarified that neither had requested this transfer.

Per page 5 of NASCAR’s Oct. 23 response, “To date, Plaintiffs have not submitted a transfer request to NASCAR for these Charters.”

So, rather than NASCAR being the holdup, perhaps the two teams are more focused on the here and now than these two charters. This further draws questions about the rumored drivers of those two cars, Riley Herbst and Zane Smith. While neither are confirmed for those rides, multiple sources suggest they are the leading candidates.

NASCAR Plans on Having Eight Open Slots In 2025

On Oct. 16, NASCAR filed a response to 23XI and FRM’s expedited discovery request. This response held a shocking line on page 2, claiming that NASCAR was planning on only having 32 chartered teams in 2025.

“The deadline for Plaintiffs to sign 2025 Charter Agreements expired weeks ago, and NASCAR has taken steps, consistent with its contractual obligations to other Charter Teams, to plan for a season with only 32 Charters.”

The current NASCAR field has 36 charters, with 23XI and FRM’s four current charters missing next year. This scenario would occur if the two do not get their injunction to race as charter teams in 2025. However, this left one major question in the minds of fans. Would NASCAR shrink down the maximum field size from 40 with four open spots down to 36 with four open spots?

But on page five of their response on Wednesday, NASCAR confirmed that they plan on having a season with “32 Charters and eight open positions.”

NASCAR Battles Antitrust Claims

One significant portion of NASCAR’s response concerns the lawsuit as a whole. While the initial suit is separate from the request for a preliminary injunction, NASCAR battled those claims in this lawsuit in their response.

First, NASCAR claims that the team’s antitrust claims are past the statute of limitations. As stated on page 10:

“Additionally, Plaintiffs’ allegations—concerning contractual terms present in the 2016 Charter (such as exclusivity), NASCAR’s 2018 acquisition of ISC, its 2019 acquisition of ARCA, and the 2019 adoption of Next Gen car requirements—are all barred by the four-year statute of limitations applicable to antitrust claims, 15 U.S.C. § 15(b), and laches.”

This claim could have major implications, as these four things listed in this quote were major aspects of this lawsuit. Furthermore, NASCAR directly addressed the team’s scrutiny about purchasing ARCA by stating on page 12 that the series “was never a potential competitor to NASCAR.” This sentiment is no shock to longtime fans who know the distinct differences in quality between the two.

NASCAR laid out their defense just as clearly as the two teams laid out their claims. The hearing for this injunction is scheduled for Nov. 4. If 23XI and FRM get their injunction, it will give them a major leg up as this suit continues.

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Kauy Ostlien

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