23XI Racing and FRM suffer Major blow in their case against NASCAR

23XI Racing and Front Row Motorsports have suffered a setback in their antitrust lawsuit against NASCAR. Judge Kenneth Bell denied the teams’ preliminary injunction motion that sought to recover their charters for their six entries.

One of the biggest blows to 23XI Racing and Front Row Motorsports (FRM) in their case against NASCAR happened when Judge Bell overruled their preliminary injunction motion. This decision could result in NASCAR abandoning six charters among 40. So once the outcome of the trial is there, NASCAR could be obligated to provide a remedy, those charters will be available.

The judge ruled that no irreparable damage would happen to the teams as charters are still open, and the argument that they can be reinstated without any doubt as a chartered team with assured race positions is not solid.

Bob Pockrass, the veteran NASCAR journalist, reported on X:

"Judge Bell has DENIED the 23XI/FRM motion for preliminary injunction with NASCAR saying it will leave six charters (out of 40) available so if that is a remedy as a result of the trial, they are available. Therefore no irreparable harm."

Bob Pockrass

@bobpockrass

Judge Bell has DENIED the 23XI/FRM motion for preliminary injunction with NASCAR saying it will leave six charters (out of 40) available so if that is a remedy as a result of the trial, they are available. Therefore no irreparable harm.

The preliminary injunction that 23XI and FRM sought was to maintain their charter status through the end of the 2025 season as part of their case, which argues that NASCAR had violated antitrust laws.

In the past, FRM and 23XI had provisional injunctions maintaining their chartered status overturned. At the moment, both teams are non-chartered open teams, i.e. they do not have guaranteed entry in all races and make less money.

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23XI co-owner Michael Jordan shares thoughts on settling with NASCAR as court case drags on

Michael Jordan, co-owner of 23XI Racing, had previously expressed the team's willingness to settle their ongoing legal battle with NASCAR outside the courtroom. However, the underlying motivation for the lawsuit is to push for significant reforms in NASCAR to benefit the sport, its fans, and competing teams.

The dispute centers on antitrust claims against NASCAR. 23XI and Front Row Motorsports argue that there are monopolistic practices tied to the charter system, which restricts the ability to acquire, sell, or transfer charters freely, putting competing teams at a disadvantage financially and competitively. He said via Racing News:

“We’ve always been open to a settlement. Always have been. We’ve never taken that off the table.”

Jordan highlighted that one of the contentious issues in the case is a provision in NASCAR's charter agreement that forbids teams from suing NASCAR. A federal judge ruled this provision illegal, allowing 23XI and FRM to maintain their chartered status temporarily and continue racing while the lawsuit proceeds.

NASCAR has countered that because 23XI and FRM refused to sign the new charter agreements, they waived their rights to those charters, and the sport can reassign them to other teams.