Court Denies NASCAR's Motion to Stay Preliminary Injunction in Charter Dispute

Court Denies NASCAR's Motion to Stay Preliminary Injunction in Charter Dispute

By Michael Harrison

December 24, 2024 at 02:15 AM

NASCAR has been denied its request for a partial stay of the preliminary injunction issued to 23XI Racing and Front Row Motorsports.

Ford NASCAR racecar on track

Ford NASCAR racecar on track

U.S. District Judge Kenneth D. Bell modified the preliminary injunction, ordering NASCAR to immediately approve the charter sale from Stewart-Haas Racing to Front Row Motorsports. This ruling only applies to Front Row Motorsports, as 23XI Racing's transfer was not in the original filing and will require a separate request.

The judge rejected NASCAR's emergency motion for a partial stay of appeal, where they argued they would be harmed by the injunction. Judge Bell stated that NASCAR failed to demonstrate they would succeed on merits, and their arguments about irreparable harm had already been addressed.

Key points in the ruling:

  • The Court has broad discretion to create an injunction based on unique circumstances
  • The injunction is specific to the 2025 season, not creating long-term obligations
  • Front Row submitted transfer papers on Nov. 14, 2024, after receiving approval from NASCAR president Steve Phelps
  • NASCAR later declined the transfer on Dec. 5, only after the lawsuit was filed

The Court found that NASCAR's refusal to approve the transfer was based on Front Row's unwillingness to drop the lawsuit and release their antitrust claims. Judge Bell determined this would cause Front Row immediate irreparable harm by losing a rare opportunity to acquire a charter racing spot.

A trial on the antitrust lawsuit is scheduled for December 2025, unless the parties reach a resolution before then.

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