NASCAR Appeals Court Reversal for 23XI, Front Row Injunction in Charter Dispute

NASCAR Appeals Court Reversal for 23XI, Front Row Injunction in Charter Dispute

By Michael Harrison

February 13, 2025 at 11:18 AM

NASCAR filed a brief to the Fourth Circuit Court of Appeals seeking to reverse the preliminary injunction that allows 23XI Racing and Front Row Motorsports to compete under the charter agreement.

The 68-page brief was submitted on February 12, coinciding with Daytona 500 qualifying day. NASCAR contends that the district court's injunction violates federal antitrust law, misapplies preliminary injunction rules, and disregards crucial evidence.

Black and yellow racing car

Black and yellow racing car

The controversy began when 23XI Racing and Front Row Motorsports were the only teams among 15 that didn't sign the Charter Agreement by the September 6 deadline. After extended deadlines went unanswered, NASCAR withdrew the agreement, leading to an antitrust lawsuit filed by both teams on October 2.

The current injunction requires NASCAR to approve charter sales from Stewart-Haas Racing to both 23XI Racing and Front Row Motorsports, allowing them to field third cars this season. NASCAR argues this forces them to partner with litigation adversaries, undermining the sport's traditional foundation of mutual trust.

NASCAR's brief emphasizes that allowing these teams to obtain charters after declining the original offers impacts race purses, available positions, and season planning. The organization states it would prefer to extend charter benefits to owners committed to enhancing NASCAR's competitiveness rather than those seeking advantageous terms through litigation.

The court will hear oral arguments in May, with the antitrust lawsuit trial scheduled for December 1.

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