NASCAR Moves to Block 23XI Racing and Front Row Motorsports in Antitrust Battle
In a high-stakes legal showdown, NASCAR has taken aggressive action to prevent 23XI Racing—co-owned by Michael Jordan and Denny Hamlin—and Front Row Motorsports from advancing in their ongoing antitrust dispute. On Thursday, NASCAR filed an emergency motion seeking a partial stay of the injunction issued earlier in the week by U.S. District Judge Kenneth D. Bell, while also notifying the court of its intent to appeal the ruling to the Fourth Circuit Court of Appeals.
NASCAR Challenges Judge’s Ruling
NASCAR is requesting that Judge Bell issue a stay pending appeal, arguing that he made critical errors in his interpretation of the law. NASCAR’s primary objection lies in the injunction, which prevents them from denying 23XI Racing and Front Row the same terms as other chartered teams. It also prohibits NASCAR from rejecting the teams’ purchase of two charters from the now-closed Stewart-Haas Racing (SHR) shop, effectively guaranteeing their participation in NASCAR-sanctioned races.
In its motion, NASCAR argued the ruling would cause “irreparable and substantial harm” and provide 23XI Racing and Front Row Motorsports with an unfair advantage over other charter teams. They emphasized that the injunction undermines NASCAR’s contractual rights to review and reject charter transfers and could compromise confidential and competitively sensitive information.
NASCAR’s Core Arguments
NASCAR’s motion, signed by attorney Christopher S. Yates, raises several key points:
- Procedural Missteps: NASCAR claims Judge Bell “procedurally and substantively” erred by approving the charter transfers without allowing NASCAR sufficient opportunity to brief the issue.
- Irreparable Harm: NASCAR maintains the injunction threatens the integrity of its contracts, particularly the arbitration provisions in the SHR charters, and could disrupt NASCAR’s broader charter system.
- Minimal Harm to 23XI Racing and Front Row: NASCAR argues that granting a stay would not significantly harm the teams, as they would still be guaranteed entry of two cars in each 2025 Cup Series race.
Race Against the Clock
Adding urgency to NASCAR’s motion is the looming deadline for the charter acquisitions. 23XI Racing and Front Row are set to finalize their purchase of the SHR charters on Friday. NASCAR expressed concern that if the deal is completed, it would be “difficult, if not impossible, to unwind.” As a result, NASCAR has proposed an expedited timeline, suggesting that 23XI Racing and Front Row respond to their motion by Monday.
Holiday Tensions
The timing of the motion adds an ironic twist, as attorneys now face a flurry of legal filings during the holiday season. NASCAR, which previously objected to working over Thanksgiving, now pushes for swift action as Christmas approaches.
What’s Next?
Attorneys for 23XI Racing and Front Row Motorsports, led by the prominent Jeffrey Kessler, are expected to respond to NASCAR’s motion as early as Friday. With the legal battle intensifying, the dispute over NASCAR’s charter system could have far-reaching implications for the sport’s governance and competitive landscape.
