Court rules in favor of teams on multiple items in NASCAR lawsuit

In recent years, NASCAR and teams were in negotiations regarding a new charter agreement. 13 of 15 teams elected to sign after a final deadline was given.

23XI Racing and Front Row Motorsports elected to skip the deadline. Instead, they opened an anti-trust lawsuit, seeking better charter terms for teams.

In the charter agreement, a line noted that teams who signed would be unable to sue NASCAR.

NASCAR was planning to race with 32 charter teams instead of 36 in 2025. They also asked the courts to dismiss the case.

Courts grant preliminary injunction

In the midst of the lawsuit, 23XI and Front Row Motorsports filed a preliminary injunction. They were asking the courts to grant them the charter agreements, as if they did have sign while the lawsuit is ongoing.

The initial preliminary injunction was declined. The teams filed an appeal of that ruling. NASCAR requested that the lawsuit be dismissed.

Since then, the judge in the suit has been swapped.

Charter teams are guaranteed a starting spot in every event. Additionally, they earn significantly more than Open teams.

Also, per Tyler Reddick’s contract, it’s required the team supplies him with a charter team.

Today, the judge ruled that they will allow both 23XI Racing and Front Row Motorsports to sign the existing charter agreements. That will allow them to race as charter teams as the lawsuit continues.

This ruling allows both 23XI and Front Row to continue business as usual while they fight an antitrust lawsuit against NASCAR.

23XI Racing and Front Row Motorsports will be allowed to use additional purchased charters

There’s a separate piece to this puzzle…

23XI Racing and Front Row Motorsports each purchased a charter from Stewart-Haas Racing. They would each expand from two cars to three cars. They have asked the court for the transfer of that charter to go through.

NASCAR was attempting to reject the sales to both teams.

Per the court, “Preliminarily enjoined from refusing to approve Plaintiffs’ purchases of two Stewart-Haas Racing, LLC charters, which Plaintiffs will be entitled to use to race in all 2025 NASCAR Cup races.”

Jeffrey Kessler comments on the ruling

Kessler is the lawyer for both teams.

“We welcome today’s decision by Judge Bell granting a preliminary injunction in our favor,” Jeffrey Kessler said in a statement.

“The court’s ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in next year’s Cup Series. The decision also requires NASCAR to approve both teams’ purchases of a third charter from Stewart-Haas Racing and allow these cars to also race as chartered teams in the 2025 season.”

“We are confident in the strength of our case and will continue to fight so that racing can thrive and become a more competitive and fair sport in ways that benefit teams, drivers, sponsors and most importantly, our fans.”

NASCAR has the option to appeal the ruling.