NASCAR News: Teams win injunction against NASCAR

23XI racing and Front Row Motorsports will be allowed to run as chartered teams in 2025 after a judge issued a preliminary injunction Wednesday in their lawsuit against NASCAR.

The ruling will also allow for the transfer of the Stewart-Haas Racing charters.

NASCAR can appeal the ruling.

From the ruling:

NOW THEREFORE IT IS ORDERED THAT:

1. Plaintiffs’ Motion for a Preliminary Injunction (Doc. No. 51) is GRANTED in part as described above;

2. The Court hereby enters a limited preliminary injunction only for the duration of the 2025 NASCAR Cup season as follows: Defendants and their agents, servants, employees, attorneys, and all persons in active concert or participation with Defendants, most allow Plaintiffs to each enter two race cars in all NASCAR Cup races under the 2025 Charter Agreement terms applicable to all charter teams, with the exception that the “release” language in Section 10.3 of the 2025 Charter Agreement shall not be enforceable to the extent that it would release or bar Plaintiffs’ claims in this action. Further, NASCAR is 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 on the same terms as other charter teams, again with the exception of the application of the release language to Plaintiffs’ claims in this action; and

3. A Case Management schedule will be set by the Court which, in the absence of a voluntary resolution of this dispute among the Parties, provides for a trial on Plaintiffs’ claims to be concluded in advance of the beginning of the 2026 NASCAR race season.

SO ORDERED ADJUDGED AND DECREED.
Signed: December 18, 2024
Kenneth D. Bell United States District Judge

Possible Bad News for NASCAR

While U.S. District Court Judge Kenneth Bell wrote that he “does not reach and expresses no opinion as to Plaintiffs’ likelihood of success on their other Sherman Act claims,” he later added: “The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market.” pic.twitter.com/fX7nTPlm4U

— Adam Stern (@A_S12) December 18, 2024

.@MonsterEnergy told 23XI in November that it was delaying a promotion and reconsidering its entire deal with the team due to the uncertainty around the case, and @LovesTravelStop also expressed concerns to Front Row, per U.S. District Court Judge Kenneth Bell’s filing today. pic.twitter.com/l6PozNi04c

— Adam Stern (@A_S12) December 18, 2024