NASCAR News: Teams win injunction against NASCAR (2nd Update)
NASCAR is appealing both the decision to allow 23XI to buy the SHR Charter and the order from judge Kenneth D. Bell to recognize both 23XI and Front Row as if they held charters during the 2025 Cup Series, and will file that motion to the Fourth District court in Richmond, Virginia after Christmas.
In the name of expedience and convenience, NASCAR has agreed to go ahead and allow the 23XI charter acquisition from SHR to proceed pending the appeal, recognizing that Bell would most likely have granted it under the same reasoning it did the Front Row Motorsports order.
This just allows NASCAR to not have to wait on 23XI to file the motion and then for Judge Bell to decide on it, thus allowing the Sanctioning Body to now go to the Fourth District of Appeals with haste.
— Sportsnaut —
Now with another small win in the lawsuit battle, Michael Jordan and Co. look confident heading into 2025. On December 26th, the district court released the statements which had 23XI fans going wild. Fox journalist Bob Pockrass posted on X: “District court judge has formally OK’d agreement. NASCAR has agreed to an injunction for SHR charter transfer to 23XI”. This decision comes after months of legal tug-of-war between the two entities.
This implies that 23XI will now finally be able to take over the hung-up Stewart-Haas Racing charter with Michael Jordan and Denny Hamlin seeking to expand its Cup Series presence. The court’s ruling, while not a final victory, significantly strengthens 23XI’s grip on the lawsuit and has major implications for the future of the team, particularly for Ford’s prodigy driver Riley Herbst.
On November 20th, 2024, 23XI Racing announced the signing of Riley Herbst as their third Cup driver for 2025. This was still at a time when their third charter was not confirmed but it seems like the gamble has paid off. Herbst will drive the No. 35 Monster Energy Toyota Camry XSE when the 2025 Cup Series season begins.
December 24, 2024
Another loss for NASCAR – Judge Kenneth D. Bell ruled on Monday in favor of there not being a delay of the preliminary injunction order. The transfer of one of the Stewart-Haas Racing charters to Front Row Motorsports must go through. 23XI Racing will need to request to be approved for one of the SHR charters separately because it wasn’t included in the original filing, but this isn’t likely to be an issue based on recent rulings.
In Monday’s ruling, Judge Bell also criticized the ‘Catch-22’ of NASCAR’s Release clause in the 2025 Charter Agreement (which prohibits teams from bringing antitrust claims against the sport after signing). That part of the ruling read as follows: “Plaintiffs (23XI/FRM), or any other team that wanted to challenge NASCAR’s conduct as an antitrust violation is (according to the Defendants) out in a classic ‘Catch-22′ — the team must accept the 2025 Charter Agreement, including the Release that bars Plaintiffs’ antitrust claims, but if it doesn’t sign the Charter Agreement then it can’t bring those same antitrust claims because it doesn’t hold a charter.”
The court went on to say that the Release is “likely to be found unlawful” and also pointed out that the uncertain approval of the SHR charter transfer to FRM was “based on Front Row’s unwillingness to drop this lawsuit and release their antitrust claims.”
A Jan. 8 hearing date has been set to hear NASCAR’s motion to throw out an antitrust lawsuit filed against the stock car series by Michael Jordan-owned 23XI Racing and Front Row Motorsports
December 18, 2024
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