23X1 and FRM win injunction: NASCAR Appeals

NASCAR has taken swift legal action by filing an emergency motion for a “partial stay” of proceedings against 23XI Racing and Front Row Motorsports (FRM), following a significant courtroom victory for both teams.

Earlier this week, 23XI Racing, co-owned by Denny Hamlin and Michael Jordan, and FRM were granted a preliminary injunction that allows them to compete as chartered teams in the 2025 season. Hamlin celebrated the decision on social media, posting “YESSSSSSS!!!!!!!” followed by a gif of Will Smith from The Pursuit of Happyness.

The injunction permits 23XI and FRM to acquire a charter from Stewart-Haas Racing, which ceased operations at the conclusion of the 2024 season. However, NASCAR has appealed the ruling, seeking to delay its enforcement. According to Bob Pockrass, NASCAR reporter for FOX Sports, the organization requested an emergency motion to partially stay the injunction while the appeal is pending. The specifics of what NASCAR wants delayed were not fully disclosed, as parts of the motion were sealed.

Pockrass explained that NASCAR’s request centers on delaying the transfer of Stewart-Haas Racing charters and other associated charter benefits. However, NASCAR proposed guaranteeing entry for two cars each from 23XI and FRM in every 2025 Cup Series race, even during the appeal process. The governing body cited concerns of “irreparable harm” if the injunction remains fully enforced.

In its filing, NASCAR argued that the injunction compels it into a prolonged contractual relationship with the plaintiffs under conditions it claims the teams have not yet met. “The Court’s decision forcing NASCAR to approve Plaintiffs’ SHC Charter transfers is not a ‘limited’ injunction for the 2025 Cup Series season,” the filing stated, according to Racing News. “Instead, it will effectively force NASCAR into a seven-to-fourteen-year contractual relationship… even though Plaintiffs have not met multiple required conditions.” NASCAR also raised concerns about the difficulty of reversing these court-ordered transfers if they are finalized.

With the teams reportedly needing to close the charter deal by December 20, NASCAR has asked the court for a ruling on the stay request by Friday. Additionally, NASCAR is seeking another stipulation: for 23XI and FRM to post a bond, (amount redacted), to cover potential payouts should NASCAR prevail in the case. This bond would address any financial impact from the enforcement of the injunction.

The legal clash highlights a contentious chapter in the NASCAR charter system, with significant implications for team ownership and operations heading into the 2025 season.

NASCAR’s fight to delay the inevitable might just prove the wheels are coming off its own argument.