Judge denies 23X1 and Front Row charter injunction

A federal judge has denied a motion by 23XI Racing and Front Row Motorsports to be recognized as chartered teams as they proceed in an antitrust lawsuit against NASCAR and its chairman, Jim France.

The decision was issued by Judge Frank Whitney of the U.S. District Court of Western North Carolina. At the time, NASCAR executives were presenting their annual “State of the Sport” address at Phoenix Raceway. NASCAR President Steve Phelps noted they would not discuss charter negotiations in the media, adding that the 32 of 36 teams who accepted the charter extension would gain a significant revenue boost starting in 2025.

The ruling came just before championship weekend began, where 23XI driver Tyler Reddick is competing for the Cup title. Upon hearing of the court decision, NASCAR Chief Operating Officer Steve O’Donnell commented on the timing but declined to discuss the injunction further.

Antitrust lawyer Jeffrey Kessler, representing the teams, announced plans to appeal the decision, emphasizing that while disappointed, they would continue seeking a fairer NASCAR system. He expressed confidence in their case as discovery proceeds.

The dispute stems from NASCAR’s charter agreement, presented in September, which only 13 out of 15 team organizations accepted. Both 23XI and Front Row Motorsports refused, arguing that NASCAR’s approach was monopolistic. NASCAR later rescinded the charter offers to these teams, impacting their revenue share and field guarantees, leaving them as “open” teams without charter protections starting in 2025.

The teams requested the court to maintain the status quo during the lawsuit, noting the new charter terms bar teams from suing NASCAR. They argued that racing without a charter could lead to sponsorship loss, impact their drivers’ contracts, and jeopardize team finances. However, Judge Whitney found these concerns speculative, stating that the plaintiffs had not demonstrated immediate, non-speculative harm.

The ruling allows for the teams to renew their injunction request if conditions change, with a deadline of December 2 to respond.

Both teams are pleased with the court’s decision to expedite discovery and fast track the schedule in their lawsuit against NASCAR, noting that the decision for the injunction has no bearing on their case.