January 10, 2025

NASCAR Loses Motion to Dismiss

23X1 and FRM win injunction (2)

NASCAR faced another setback in court today as Judge Kenneth D. Bell, overseeing the legal dispute with 23XI Racing and Front Row Motorsports, denied the series’ motion to dismiss the case.

In his decision, Judge Bell explained that the teams had “sufficiently alleged one or more plausible antitrust claims,” allowing the lawsuit to proceed. He elaborated: “What is the actual evidence and how does it inform a correct legal conclusion? These questions cannot be determined on motions to dismiss in this action, where Plaintiffs have sufficiently alleged one or more plausible antitrust claims against Defendants within the applicable period of limitations. Instead, the answers must be found when the parties have a full opportunity to pursue discovery of the relevant facts and then at trial, where the jury will be able to weigh the evidence and assess the credibility of the witnesses (unless the case is resolved sooner by the parties or the Court). Therefore, the Court will deny the Defendants’ Motion to Dismiss.”

Jeffrey Kessler, attorney for the teams, welcomed the decision, stating: “We are pleased with today’s decision by Judge Bell to deny the Motions to Dismiss and Motion for Bond and look forward to presenting our case at trial.”

With the case not scheduled for trial until December 1, 2025, the entirety of the 2025 NASCAR season will unfold under the shadow of this lawsuit. This ongoing legal battle raises questions about how it might influence commentary, officiating, and penalties involving the teams and drivers directly tied to the case. For Front Row Motorsports, this includes drivers Todd Gilliland, Noah Gragson, and Zane Smith, while 23XI Racing’s roster features Tyler Reddick and Bubba Wallace. Additionally, Denny Hamlin, a key figure in the lawsuit, will continue competing under the banner of Joe Gibbs Racing (JGR).

It remains to be seen whether NASCAR officials can maintain impartiality throughout the season. Any penalties perceived as questionable could add further weight to the claims made by 23XI and Front Row Motorsports. For instance, should Hamlin face disciplinary action for an incident that appears ambiguous or unfair, JGR’s response will undoubtedly be scrutinized. In the past, JGR declined to appeal when Hamlin was penalized in 2023 for hitting Ross Chastain at Phoenix—a decision made long after the race concluded and following Hamlin’s admission on his podcast. Given the precedent, will JGR defend Hamlin this time, or will they once again step aside?

The situation also puts NASCAR’s relationship with Michael Jordan under the spotlight. Once celebrated for his role in bringing new energy and a broader fanbase to the sport, Jordan’s involvement in a lawsuit that has so far favored the plaintiffs could alter NASCAR’s public stance toward him. Will the glowing praise continue, or will Jordan’s role in challenging the sport’s governance lead to a more strained dynamic? As the 2025 season progresses, these dynamics will likely add an intriguing subtext to every on-track decision and off-track interaction.

by Laurie White