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23XI Racing and Front Row Motorsports Secure Charters Amid Ongoing Antitrust Lawsuit Against NASCAR

In a significant legal development, 23XI Racing and Front Row Motorsports have successfully obtained a preliminary injunction that allows them to retain their charters for the upcoming 2025 NASCAR Cup season. This ruling comes as their antitrust lawsuit against NASCAR and the France family proceeds. The injunction specifically pertains to the 2025 Charter Agreement, rendering the contested sections unenforceable during the legal proceedings.

The court’s ruling outlines that the defendants, including NASCAR and associated parties, are mandated to permit both teams to enter two race cars in all NASCAR Cup races for the 2025 season. It further specifies that the “release” clause within the Charter Agreement’s Section 10.3, which restricts teams from filing antitrust claims post-signature, will not be applicable regarding this lawsuit.

Additionally, the ruling states that NASCAR is temporarily restricted from denying the teams’ planned acquisitions of two charters from Stewart-Haas Racing, enabling both 23XI and Front Row Motorsports to compete in the 2025 season using the same terms as other charter teams. The court plans to establish a Case Management schedule, with a trial to settle plaintiffs’ claims anticipated to occur before the beginning of the 2026 NASCAR racing season, provided the parties do not arrive at a voluntary resolution prior.

Legal Precedents and Future Implications

To warrant a preliminary injunction, plaintiffs must demonstrate several key considerations: a likelihood of succeeding on the merits of the case, potential for irreparable harm without the injunction, a favorable balance of equities, and that the injunction aligns with the public interest. Initially, the race teams were denied a similar motion on November 8, as the judge found they had not sufficiently proven the potential for irreparable harm stemming from the loss of their charters. However, subsequent developments led 23XI and Front Row Motorsports to reframe their approach, seeking to compete under the new Charter Agreement while contesting the release clause.

The case has transitioned from Judge Frank D. Whitney, who initially rejected the motion, to Judge Kenneth D. Bell, who will oversee these proceedings moving forward.

Operational Impact on Teams

Wednesday’s ruling allows both racing teams to maintain their charters throughout the ongoing lawsuit, while also enabling them to finalize the purchase of a third charter each from the now-defunct Stewart-Haas Racing, pending NASCAR’s approval. 23XI Racing has revealed plans to debut a third car driven by Riley Herbst, while Front Row Motorsports is expected to expand, with Zane Smith reportedly emerging as a strong candidate for its third seat.

Monopoly Allegations Against NASCAR

A noteworthy aspect of the ruling emerged from the court’s determination that “NASCAR possesses monopoly/monopsony power in the relevant market, specifically in the realm of premier stock car racing teams in the United States.” The court additionally noted that neither Formula 1 nor IndyCar serve as substitutes, asserting that “NASCAR fully controls which race teams can compete at the highest level of stock car racing,” effectively claiming a 100% market share. This acknowledgment aligns with the teams’ central argument in their antitrust lawsuit, which seeks to challenge NASCAR’s status as an unlawful monopoly.

NASCAR retains the option to appeal this decision, which could result in a hearing prior to the start of the 2025 season, potentially complicating the ongoing legal landscape.

As developments unfold, the impact of this ruling will be closely monitored by stakeholders within the NASCAR community and the broader sporting world.

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