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NASCAR Appeals Court Decision Favoring 23XI Racing & Front Row Motorsports in Charter Dispute

Carl Harrison by Carl Harrison
February 13, 2025
in Motorsports
Reading Time: 3 mins read
0
NASCAR Appeals Court Decision Favoring 23XI Racing & Front Row Motorsports in Charter Dispute

Nov 9, 2024; Avondale, Arizona, USA; 23XI Racing team owner Michael Jordan during qualifying for the Cup Series championship race at Phoenix Raceway. Mandatory Credit: Gary A. Vasquez-Imagn Images

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With the 2025 NASCAR Cup Series season officially underway, a major off-track battle is heating up. NASCAR filed a 68-page brief Wednesday in the Fourth Circuit Court of Appeals, urging a reversal of the preliminary injunction granted to 23XI Racing and Front Row Motorsports that allows them to compete under the charter agreement this season.

🚨 Key Points in NASCAR’s Appeal:
📌 NASCAR argues that the district court’s decision violates antitrust laws, misapplies injunction rules, and undermines its business model.
📌 The sanctioning body claims the injunction forces it into business with adversaries, damaging trust with teams that signed the charter agreement.
📌 NASCAR maintains that 23XI Racing and Front Row Motorsports refused multiple opportunities to sign the agreement before NASCAR withdrew the charters.
📌 The court is set to hear oral arguments in May, while the full antitrust trial is scheduled for December 1.


How Did This Start? A Quick Recap

🔹 September 6, 2024: NASCAR gave teams a deadline to sign the 2025-2031 Charter Agreement.
🔹 23XI Racing and Front Row Motorsports were the only two teams (out of 15) that declined to sign.
🔹 NASCAR withdrew their charters, recalculated race purses, and adjusted the Cup Series field for a 32-charter system in 2025.
🔹 October 2, 2024: The two teams filed an antitrust lawsuit, arguing that NASCAR unfairly revoked their charters.
🔹 December 2024: A federal court granted an injunction forcing NASCAR to reinstate the two teams and approve the sale of charters from Stewart-Haas Racing to 23XI and Front Row.
🔹 February 2025: NASCAR appeals the ruling, calling it a “litigation jackpot” for the two teams.

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NASCAR’s Argument: A “Legal Jackpot” for the Teams?

NASCAR’s strongest complaint is that 23XI Racing and Front Row Motorsports are getting preferential treatment after refusing to sign the original agreement.

🗣 NASCAR’s brief states:

“The fact that Plaintiffs can now obtain Charters months after NASCAR withdrew its best-and-final offers – and on different terms that Plaintiffs prefer – is significant for NASCAR and NASCAR competitors.”

The governing body argues that other teams adjusted their strategies for a 32-car field, only to have the late re-addition of 23XI and Front Row disrupt the system.

They also claim the ruling sets a dangerous precedent, allowing teams to refuse agreements, sue NASCAR, and force themselves back in under better terms.

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