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NASCAR Battles Back: Rebuts 23XI and Front Row Motorsports’ Legal Bid to Secure 2025 Charters

Harry Bright by Harry Bright
October 25, 2024
in Motorsports
Reading Time: 2 mins read
0
NASCAR Battles Back: Rebuts 23XI and Front Row Motorsports’ Legal Bid to Secure 2025 Charters

Sep 1, 2024; Darlington, South Carolina, USA; NASCAR Cup Series Team 23XI owner Michael Jordan watches a video board during the Cook Out Southern 500 at Darlington Raceway. Mandatory Credit: Jasen Vinlove-USA TODAY Sports

In a high-stakes legal showdown, NASCAR issued a forceful rebuttal to the preliminary injunction sought by 23XI and Front Row Motorsports, two teams aiming to retain their charters and race eligibility for the 2025 season as they challenge NASCAR in an antitrust lawsuit. This legal clash stems from prolonged negotiations over the upcoming NASCAR Cup Series Charter Agreement, which concluded in August with NASCAR’s final offer. While most teams signed the agreement, 23XI and Front Row did not, and they now seek a court’s intervention to maintain their charters as the lawsuit unfolds.

NASCAR’s rebuttal calls out the teams’ request as an attempt to gain leverage rather than address “irreparable harm.” It argues that the motion “seeks to change the status quo” and primarily aims to secure financial gains. NASCAR alleges the lawsuit “is not about protecting competition” but is instead a bid for increased revenue and better terms than those reached in lengthy negotiations.

The series went on to call the injunction plea “a masterclass in contradiction.” NASCAR pointed out that the teams’ criticism of the 2025 Charter as “anti-competitive” comes despite it being the product of collective bargaining, which resulted in greater revenue sharing and secured guaranteed race spots for Cup Series teams. The rebuttal highlights that while 23XI and Front Row missed the signing deadline, they had participated in the previous Charter Agreement from 2016 without raising issues.

NASCAR also noted that the teams are asking the court to enforce terms they originally rejected. NASCAR underscored that it had made concessions in media revenue distribution during negotiations and even extended the charter term, although it stopped short of making them permanent—a point of contention that reportedly led the two teams to boycott a Team Owner Council meeting in April.

Both 23XI and Front Row, which each run two chartered entries, are also in the process of acquiring a third charter from Stewart-Haas Racing. NASCAR’s rebuttal noted that neither team has submitted the required transfer requests for these additional charters.

Closing out its response, NASCAR warned that granting the injunction would impose “real harm” on the organization and on teams that signed the 2025 Charter Agreement. With teams needing budget clarity for the 2025 season, NASCAR argued that a last-minute charter reallocation would disrupt prize calculations and overall budgeting. Additionally, NASCAR contends that “forcing NASCAR into an unwanted contract” would undermine the public’s interest.

The scheduled hearing for the injunction is set for November 4, a date that could set the stage for one of the most significant rulings in modern NASCAR history.

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