NASCAR Has Issued A Formal Response To A Preliminary Injunction Filed By 23XI Racing And FRM

NASCAR has issued a formal response to a preliminary injunction filed by 23XI Racing and Front Row Motorsports (FRM). The injunction, challenged strongly by NASCAR, deals with the contentious issue of team charters set for the 2025 racing season.

Filed in a document released late Wednesday, NASCAR’s opposition argues that the extraordinary circumstances necessary for such an injunction are not present. This filing comes as the hearing has been delayed due to the approach of Hurricane Milton.

The NASCAR charter system, introduced in 2016, was originally designed to bring stability and increased value to team ownership by guaranteeing entry into points-paying races and providing revenue sharing and other benefits for chartered teams. However, the system has also led to disputes, as exemplified by the current legal challenge involving six team charters vital to both 23XI Racing and FRM.

The response states:

“Defendants are working to prepare oppositions that provide argument, applicable law, and, evidentiary support to demonstrate Defendants positions:

“1) Plaintiffs are seeking a mandatory injunction that is only warranted in the most extraordinary circumstances (which are not present here) since they are seeking to alter the status quo through an injunction requiring NASCAR to provide Charters for 2025 and beyond notwithstanding that the time to sign Charters for 2025 has expired.

“2) Plaintiffs cannot establish irreparable harm since Plaintiffs and their counsel have confirmed that Plaintiffs’ teams will compete as open teams in 2025, which means that money damages can compensate Plaintiffs even if they were to ultimately prevail.

“3) Plaintiffs cannot establish a likelihood of success on the merits for multiple reasons, including that this is a dispute over contract terms, not an antitrust case.”

The lawsuit against NASCAR, filed by 23XI Racing and FRM, contends that NASCAR has violated the Sherman Antitrust Act by fostering monopolistic practices that restrict competition. These allegations include claims of NASCAR’s control over tracks through exclusivity deals and acquisitions, such as that of the Automobile Racing Club of America (ARCA), purportedly aimed at eliminating competition. The lawsuit aims to address these concerns and grant the teams charter status for the 2025 season while the antitrust case unfolds.

The implications of this lawsuit within NASCAR are significant. For 23XI Racing and Front Row Motorsports, securing charters is critical not just for financial reasons but also for strategic purposes as both teams aim to expand to three cars by 2025. Competing as “open” teams could lead to substantial financial losses as Bob Jenkins, owner of FRM, explained:

“Because of our love for the sport and our determination to maintain the race team we have built, we are determined to race next year even if we have to do so on an ‘open’ basis.

“But at some point, the losses may become so severe that we simply cannot continue — causing irreparable harm to our business, our employees, and the communities and fans we are associated with.”