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U.S. District Court Judge Frank Whitney denied the preliminary injunction filed by 23XI Racing and Front Row Motorsports (FRM) to retain their charters during the ongoing antitrust lawsuit against NASCAR after a Monday hearing where arguments were presented.
Judge Whitney stated in an eight-page release that the teams did not meet their burden of proof, as they failed to clearly show that they would face irreparable harm from losing their charters.
The teams expressed concerns about potential loss of sponsors and drivers if they had to compete as open teams without charters. They also argued that the new Charter Agreement gives NASCAR the power to exclude open competitors entirely.
The judge’s reasoning
Judge Whitney emphasized that a preliminary injunction requires a demonstration of likely irreparable injury, not just a possibility. He noted that the alleged irreparable harm was speculative, as the 2025 racing season is months away.
Todd Gilliland, Front Row Motorsports, Ruedebusch Ford Mustang, Michael McDowell, Front Row Motorsports, Benebone Ford Mustang
Photo by: John Harrelson / NKP / Motorsport Images
23XI and FRM have the option to appeal the ruling.
This decision is a significant development in their legal battle against NASCAR, where they have accused the France family of being “monopolistic bullies.” If upheld, it could greatly impact the financial stability of both teams and require them to qualify for the 2025 Daytona 500 without charters. Additionally, both teams have expressed interest in acquiring a third charter from Stewart-Haas Racing as the team closes down.
NASCAR has announced plans to proceed with 32 charters next year instead of the usual 36, prompting the teams to seek a preliminary injunction. Key figures from 23XI and FRM attended the Monday hearing.
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