In a major development in the antitrust lawsuit against NASCAR, a judge has issued a preliminary injunction to 23XI Racing and Front Row Motorsports that will allow them to compete as chartered Cup Series race teams in 2025. The ruling will also allow the two organizations to complete the purchase of two charters from the now-defunct Stewart-Haas Racing, which must be approved by NASCAR.
After refusing to agree to the terms of NASCAR's new charter agreement with its race teams for 2025 and suing the sanctioning body on antitrust grounds, claiming the sanctioning body was using anticompetitive practices to enrich itself at the expense of its race teams, 23XI and Front Row's preliminary injunction request was granted by U.S. District Judge Kenneth D. Bell on grounds that included likelihood of success, irreparable harm, balancing of equities and public interest. The ruling on irreparable harm made particular note of the contracts of 23XI Racing's current drivers, namely Tyler Reddick, who won last year's regular season championship and made the Cup Series Championship 4.
According to court documents, Reddick had given notice that 23XI was "in breach of his driver contract" and would have been able to become a free agent had the Court not granted the preliminary injunction by Dec. 18. In addition, Cup Series star and 23XI driver Bubba Wallace had also informed the team that he needed to know that it intends to compete "immediately" so he could explore opportunities with other teams.
Judge Bell noted that the two race teams would "likely suffer significant harm" had they been forced to race without a charter in 2025, but that NASCAR would not be "significantly harmed" in allowing them to race under the charter agreement. It was noted that since NASCAR had allowed the two organizations the opportunity to run the full season as Open teams (without the competitive and financial benefits that come with being chartered) in 2025, "there should be no practical difference" in them running as chartered teams.
The court also found NASCAR to be in possession of monopoly power in the "relevant market," noting the unique cars, specialized teams, and barriers for others to enter the professional stock car racing market. In terms of public interest, Judge Bell also ruled that the best teams and best drivers being permitted to compete is in the interest of NASCAR fans and people who may become NASCAR fans.
"The public has an interest in preserving the rights of litigants to pursue legal claims in good faith, particularly antitrust claims that aim to preserve the process of commercial competition," Judge Bell wrote. "Finally, the important public interest in supporting freedom of contract is not significantly undermined by preserving the status quo (by allowing Plaintiffs' cars to race as chartered cars) until the lawfulness of Defendants' conduct is promptly resolved.
"If the 2025 charter agreement is fully lawful then it will be upheld, and defendants won't be required to do business with plaintiffs. If, however, plaintiffs are successful then a lawful agreement and/or other appropriate remedy will be the result, all to the public good."
The preliminary injunction will now allow both 23XI and Front Row Motorsports to compete in the NASCAR Cup Series in 2025 under the terms of the new charter agreement, with the exception of the "release" language that prevents chartered race teams from pursuing legal action against NASCAR. The preliminary injunction also prevents NASCAR from refusing to approve the teams' purchase of two charters from the now-defunct Stewart-Haas Racing.
Both 23XI and Front Row had obtained an SHR charter in order to expand, but an affidavit filed last week by Front Row general manager Jerry Freeze claimed that NASCAR had objected to the transfer of charters and would only approve the deal if the team dropped their lawsuit. Both 23XI and Front Row will now field three full-time cars in 2025, with 23XI having hired rookie Riley Herbst to drive the No. 35 Toyota and Front Row enlisting Noah Gragson to drive a third car alongside Todd Gilliland and another driver to be determined.
NASCAR has the right to appeal the ruling, though it had yet to do so as of Wednesday afternoon. The news of the preliminary injunction being granted was met with acclaim by 23XI co-owner Denny Hamlin as well as attorney Jeffrey Kessler.
"We welcome today's decision by Judge Bell granting a preliminary injunction in our favor," Kessler said in a statement. "The court's ruling allows 23XI and Front Row to race existing cars as chartered teams in next year's Cup Series. The decision also requires NASCAR to approve both teams' purchases of a third charter from Stewart-Haas Racing and allow these cars to also race as chartered teams in the 2025 season.
"We are confident in the strength of our case and will continue to fight so that racing can thrive and become a more competitive and fair sport in ways that benefit teams, drivers, sponsors and, most importantly, our fans."
The court ruling also states that a case management schedule will be set, which -- unless the parties involved reach a settlement -- will allow for a trial that will be concluded before the start of the 2026 Cup Series season.
23XI Racing, co-owned by Hamlin and NBA icon Michael Jordan, first entered the Cup Series in 2021 and has quickly grown from an upstart organization into a championship contender. Front Row Motorsports, meanwhile, has fielded Cup teams since 2004 and won the 2021 Daytona 500 with driver Michael McDowell.
