Judge Refuses to Issue Temporary Injunction in NASCAR Lawsuit

Federal judge Frank Whitney, who is handling the antitrust lawsuit against NASCAR, today declined to issue a preliminary injunction on behalf of 23XI Racing and Front Row Motorsports. The injunction would have allowed them, in 2025, to continue to enjoy the benefits of having a charter even though both teams were the only ones that refused to sign a new charter agreement. Their lawsuit alleges, among other things, that NASCAR is a monopoly. They want access to NASCAR’s finances, even though the sanctioning body is privately owned.

Both 23XI and Front Row will appeal the ruling against a preliminary injunction. There is a long legal runway leading to the season-opening Daytona 500 in February, and this injunction doesn’t affect the ongoing legal suit, for which expedited discovery has been granted.

“We are pleased with the court’s decision to expedite discovery and fast track the schedule in our case against NASCAR,” the teams’ attorney, Jeffrey Kessler, said in a statement. “Although we are disappointed that the preliminary injunction was denied without prejudice and as premature, which we intend to appeal, this denial has no bearing on the merits of our case. My clients will move forward to race in 2025 and fight for a more fair and equitable system in NASCAR that complies with antitrust laws.”

There are multiple benefits to having a charter, including more prize money and a guaranteed starting spot in every race, especially important in a big-money event like Daytona. Lacking a charter, the teams would have to qualify to get in the race, and if there are more cars trying to make the race than the starting field allows, they could fail to get in. A charter lets the teams assure potential sponsors that yes, they will be on track, and in front of the TV cameras, for every event.

The 23XI team is owned by basketball’s Michael Jordan and NASCAR driver Denny Hamlin (who continues to drive for Joe Gibbs Racing). The 23XI drivers are Tyler Reddick and Bubba Wallace. Current Front Row drivers are Michael McDowell and Todd Gilliland, though McDowell is moving on from the team after this weekend’s championship finale Sunday at Phoenix.

Said the judge: “At this time, Plaintiffs have not met their burden as required for a preliminary injunction. Should circumstances change, Plaintiffs may file a renewed motion for preliminary injunction.”

Stay tuned. This is likely to get contentious.