The latest turn in the antitrust litigation pitting 23XI Racing and Front Row Motorsports against NASCAR has NASCAR saying the two teams’ demand for a preliminary injunction is now much ado about nothing.
In a brief authored by Christopher S. Yates and other attorneys from Latham & Watkins and Shumaker, Loop & Kendrick, NASCAR on Friday says it has voluntarily agreed to “limit its lawful business conduct” for the period of time until completion of a jury trial scheduled to begin on Dec. 1 in North Carolina. NASCAR asserts it will take steps in response to U.S. District Judge Kenneth D. Bell’s “concerns about the potential for the creation of juror bias” before a trial starts. Bell held a hearing with attorneys for the teams and NASCAR on Thursday.
More specifically, NASCAR says that up to six open teams will be eligible for starting grid positions for the remainder of the 2025 Cup Series Season. The association also pledges to not sell any additional charters for the season. Further, while there are two inactive charters previously held by Stewart-Haas Racing, NASCAR promises to not “effectuate a sale” of those charters without Bell’s blessing.
NASCAR suggests its willingness to permit 23XI and Front Row to compete as open teams for the remainder of the season renders moot the two teams’ demand for an injunction.
As has been litigated intensely over the last year, 23XI and Front Row want to compete with the same benefits as charter teams without relinquishing their legal claims. NASCAR hopes Bell will conclude the two teams aren’t harmed by status as open teams rather than charter teams, and thus those teams’ drivers, including Tyler Reddick and Bubba Wallace, as well as teams’ sponsors and business partners wouldn’t see reason to cut ties. If Bell doesn’t believe 23XI and Front Row would be harmed in the absence of an injunction, he’d be less inclined to order an injunction.
Jeffrey Kessler, who is lead attorney for 23XI and Front Row in the litigation, argues not so fast in a statement mentioned in NASCAR’s filing and sent to the media by email.
Kessler says that his clients “do not agree” that their demand for an injunction has been rendered moot. He also disputes NASCAR’s “representations” that 23XI and Front Row wouldn’t face irreparable harm without an injunction. Kessler added that his clients will detail their position to Bell on Sept. 2.