NASCAR Fends Off Bid for Temporary Restraining Order in Charter Fight

U.S. District Judge Kenneth D. Bell on Thursday denied a motion for a temporary restraining order that would have ensured the three NASCAR-chartered cars owned by 23XI Racing and Front Row Motorsports could not be revoked.

Bell’s primary reason was that NASCAR has agreed to not sell the charters until the judge has ruled on the teams’ motion for a preliminary injunction. The preliminary injunction seeks the same type of relief as the TRO except it would be designed to last a longer period: Through the reminder of the 2025 Cup Series season and through a trial scheduled for December.

23XI, which is co-owned by Michael Jordan, Denny Hamlin and Curtis Polk, and Front Row sought a TRO because of the expiration of a preliminary injunction that had ensured the teams could enjoy the rights of the 2025 charter agreements without having to accept a mutual release provision. The teams had obtained that injunction from Bell last December, but in June a three-judge panel on the U.S. Court of Appeals for the Fourth Circuit reversed Bell. After 23XI and Front Row recently—and unsuccessfully—sought an en banc review in front of all active judges on the Fourth Circuit, a judicial mandate to end the injunction took effect on Wednesday.

As Bell explained in his latest order, 23XI and Front Row sought a TRO “to stave off what they urge to be the dire consequences of no longer operating as a ‘chartered’ team.” Those “dire consequences” include the possibility that “NASCAR will quickly sell their charters to other racing teams, thereby for all practical purposes ending their existence as a realistic competitor in NASCAR’s Cup Series.”

While Bell acknowledged 23XI and Front Row’s worries, he reasoned the teams have come up short in arguing for a TRO.

To that end, 23XI and Front Row failed to convince Bell they could establish a likelihood of imminent irreparable harm, which is the type of harm that monetary damages can’t later remedy. 

Bell noted that while 23XI and Front Row fear the transfer of charter spots would “destroy their businesses,” NASCAR has agreed it “will not sell any charters” before Bell rules on the motion for a preliminary injunction. 

Likewise, NASCAR has assured that all of 23XI and Front Row’s cars would, if the teams wish to race, qualify for races in Dover and Indianapolis that are set to occur over the next couple of weeks. Bell further pointed out that 23XI and Front Row don’t claim they’re likely to lose drivers or sponsors over the next couple of weeks since the teams’ charter status won’t change. 

In a statement shared with Sportico, 23XI and Front Row attorney Jeffrey Kessler said he and his clients are “disappointed” by the TRO ruling but “remain confident” that they will prevail in their motion for a preliminary injunction. Kessler said Bell rejected the TRO “because NASCAR has agreed to preserve our charters until the preliminary injunction can be decided and because we are assured of qualifying all our cars the next two weeks so that there will be no irreparable harm before the preliminary injunction can be fully briefed and ruled upon.”