The judge overseeing the 23XI Racing, Front Row Motorsports vs. NASCAR antitrust case has denied on Friday the preliminary injunction request made by the two teams.
In other words, for both organizations to race next season, they must do so as open teams without a charter but there are some other elements to consider as well. The open entry blank also contains a provision that also appears in the charter document that releases NASCAR from teams pursuing litigation against the Sanctioning Body on antitrust grounds.
The judge determined that the teams could not prove irreparable harm from racing next season as an open team, following oral arguments on Monday at a courthouse in Charlotte, North Carolina.
The ruling officially stated:
“Second, Plaintiffs have not alleged a “present prospect” of the loss of their drivers. Instead, they allege that their drivers may leave if Plaintiffs compete as open teams.”
“Third, although injunctive relief may be available “where the moving party’s business cannot survive absent a preliminary injunction,” … Plaintiffs have not alleged that their business cannot survive without a preliminary injunction. Instead, they allege that their businesses may not survive without a preliminary injunction.”
“Fourth, although loss of goodwill may justify injunctive relief … at this stage, Plaintiffs have alleged only a potential loss of goodwill, contingent on a host of events occurring, including speculation about how third parties may or may not act.”
“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.”
The two teams have the option to appeal the decision but Judge Frank D Whitney says he intends to ‘fast track’ the litigation process but as it pertains to the injunction, “At this stage, the teams are no closer to irreparable harm than they are to the command, ‘Drivers, start your engines,’ at the first race of the 2025 season.”
NASCAR could also pursue having the case dismissed should the two teams attempt to enter as open participants next year because of that release clause and the onus would be on 23XI and Front Row to prove it as unenforceable.
Their charters expire after December 31 and it’s not entirely clear what NASCAR would do with the charters beyond a stated intent to run a season next year with with 32 chartered teams and eight open, but that doesn’t even details the plans for those other two charters.
There is also the matter of the third charters that 23XI and Front Row have agreed to purchase in principle, but is subject to approval from NASCAR, with league president Steve Phelps saying on Friday during the state of the sport hearing that he ‘doesn’t know’ what will happen to the remaining two Stewart-Haas charters sold to the teams pursuing litigation.
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Judge rules against teams preliminary injunction request