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NASCAR agrees to 23XI Racing acquisition of Stewart-Haas charter pending appeal

This was just a matter of convenience more than legal principle

NASCAR: Cup Practice and Qualifying
Credit: Jim Dedmon-Imagn Images

As a matter of practicality, NASCAR and 23XI Racing have come to an agreement of sorts on Christmas Eve concerning the charter it is acquiring from Stewart-Haas Racing.

Last week, the federal judge overseeing the antitrust lawsuit granted Front Row Motorsports its injunction request to force NASCAR to approve its own charter acquisition from the shuttered Stewart-Haas. 23XI was not granted their own SHR charter because it was not specifically requested in the filings to that point.

NASCAR is appealing both that decision and the order from judge Kenneth D. Bell to recognize both 23XI and Front Row as if they held charters during the 2025 Cup Series and will file that motion to the Fourth District court in Richmond, Virginia after Christmas.

In the name of expedience and convenience, NASCAR has agreed to go ahead and allow the 23XI charter acquisition from SHR proceed pending the appeal, recognizing that Bell would most likely have granted it under the same reasoning it did the Front Row Motorsports order.

This just allows NASCAR to not have to wait on 23XI to file the motion and then for Judge Bell to decide on it, thus allowing the Sanctioning Body to now go to the Fourth District of Appeals with haste.

NASCAR did so under the agreement that 23XI and Front Row does not use this decision to grant them the charter as part of its argument to the Fourth District. And since it’s being appealed, this can still be undone should the appeals judge rule in NASCAR’s favor.

This was just a matter saving everyone time knowing the likely outcome of a 23XI motion to the district court.

  1. That’s the short version but the legal jargon version is below: In light of the Court’s Orders of December 18, 2024 (Dkt. 74), December 20, 2024 and December 23, 2024, 23XI and Defendants hereby stipulate and agree that the Court may enter the same preliminary injunction with respect to the transfer of a charter signed by Stewart-Haas Racing LLC to 23XI as the Court previously ordered with respect to Front Row Motorsports.
  2. Defendants make this stipulation and agreement solely for purposes of judicial economy and subject to the Court’s statements that it retains the equitable power to ‘unwind” the purchase of the Stewart-Haas Charters should Defendants prevail on their pending appeal or on the merits in the litigation
  3. Defendants’ stipulation and agreement is also subject to 23XI’s agreement, given here, that it will not make any argument that NASCAR’s stipulation and agreement to entry of the aforementioned preliminary injunction in any way deprives the Fourth Circuit of jurisdiction over, or otherwise impairs the Fourth Circuit’s ability to hear for any reason, Defendants’ appeal of the of the grant of the preliminary injunction regarding to the transfer of a charter signed by Stewart-Haas Racing LLC to 23XI.
  4. Defendants’ stipulation and agreement is also subject to 23XI’s agreement, given here, that NASCAR’s stipulation and agreement to entry of the aforementioned preliminary injunction is without prejudice to and has no impact on Defendants’ right to assert counterclaims.

Lawsuit timeline

23XI Racing, Front Row decline to sign NASCAR’s final 2025-2031 charter document
Why 23XI, Front Row filed a lawsuit against NASCAR
23XI, Front Row makes his case in antitrust lawsuit against NASCAR
Richard Childress says he had ‘no choice’ but to sign charter document
How drivers feel about the lawsuit
Michael Jordan comments on his team’s lawsuit against NASCAR
Meet NASCAR’s antitrust defense lawyer
NASCAR files injunction to be included in charter system through lawsuit
NASCAR motions against team’s preliminary injunction request
NASCAR, teams consent to redacting charter details in filings
Teams make case for injunctive relief, expedited discovery
NASCAR’s lengthy rebuttal to injunction, lawsuit
Teams respond to NASCAR response over injunction
23XI, Front Row and NASCAR go to court over injunctions
Judge rules against teams preliminary injunction request
Denny Hamlin says 23XI may not race next year
What preliminary injunction denial means for lawsuit
NASCAR drops ‘lawsuit release clause’ in open agreement
Appeal timeline rebuttal filed by NASCAR
Why 23XI may not have to race in the Clash without charters
Teams drop appeal, may re-file in district court
23XI, Front Row re-file injunction request
NASCAR opposes expedited timeline
France, NASCAR motion to dismiss, deny SHR charter transfer request
NASCAR says injunctive request still fails to show irreparable harm
Teams say NASCAR went back on its word over SHR charters
23XI, Front Row respond to NASCAR’s motion to dismiss
Judge orders NASCAR to issue charters to 23XI, Front Row
NASCAR plans to appeal injunction ruling; other details
Judge grants partial stay of injunction in blunt response to NASCAR
Teams accuse NASCAR of petulance in response to delay request
Why Judge Bell did not delay his injunction order

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