According to a statement released by the attorney representing 23XI Racing and Front Row Motorsports as both teams sue NASCAR, the sanctioning body has made a significant decision that effects one element of the legal process.
NASCAR has removed the ‘release clause’ from the open entry blank, the one identical in the charter agreement, that prevents any participant from suing the sanctioning body on anticompetitive grounds.
The federal judge overseeing the lawsuit last week denied the teams’ preliminary injunction request, one that at a minimum would have removed that provision from the open team entry blank, because it would prevent the teams from being able to compete and bring forth litigation.
It was unclear if that language was actually enforceable in the first place and NASCAR has not signaled a reason it removed that language from the open entry blank for next season.
The two teams appealed to the fourth circuit over its denied injunction request, which also asked the court to retain the charter status for the duration of the legal process, even though the they did not sign the charter extension, and was denied with the judge saying the Plaintiffs did not prove irreparable harm.
However, the judge did order expedited discovery, the exchange of key documents for both parties to review, and suggested that he would fast track the case, recognizing the time sensitive nature of a decision. This is not something a judge does when they feel the case is frivolous or entirely without merit.
All told, even if the appeal does not go the way of 23XI and Front Row, both teams will for sure be on the grid next season, even if it means running as open entrants until the lawsuit reaches a conclusion.
This was something 23XI Racing co-owner Denny Hamlin suggested would prevent his team from racing next season, if it meant the lawsuit was at risk of being thrown out.
Lead attorney Jeffrey Kessler issued the following statement on the matter.
“We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23Xl and Front Row Motorsports to race as open teams in 2025. My clients will continue their appeal to the 4th Circuit to issue an injunction so that they can run as chartered teams therefore avoiding irreparable harm.
Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”
In the shortest possible terms, this means that NASCAR made a decision that provides a pathway for 23XI Racing and Front Row to race next season, even if it doesn’t win it injunction appeal, and in the process seemingly lessens the potential of ‘irreparable harm’ to the teams in the process.
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