In a significant development within the NASCAR community, the organization has announced its intention to appeal a recent court ruling that granted a preliminary injunction to 23XI Racing and Front Row Motorsports. This injunction permits these teams to participate as chartered members in the 2025 NASCAR Cup Series, a status that ensures their entry into all races and a share of associated revenues.
The legal dispute originated when 23XI Racing, co-owned by NBA legend Michael Jordan, and Front Row Motorsports filed an antitrust lawsuit against NASCAR. The teams allege that NASCAR’s charter system imposes restrictive conditions that limit competition and equitable revenue distribution. They argue that the current system unfairly disadvantages certain teams, prompting their legal action.
Initially, a federal judge denied the teams’ motion to be recognized as chartered organizations for the upcoming season. However, upon presenting new evidence, the teams successfully obtained a preliminary injunction from U.S. District Judge Kenneth Bell in Charlotte, North Carolina. This ruling allows them to compete as chartered teams in the 2025 season, ensuring their participation in all races and access to associated financial benefits.
In response, NASCAR has filed an appeal against this decision, seeking to overturn the injunction. The organization has also requested an emergency partial stay, aiming to delay the enforcement of the injunction pending the outcome of the appeal. Specifically, NASCAR is asking for the enforcement of the preliminary injunction to be delayed, except that it will guarantee entry of two cars each from Front Row Motorsports and 23XI Racing in each 2025 Cup race. They also request to delay the approval of charter transfers and other benefits of charter membership.
The legal proceedings are ongoing, with a hearing date set for January 8 to address NASCAR’s motion to dismiss and other pending motions. The court has established a timeline aiming for the case to conclude by late December 2025.
This lawsuit has significant implications for the future structure and governance of NASCAR, as it challenges the current charter system and seeks a more equitable distribution of revenues among teams. The outcome of the appeal and the broader lawsuit will be closely watched by stakeholders across the motorsport industry.
