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Here’s What Happened This Week With the 23XI/FRM Lawsuit (Dec. 14-Dec. 20)

The antitrust lawsuit case between 23XI Racing and Front Row Motorsports vs. NASCAR continued in a major way this week as the court delivered a huge order granting the teams their sought-after preliminary injunction. 

Here’s everything you need to know from this week’s filings and the order.

  • “Defendants’ motion to dismiss is a fantasy.” That’s how the first of two memorandums from the teams began Monday, Dec. 16. These two documents opposed NASCAR’s motion to dismiss filed at the end of the previous week.

  • Another Monday filing detailed an attorneys’ conference where the sides met to discuss case deadlines.

  • Then on Wednesday, Dec. 18, the court handed down an order granting the teams their preliminary injunction.

  • The court considered granting the injunction a way to “give fans of stock car racing the opportunity to watch the full slate of teams” while allowing the teams’ “antitrust legal challenges to be considered.”

  • The court also ruled that the open status of the cars and lack of guaranteed entry into each race proved the teams would “likely suffer irreparable harm through the loss of contractual control over their best drivers.”  
See also
23XI & FRM Receive Preliminary Injunction To Race With Charters for 2025
  • The preliminary injunction entered by the court is limited to the 2025 NASCAR Cup Series season, allowing the teams to enter their two cars under the charter terms (minus the antitrust release clause).

  • The court also prohibited NASCAR from refusing the purchase of the two Stewart-Haas Racing charters.

  • Playing into the court’s decision, Tyler Reddick notified 23XI Racing on Nov. 18 that it had breached their contract, and the team had 30 days to provide assurances to Reddick it would keep its status as a chartered car. Riley Herbst and Noah Gragson’s contracts contained similar language.

  • Bubba Wallace told 23XI “he needs to know how it intends to compete ‘immediately’ so that he can explore seats right away with other teams.” Corey Heim had also asked for clarity, preparing to “speak with other Cup race teams to see if any other opportunities would exist.” Heim is a reserve driver for 23XI.

  • Monster Energy emailed 23XI on Nov. 23 “stating that it was reconsidering its entire relationship” with the team. Among their concerns, Monster shared worries “’both [23XI cars] could miss the Daytona 500 … [and] that Reddick will leave the team … on Dec. 31.’”

  • Love’s Travel Stops emailed FRM the day before with similar concerns about contractual obligations. These details had been previously sealed when the teams refiled for the preliminary injunction on Nov. 26, and it moved likely harm from “remote and speculative to present and immediate.”

  • Other factors that considered into the granting of the injunction included the teams showing a likelihood of success in their antitrust attack, as well as public interest that favors the injunction for 2025.
  • 23XI released this statement:
  • Dec. 19 (Thursday), NASCAR filed a stay, hoping to stop the preliminary injunction from taking place. NASCAR claimed the shoe is on the other foot, and that it would now “suffer irreparable harm without a stay.”

  • NASCAR added that being forced to transfer the two extra SHR charters extends past the limited injunction boundaries, and it would be forced “into a seven- to 14-year contractual relationship” with the teams in those two charters, adding “it would be difficult, if not impossible, to unwind.”

  • In another filing, NASCAR also asked the court to require the teams to post an injunction bond, and it later asked for an expedited schedule for the stay and filed a notice to appeal the injunction order.

  • To be clear, NASCAR’s largest objection to the injunction is the requirement to approve the SHR charter transfers. 

  • Friday (Dec. 20), the court set forward the case schedule and deadlines. Included in this, a completion of discovery has a deadline of Sept. 19, 2025, and a trial by jury is scheduled for Dec. 1, 2025.

Caleb began sports writing in 2023 with The Liberty Champion, where he officially covered his first NASCAR race at Richmond in the spring. While there, Caleb met some of the guys from Frontstretch, and he joined the video editing team after graduating from Liberty University with degrees in Strategic Communications and Sports Journalism. Caleb currently work full-time as a Multi-Media Journalist with LEX 18 News in Lexington, Kentucky and contributes to Frontstretch with writing and video editing. He's also behind-the-scenes or on camera for the Happy Hour Podcast, live every Tuesday night at 7:30!


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Charlie

I read the entire ruling. Judge Bell wrote a very limited injunction that will reverse charter sales, etc., should the Fourth Circuit Court rule against him. That ruling will first have a three-judge panel and if one party isn’t satisfied with that ruling can petition for I believe a seven-judge panel to hear it. Then if someone isn’t satisfied, it’s off to the Supreme Court, who can either let the lower-court-ruling stand or take the case. That puts this case somewhere in 2028 for final ruling. NASCAR should win at the Supreme Court according to its current makeup.
I believe Bell will not stay his injunction. But this is not a defeat for NASCAR, a minor setback for them, but the law is still on its side. Interesting times.

Echo

The supreme court will not hear this case. Whatever the lower court decides will stand. The supreme are going to be way to busy to care about denny hamlin.

Charlie

I believe i stated above: “off to the Supreme Court, who can either let the lower-court-ruling stand or take the case.”