23XI, FRM make surprise decision on lawsuit appeal, NASCAR insider explains what it means

23XI Racing and Front Row Motorsports are dropping the appeal to a preliminary injunction ruling in its antitrust lawsuit against NASCAR, according to FOX Sports’ Bob Pockrass. The insider also explained what it all means moving forward.

23XI and FRM filed the preliminary injunction to run as chartered teams in 2025 while pursuing their lawsuit, but it was denied. They then filed an appeal in federal court and later accused NASCAR of obstructing.

In the court filing, 23XI and FRM explained why they’re dropping the appeal of the ruling. They cited “changing circumstances” as a factor.

“Circumstances have changed in the underlying case, removing the need for this appeal and necessitating Appellants to seek new relief from the district court,” the filing read, via Pockrass.

As for what it all means, Pockrass said it could lead to a couple things. One could be a refile for a preliminary injunction in a district court “if circumstances changed that would make irreparable harm more likely and not as speculative.” The judge left the option open.

The other option, he added, could be settlement talks. However, Pockrass said that would be “more unexpected.”

23XI and FRM’s decision comes before proposed deadline

News of 23XI and FRM’s decision to drop the appeal comes just two days before their proposed Nov. 22 deadline for the appeal brief. NASCAR, however, wanted the deadline to be Nov. 25. For NASCAR’s response, 23XI and Front Row wanted the deadline to be Dec. 4, but NASCAR requested a Dec. 23 deadline. The proposed deadline for 23XI and Front Row’s reply was Dec. 6 for the two teams and Dec. 30 for NASCAR. For the oral argument, the teams wanted the deadline to be Dec. 13, but NASCAR asked for it to be Jan. 26 or later.

All this came after 23XI and Front Row announced they can compete in 2025 as “open teams” after NASCAR removed the anticompetitive release claims that will allow them to race during the lawsuit.

“My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams therefore avoiding irreparable harm,” Jeffrey Kessler, the attorney for the two teams, said, per the AP. “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.”