23XI Racing, Front Row Motorsports hit back at NASCAR over preliminary injunction request

Another response has been filed in the 23XI Racing, Front Row Motorsports lawsuit against NASCAR for antitrust claims. Jeffrey Kessler and his fellow counsel have once again put together an argument against the latest claims NASCAR put forth.

The two sides are arguing over a preliminary injunction. 23XI Racing and Front Row have requested the injunction. It would allow the two teams to enter into the 2025 Charter Agreements without being subject to the release of their antitrust claims.

NASCAR has argued against this. They say this would mess with the status quo, they are planning for only 32 chartered teams next season. The sanctioning body also argues that this is simply a way for the teams to get more money out of NASCAR.

The legal team for the Defendants also argued that teams can compete as “open” teams without a charter. As far as irreparable harm to 23XI and Front Row, NASCAR says it is only monetary, which can be restored by the courts in the event the teams win out.

However, the teams have once again replied. This is in further support of their request for a preliminary injunction.

Kessler and his team seemed to pick apart NASCAR’s latest arguments. There were multiple instances where they argued the Defendants did not cite case law properly. That would undermine much of their arguments.

But there is more.

23XI Racing, Front Row seek preliminary injunction

There are a number of points made in the latest filings from 23XI Racing and Front Row. Reading through the reply, here is the best way I can summarize the arguments made.

• The preliminary injunction would not change the status quo. It would return all parties to their previously “uncontested status.” In other words, things would operate as they did this year and the year before that and so on.
• Teams are unable to avoid irreparable harm if an injunction is not granted. Even to race as “open” teams, they must sign an agreement to release antitrust claims against NASCAR.
• 23XI Racing and Front Row Motorsports would lose “goodwill” in the sport. Goodwill is hard to quantify monetarily, producing irreparable harm to the teams.
• Cites SRX shutting down and the only full-time open team to compete in the Cup Series since 2016 as proof of NASCAR’s monopoly power and difficulty of operating outside of the charter agreement.
• NASCAR does not refute its monopoly power or the use of “exclusionary acts” that restrict competition in regard to antitrust law.
• The preliminary injunction will cause no harm to NASCAR but could cause unknown harm to 23XI Racing and Front Row Motorsports. It will only make NASCAR operate under the current status quo.

There are instances where 23XI argues against the way case law was cited. That is above my paygrade, as far as I’m concerned.

You can read the full reply from 23XI Racing below.