Judge in 23XI, FRM lawsuit vs. NASCAR explains change in ruling

23XI Racing and Front Row Motorsports (FRM) have been granted a preliminary injunction to race as chartered teams next season, and the judge explained his reason for the decision. U.S. District Court Judge Kenneth Bell said the team’s concern about racing as an open team was one of the reasons he sided with 23XI and Front Row.

“The ‘present prospect’ of the loss of star drivers constitutes irreparable harm that ‘cannot fully be rectified by the final judgment after trial,'” Bell said in his statement, per Adam Stern of Sports Business Journal. “…These are changed circumstances that the court finds have moved Plaintiffs’ speculative to present and immediate.”

23XI and Front Row are also approved to purchase the charters from Stewart-Haas Racing. NASCAR can appeal the decision but it’s not clear if it will happen.

“The Court hearby enters a limited preliminary injunction only for the duration of the 2025 NASCAR Cup season as follows,” the court decision reads. “Defendants and their agents, servants, employees, attorneys, and all persons in active concert or participation with Defendants, must allow Plaintiffs to each enter two race cars in all NASCAR Cup races under the 2025 Charter Agreement terms applicable to all charter teams, with the exception that the ‘release’ language in Section 10.3 of the 2025 Charter Agreement shall not be enforceable to the extent that it would release or bar Plaintiff’ claims in this action.

23XI nad FRM’s attorney reacts to ruling

After the ruling was made, 23XI and Front Row’s attorney Jeffrey Kessler issued a statement. “We welcome today’s decision by Judge Bell granting a preliminary injunction in our favor. The court’s ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in next year’s Cup Series. The decision also requires NASCAR to approve both teams’ purchases of a third charter from Stewart-Haas Racing and allow these cars to also race as chartered teams in the 2025 season,” Kessler said.

“We are confident in the strength of our case and will continue to fight so that racing can thrive and become a more competitive and fair sport in ways that benefit teams, drivers, sponsors and, most importantly, our fans.”

23XI and Front Row refused to sign the charter agreement, which was signed by the 13 other Cup teams on Sept. 6. Both teams filed a lawsuit in federal court on Oct. 2, claiming NASCAR’s actions violated antitrust laws.

On3’s Jonathan Howard contributed to this story