NASCAR calls for 23XI, Front Row to post a bond, claims lawsuit has ‘strained’ relationship with teams

The NASCAR lawsuit continues to go back and forth. This time, the sanctioning body is replying to opposition from 23XI and Front Row. Today the filing is a reply in support of NASCAR’s motion for a bond to be issued.

The bond would be created to recover any money NASCAR pays out in 2025 to the teams in the event that they win the lawsuit. Of course, 23XI and Front Row are arguing that such a bond is not needed in this instance.

In the filing, NASCAR names a number of rules and cases to support their argument. To open the reply, attorneys for the sanctioning body did not mince words:

“Plaintiffs’ opposition is a far cry from the allegations in their Complaint that the Charter Agreements are ‘one-sided,’ ‘onerous’ and offered to Charter teams on a ‘take-it-or-leave-it basis.’ Now, Plaintiffs concede that the Charters are arm’s-length commercial contracts whereby NASCAR provides substantial benefits to Charter teams. … That has ramifications with respect to NASCAR’s request that the court impose the bond that Rule 65(c) requires and, also, for the merits of the case.

“The Court’s injunction imposes a de facto contract for the 2025 season; a bond is necessary to allow NASCAR to recover benefits provided to Plaintiffs through that forced agreement in the event NASCAR succeeds on appeal or ultimately on the merits.”

In the NASCAR lawsuit, a judge has determined that 23XI and Front Row must be treated as fully chartered members. That means they get increased payouts for each race, just like they did previously under the last agreement.

NASCAR lawsuit: Sanctioning body asks for insurance on payments

So, NASCAR is arguing that a bond should be created. Money will be placed in that bond equal to the monetary amount teams receive during the season. In case NASCAR wins on appeal or on the merits of the case, they want that money to be reimbursed.

23XI and Front Row are arguing that the money does not need to be reimbursed. NASCAR receives benefits from the teams, using their name, images, and likeness for marketing purposes. They also argue that NASCAR is not being harmed by making these payments.

The NASCAR lawsuit has shown that there are many issues in the sport on the business side. Attorneys for the sanctioning body argued that the money they are paying 23XI and Front Row was going to be used for increased marketing efforts and promotion of the sport. They wanted to entice more Open teams to compete.

Truthfully, the only thing it seems that NASCAR has done to promote more Open teams is add a practice session to Daytona again this season. Outside of that race, there aren’t many teams announcing multi-race schedules for Open teams. If they really want to see more teams compete, why not bump the field back up to 43?

While that argument has no bearing in this legal proceeding, it makes me wonder. As far as NASCAR’s argument in this part of the lawsuit is concerned, it sounds like a solid one. At least, this non-legal expert seems to think so. What do you think? Check out the full filing below.