NASCAR lawsuit: 23XI, Front Row attorney Jeffrey Kessler responds to federal injunction ruling

23XI Racing and Front Row Motorsports have broken their silence on the U.S. Court of Appeals for the Fourth Circuit vacating the preliminary injunction that granted charter status for both teams. Jeffrey Kessler, the attorney for 23XI and Front Row, said they are planning the next step head of the trail in December.

“We are disappointed by today’s ruling by the Fourth District Court of Appeals and are reviewing the decision to determine our next steps,” Kessler said, per Bob Pockrass of FOX Sports. “This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning the trial scheduled for December 1. We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”

23XI and Front Row will not lose their charter status immediately. The teams have a 14-day window to ask the case to be heard by the entire panel of judges at the Court of Appeals. The ruling can go into effect as early as seven days after the deadline to appeal.

“In accordance with the decision of this court, the district court injunctions entered December 18, December 23, and December 26, 2024, are hereby vacated,” the court’s ruling states. “This judgment shall take effect upon issuance of this court’s mandate in accordance with Fed. R. App. P. 41.”

More on 23XI Racing and Front Row Motorsports

The ruling from Judge Niemeyer calls into question the merits of the case on antitrust grounds. “In entering a preliminary injunction in this case, the district court held that the plaintiffs were likely to succeed on the merits of their antitrust action against the National Association for Stock Car Auto Racing, LLC (NASCAR), and its CEO, James France, because NASCAR, as an alleged monopolist, required the plaintiffs, as a condition of doing business with them, to enter into a release for past conduct. Because that theory of antitrust law is not supported by any case of which we are aware, we conclude that it was not a likely basis for success on the merits and vacate the injunction.”

When the injunctions were granted last year, 23XI Racing and Front Row Motorsports argued that the ruling would maintain the status quo. NASCAR argued that it had adjusted the payout structure for the 2025 season to reflect a field of 32 charter teams, not 36.

The NASCAR lawsuit will still happen as it’s set to begin in December. The injunctions allowed 23XI and Front Row to compete with the two charters they had for 2024. But it also allowed them to purchase a charter each from Stewart-Haas Racing. Not having charters will mean the teams will have to compete as open entries and will lose out on a lot of money.

On3’s Jonathan Howard contributed to this story.