NASCAR lawsuit: Judge denies motion to dismiss 23XI, Front Row antitrust case

Judge Kenneth Bell has made his decision regarding the two motions debated in court this week in the NASCAR lawsuit. The court has denied both motions, a big hit to the sanctioning body.

NASCAR, the defendants, submitted a motion to dismiss the lawsuit outright. That has been denied. They also had a motion that would have made 23XI Racing and Front Row post a bond with their 2025 charter money placed in an escrow account. That has been denied as well.

NASCAR argued that if they were to win the lawsuit, they would be entitled to the charter money that the teams earn this season. The court does not see it the same way.

While the motion to dismiss and motion to post bond have been denied, there is still hope for NASCAR in this specific situation. In terms of money paid to the teams, there will be no bond or escrow account made.

Instead, should NASCAR win out in the lawsuit or reach a settlement where they are entitled to reimbursement, the court still has the ability to do so. However, as it stands now, they will have to pay 23XI and Front Row.

Those payments are related to being chartered teams. Each chartered team is paid out roughly $5 million each. That means teams like 23XI and Front Row with three cars will receive about $15 million in 2025.

Due to the benefits NASCAR also receives from the teams being in the sport, Judge Bell had to deny the motion. He sees the payments as “fair compensation” for team obligations.

NASCAR lawsuit: Judge names Jim France in ruling

This isn’t just a lawsuit against NASCAR. Let’s not forget that James “Jim” France is a party to this as well. As part of his ruling, Judge Bell named Mr. France. While it wasn’t in the main body of the text, it was in a footnote.

“The Court also finds that Plaintiffs have sufficiently alleged antitrust claims against James France individually. Taking as true Plaintiff’s overall factual allegations of Mr. France’s ownership and executive position and the specifics of NASCAR’s alleged wrongful conduct, Plaintiffs have plausibly alleged that he directed, controlled and/or ratified that conduct.”

So, it sounds like 23XI and Front Row are doing their job. At least, the attorneys are. Judge Bell believes there is merit to this antitrust case.

When this all began, it felt like an uphill battle for the teams. Lately with the preliminary injunction ruling and denying these motions, the teams appear to have the upperhand.