Judge Deliberating on Preliminary Injunction for 23XI Racing/Front Row
On Monday, 23XI Racing and Front Row Motorsports got their day in court as the two NASCAR Cup Series teams had their motion for a preliminary injunction, prior to a pending antitrust lawsuit against NASCAR, heard at the Charles R. Jonas U.S. Federal Building, Courthouse in Charlotte, NC.
District Judge Frank D. Whitney presided over the case, and at the end of Monday's session, Whitney stated that both sides presented quite compelling cases. The judge called a recess for the motion of injunction and expects to have a decision on the injunction made by Friday, November 8.
Judge Whitney's decision will serve as the catalyst of what comes next in the legal battle between 23XI/Front Row and NASCAR.
23XI Racing and Front Row Motorsports lead attorney Jeffrey Kessler described in the preliminary injunction hearing that the race teams are seeking an injunction, which would allow the team to compete in the NASCAR Cup Series without signing an agreement forcing them to waive their right to antitrust litigation against the sanctioning body or to continue competing as a Chartered Team under the 2025 Charter Agreement until the pending antitrust lawsuit is completed.
Currently, NASCAR requires Chartered teams and "Open" teams to sign agreements which waive their rights to file antitrust lawsuits against the sanctioning body.
Christopher Yates, the lead attorney representing NASCAR, contested the statements from Kessler and argued that since both race teams signed the 2016 Charter Agreement, which also included the provision waiving the right to bring forth antitrust legal action against NASCAR, the teams have no legal standing to seek an injunction in this case.
Kessler responded to that claim by pointing out that the 2016 Charter Agreement was a separate agreement to the 2025 Agreement, which makes it irrelevant in this case.
Yates also indicated that disparaging public statements from representatives of the teams has led to damages to NASCAR, and the reputation of the sport.
Each side had a total of 30 minutes to present its case for why an injunction should or should not be granted.
It was a compelling back-and-forth in the courtroom and was at times contentious, but through it all Kessler reimained firm in his client's demand to not waive their ability to seek antitrust litigation against the sanctioning body.
"So, we got our first day in court. It was a vigorous argument," Kessler said on the steps outside of the court following Monday's case. "I think we made all the points we had to make, and we're going to look forward to Friday and hopefully get our relief."
While Kessler felt good about the case he presented, the attorney reiterated that he doesn't speculate on the outcome of his cases as he's seen unforeseen outcomes happen in the past. Kessler also took exception to the case that the defence team brought forth.
"I think we laid out very clearly what our request is. I think the other side worked very hard in their papers and their presentation to present a case that doesn't exist," Kessler said. "And I think by the end of the hearing, it was very clear what we're asking for and why we're entitled to that relief."
Kessler continued, "I think I said in open court that I did not think the actual record corresponded to how they presented the facts. How they did it in their slides, and how they did it orally. The judge will make that determination. I was disappointed in the other side for not really portraying the record as it really is."
Repesentatives from NASCAR, as well as their legal team declined to comment following the court case on Monday afternoon.
Other interesting tidbits that were mentioned during Monday's court proceedings included that the 2025 Charter Agreement will send nearly half of the broadcast revenue to the teams, per Yates. Kessler also detailed that 23XI Racing, which has one of its drivers -- Tyler Reddick -- in the Championship 4, could stand to lose their driver as well as the team's sponsors if the team operates as an "Open" team in 2025. According to Kessler, Reddick and his sponsors have a clause in their deal that gives them an out if the team isn't Chartered.
Following Monday's court case, Kessler also indicated that he expects the transactions of Charters which 23XI Racing and Front Row Motorsports have agreed to purchase from Stewart-Haas Racing to go through.
Toby Christie is the Editor-in-Chief of Racing America. He has 15 years of experience as a motorsports journalist and has been with Racing America since 2023.