The ongoing lawsuit has taken yet another unexpected turn. NASCAR isn’t happy with the court’s verdict after a judge ruled the preliminary injunction in 23XI Racing and Front Row Motorsports’ favor and is expected to appeal. With the 2025 season on the horizon, the plaintiffs need time to prepare, especially after purchasing their new charters from Stewart-Haas Racing. However, it seems like the sanctioning body is determined to delay the enforcement of the injunction as much as possible, despite making a few rare concessions.
Could the court grant NASCAR’s request to delay the charter transfer until an appeal on the injunction is heard? Time will tell. The organization seems to be making a compelling case for itself, despite being found ‘guilty’ of being somewhat of a monopoly.
Stewart-Haas Racing’s charters face uncertain future
ADVERTISEMENT Article continues below this ad
23XI and Front Row Motorsports have won the battle, but not the war (yet). The preliminary injunction going in their favor was a big win for the plaintiffs, who won’t have to compete as ‘open’ teams for the 2025 season. This means they will have guaranteed spots in each of NASCAR’s 36 points-paying races while not risking losing its sponsors such as Monster Energy, Love’s Travel Stops, and their drivers such as Tyler Reddick and Noah Gragson. However, even though both teams want to expand their Cup Series operations, it seems like NASCAR isn’t willing to give in without a fight.
In recent developments, FOX Sports journalist Bob Pockrass wrote, “NASCAR is asking for the enforcement of preliminary injunction be delayed pending appeal except that NASCAR will guarantee entry of two cars each from Front Row and 23XI in each 2025 Cup race. They ask to delay SHR charter transfers and other benefits of charter membership.” The reason to ask for a delay is simple. As per the filing, the sanctioning body believes that it will “suffer irreparable harm,” if it approves the charter sale, which won’t be limited to just the 2025 season.
Considering that both 23XI and Front Row Motorsports have “not met multiple required conditions for the Charters assignment”, it’s easy to understand why NASCAR is unwilling to approve the sale of Stewart-Haas Racing’s charters. By doing so, they will effectively be tied to the plaintiffs for the next seven to fourteen years in a contractual relationship, and it will be difficult to get the court-ordered transfers overturned once they have occurred. Given the strained relationships with the plaintiffs, NASCAR’s reluctance and decision to appeal was the natural course of action.
The new twist in the ongoing lawsuit will bring more uncertainty about Riley Herbst and Zane Smith’s Cup Series future. Even though Front Row Motorsports has not officially announced a third driver for its team, Smith is likely to take over the role, as long as the SHR charter sale goes through. Even though the preliminary injunction is separate from the anti-trust lawsuit, U.S. District Court Judge Kenneth Bell has found the sanctioning body ‘guilty’ of being a monopoly. According to Adam Stern. Bell said, “The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market which is the market for premier stock car racing teams in the United States.”
ADVERTISEMENT Article continues below this ad
NASCAR makes further demands after losing the preliminary injunction
Trending
The court’s verdict regarding the preliminary injunction has caught NASCAR off-guard. The sanctioning body isn’t one to ‘compromise’, but has been put in a position where they are forced to make concessions amidst the ongoing anti-trust lawsuit. In all likelihood, Tyler Reddick, Bubba Wallace, Todd Gilliland, and Noah Gragson are guaranteed a place in the 2025 Cup Series campaign as NASCAR is only looking for a “partial stay of injunction pending appeal”. However, the organization is also taking measures to protect its finances, should it win the anti-trust lawsuit in 2026.
According to FOX Sports journalist Bob Pockrass, “NASCAR also is asking, b/c it’s not requesting delay in enforcement of the injunction as far as guaranteeing a spot in every race for two cars from 23XI and FRM, for the teams to post a bond (specific amount redacted) to cover any payouts they might have to return if lose case.” With 23XI and Front Row Motorsports competing with at least two charters, the plaintiffs will enjoy the financial benefits as per the new agreement, despite not putting pen to paper while the court case goes on.
ADVERTISEMENT Article continues below this ad
Even though the France family has maintained control of NASCAR with an iron fist in the past, the ongoing lawsuit could potentially alter the sport’s landscape forever. It will be interesting to see the court’s decision after the sanctioning body’s partial appeal of the preliminary injunction, which has only added to the drama during the off-season. Meanwhile, the now-defunct Stewart-Haas Racing is caught up in the crossfire in the battle between the plaintiffs and the sanctioning body, despite shutting operations at the end of the 2024 season.