A federal district court judge has delivered a ruling in the NASCAR antitrust lawsuit involving 23XI Racing, Front Row Motorsports, and NASCAR. The legal process now allows the charter acquisitions from Stewart-Haas Racing to move forward in the appeals stage. This development follows an emergency motion and preliminary injunctions regarding the charter transfer process.
The lawsuit dates back to October 2, 2024, when 23XI Racing and Front Row Motorsports filed a legal complaint against NASCAR and its chairman, Jim France. They assert that NASCAR’s conduct infringes upon antitrust laws, with claims that NASCAR’s practices are monopolistic and overly restrictive.
Charters in NASCAR hold substantial importance as they guarantee a team a spot to compete, along with financial incentives and protections. However, conflict arose when 23XI Racing and Front Row Motorsports declined to renew their charter agreements due to concerning clauses that seemed to prevent teams from filing antitrust lawsuits against NASCAR.
In response, Judge Kenneth D. Bell granted a preliminary injunction on December 18, 2024, enabling the teams to sign the 2025 charter agreements while excluding the non-competition clauses. This ruling also allowed them to progress with acquiring SHR charters under terms consistent with other charter teams.
Michael Jordan, NBA Hall of Famer and co-owner of 23XI Racing, looks on from the 23XI Racing pit box during the NASCAR Cup Series GEICO 500 at Talladega Superspeedway on April 23, 2023 in Talladega,… Michael Jordan, NBA Hall of Famer and co-owner of 23XI Racing, looks on from the 23XI Racing pit box during the NASCAR Cup Series GEICO 500 at Talladega Superspeedway on April 23, 2023 in Talladega, Alabama. NASCAR antitrust lawsuit judge delivers verdict on 23XI and FRM injunction after appeal. More James Gilbert/Getty Images
Judge Bell has made it clear that NASCAR’s efforts to delay charter transfers will not be tolerated, as outlined in the ruling regarding Front Row Motorsports. Bob Pockrass reported: