The U.S. Court of Appeals in Richmond, Virginia, granted a preliminary injunction to 23XI Racing and Front Row Motorsports in December last year, allowing the teams to race with charters without certain conditions of the 2025 Charter Agreement. NASCAR aimed to overturn this injunction at a hearing on May 9th.
Following the hearing, the Court ruled in favor of NASCAR, revoking the injunction. This decision could force 23XI Racing and Front Row Motorsports to operate as open teams without charters for the rest of the year, unless they request another hearing. If no rehearing is requested, the final judgement will take effect on June 26.
The revoked injunction may pose financial challenges for the teams, affecting their ability to qualify each week and potentially jeopardizing sponsor relationships and driver contracts. This move could also impact their on-track performance and parity with championship rivals benefiting from the Charter Agreement.
The decision to revoke the injunction was based on the judges’ belief that the teams shouldn’t enjoy the benefits of the Charter Agreement while suing NASCAR over its terms, as well as doubts about the validity of the antitrust claims made by the team’s attorney, Jeffrey Kessler. The court also mentioned the teams’ failure to show a strong likelihood of succeeding in their case as a reason for the revocation. The trial for the lawsuit is scheduled for December this year.
