23XI Racing and Front Row Motorsports clashed with NASCAR in a heated legal battle on Friday, with oral arguments heard by Judges Paul Victor Niemeyer, Steven Agee, and Stephanie Thacker at the United States Court of Appeals in Richmond, Virginia. The appeal revolves around NASCAR’s attempt to overturn a preliminary injunction granted to 23XI and FRM in December 2024, allowing them to race as chartered teams without being bound by certain conditions in the 2025 Charter Agreement, which they claim are antitrust violations when considered with other factors.
During the proceedings, NASCAR’s lead attorney Christopher Yates argued that there was nothing preventing the teams from competing even if the injunction was reversed, highlighting that the teams had rejected a contract offer and were now seeking to be bound by it. Yates also contested the allegation of NASCAR’s unlawful monopoly status, pointing to the lengthy charter negotiation process. Judges, particularly Judge Niemeyer, posed probing questions to NASCAR during this phase, focusing on the antitrust implications of the case.
The lead attorney for the teams, Jeffrey Kessler, faced challenges from Judge Niemeyer on the concept of having it both ways regarding contracts and antitrust claims. Kessler emphasized the issue of irreparable harm, prompting further scrutiny from the judge on the likelihood of success based on antitrust theory. The release clause at the center of the dispute was a key point of contention between the parties, with both sides vigorously defending their positions before the appellate court.
Overall, the oral arguments highlighted the complex legal and competitive issues at the heart of the dispute between 23XI Racing, Front Row Motorsports, and NASCAR, underscoring the high stakes and divergent perspectives on the matter.
