NASCAR teams 23XI Racing and FRM secure injunction in antitrust case

CHARLOTTE, N.C. — 23XI Racing and Front Row Motorsports can compete under the terms of the new NASCAR Cup Series charter agreement in 2025 without releasing their antitrust claims against NASCAR, a judge ruled Wednesday.

“In practical effect, the question before the Court is – Can a monopolist require that a party agree to release the monopolist from all claims that it is violating the antitrust laws as a condition of doing business? The answer is no,” Judge Kenneth D. Bell wrote in his ruling.

Judge Bell granted the two NASCAR Cup Series teams’ second motion for a preliminary injunction. The teams sought the injunction to compete under the 2025 Charter Agreement while the lawsuit moved through the court system.

To get a preliminary injunction, the judge specified that a plaintiff had to show that:

• It is likely to succeed on the merits,
• it is likely to suffer irreparable harm absent injunctive relief,
• the balance of the equities tips in its favor, and
• the injunction would be in the public interest.

The court denied their first motion Nov. 8, specifying the teams needed to show more evidence of why they needed the injunction to avoid any “irreparable harm.” Because the court denied the motion without prejudice, they gave the teams a chance to refile it “should circumstances change.” The teams did that Nov. 26, laying out how circumstances had changed.

According to court documents, Tyler Reddick notified 23XI Racing on Nov. 18 that they breached his Driver and Personal Agreement. The agreement allegedly stipulates 23XI “‘provide the Race Car prepared by 23XI under a NASCAR Cup Series Charter Member Agreement… for Reddick to drive in all Cup Series events’.” Reddick and his management stated he would become a free agent Dec. 18 – what became the day of the ruling – if they didn’t resolve that.

According to court documents, 23XI Racing’s Riley Herbst and Front Row Motorsports’ Noah Gragson each have a similar agreement to put them in chartered cars with their respective teams. Documents show Bubba Wallace and Corey Heim and their management also expressed “similarly urgent concerns.”

“Plaintiffs’ loss of their contractual rights with their drivers coupled with the uncertainty over racing as an “open” team is what moves the needle over the line,” the ruling stated. “The ‘present prospect’ of the loss of star drivers constitutes irreparable harm that “cannot fully be rectified by the final judgment after trial.”

Court documents show Monster Energy sent an email Nov. 23 to 23XI allegedly “stating that it was reconsidering its entire relationship with 23XI.” Documents show FRM allegedly received a similar email Nov. 22 from sponsor Love’s Travel Stops, expressing concern over FRM’s “ability to meet contractual obligations” with “the numerous uncertainties” going into 2025.

In the NASCAR Cup Series, Love’s was the primary sponsor of FRM’s flagship No. 34 Ford in 17 of the 36 points races last year. Monster served as the primary sponsor for 23XI’s No. 45 Toyota in 16 of the 36 points races plus the NASCAR Cup Series’ All-Star Race.

After weighing the evidence, the judge ruled in favor of the teams, also stipulating NASCAR must allow Stewart-Haas Racing to sell a charter each to 23XI and FRM. NASCAR must also let those chartered entries compete without being bound to the antitrust claims release.

We reached out to NASCAR regarding a comment on the ruling but haven’t heard back from them yet.

Attorney Jeffrey Kessler, on behalf of 23XI and FRM, issued this statement:

Read the full ruling here: