NASCAR Lawsuit Update: Michael Jordan-led 23XI and FRM file appeal after preliminary injunction denial
23XI Racing and Front Row Motorsports have filed an appeal to the U.S. Court of Appeals to keep their future in racing alive. The appeal involves the denial of the preliminary injunction after the first hearing in Charlotte last week.
For the uninitiated, 23XI Racing, co-owned by NBA Hall of Famer Michael Jordan, filed an antitrust lawsuit against NASCAR for alleged monopolistic practices last month. Only Front Row Motorsports joined 23XI in the legal battle, while the rest of the NASCAR teams signed the new charter deals.
Per NASCAR insider Joseph Srigley, the two plaintiffs released the notice of appeal filed to the U.S. Court of Appeals. The notice read:
“Notice is hereby given that plaintiffs 2311 Racing, LLC (“23XI”), d/b/a 23XI Racing, and Front Row Motorsports, Inc. (“Front Row” and together with 23XI, “Plaintiffs”) hereby appeal to the United States Court of Appeals for the Fourth Circuit from the Court’s Order Denying Without Prejudice Plaintiffs’ Motion For Preliminary Injunction (Dkt. 42), entered in this action on November 8, 2024, together with all underlying orders, rulings, and findings.”
The appeal aims to allow 23XI Racing and Front Row Motorsports to race in the 2025 NASCAR Cup Series season competitively.
Without a preliminary injunction, the two teams will not have guaranteed entries into races next year, having skipped the new charter agreement last September. This also means the plaintiffs will not have guaranteed payouts, which could affect their future in the sport.
The sponsorships could also be affected given the teams will not compete competitively on track.
23XI Racing fields two drivers in the Cup Series, Tyler Reddick in the No. 45 Toyota Camry and Bubba Wallace in the No. 23 car. Meanwhile, Front Row Motorsports signed Noah Gragson and Todd Gilliland, with a third charter acquired from Stewart-Haas Racing yet to be occupied.
23XI Racing reaction to preliminary injunction denial for NASCAR lawsuit
Following the denial of the preliminary injunction last week, 23XI Racing, led by antitrust lawyer Jeff Kessler, released a statement together with Front Row Motorsports. While the plaintiffs appreciated the court for expediting the case, they expressed disappointment with the denial.
In an X (formerly Twitter) post by 23XI Racing, Kessler stated:
“We are pleased with the court’s decision to expedite discovery and fast track the schedule in our case against NASCAR. Although we are disappointed that the preliminary injunction was denied without prejudice and as premature, which we intend to appeal, this denial has no bearing on the merits of our case."
“My clients will move forward to race in 2025 and continue to fight for a more fair and equitable system in NASCAR that complies with antitrust law,” the attorney added.
According to the court, the plaintiffs could not show they would suffer irreparable harm without preliminary injunction, instead offering mere speculation. The court stated (via NASCAR insider Bob Pockrass):
“Here, although Plaintiffs have alleged that they will face a risk of irreparable harm, they have not sufficiently alleged present, immediate, urgent irreparable harm, but rather only speculative, possible harm. That is, although Plaintiffs allege they are on the brink of irreparable harm, the 2025 racing season is months away – the stock cars remain in the garage.”
With the ongoing NASCAR lawsuit battle, the involved parties could have a busy off-season. The 2024 season concluded at Phoenix Raceway where Joey Logano won his third Cup Series championship title.