By David Morgan, Associate Editor
In the tug of war that has been ongoing between NASCAR, 23XI Racing, and Front Row Motorsports, the two teams notched a win on their belt on Wednesday when a federal judge ruled in their favor and granted them a temporary injunction to allow them to race as chartered teams in 2025.
United States District Judge Kenneth D. Bell released his decision on the injunction that 23XI and FRM had been seeking since their suit against the sanctioning body was filed in the closing weeks of the 2024 NASCAR Cup Series season.
Instead of having to race as “open” teams in 2025, both teams can proceed as chartered cars for their entries already in place, as well as being able to move forward with the purchase of additional charters for the third car that each of the teams have already announced for next season.
“The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market, which is the market for premier stock car racing teams in the United States,” the ruling states.
“NASCAR’s Cup Series is the only premier stock car racing series in the United States, and premier stock car racing is a distinct form of automobile racing with unique cars and highly specialized racing teams for which other types of motorsports like Formula 1 and IndyCar are not substitutes. Therefore, NASCAR fully controls which race teams can compete at the highest level of stock car racing – effectively, it has a 100% market share.”
The judge’s ruling went on to state that NASCAR could not require that the teams sign an agreement releasing them from litigation as a prerequisite for racing in its series.
“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.”
The catalyst toward granting the injuction
Some of the catalysts toward granting the injunction appears to have been spurned on by the threat of drivers from both teams having clauses in their contracts that they would be free to look elsewhere for driving opportunities if the teams raced as open cars next season.
Likewise on the sponsorship front in that sponsors for both teams could shop around for a different home if certain terms in their contracts weren’t met.
“Since the Court denied the initial motion, 23XI’s top 2024 driver Tyler Reddick has…
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