23XI and FRM claim court ruling sets “dangerous precedent” as they appeal decision

23XI Racing and Front Row Motorsports are on the precipice of losing their charters mid-season in a legal loss that would cause an immediate financial hit for the two multi-car organizations. 
On June 5th, the U.S. Court of Appeals ruled in favor of NASCAR, revoking the preliminary injunction that allowed 23XI and FRM to race as chartered teams while this antitrust lawsuit is ongoing. The clock is ticking and should the teams fail to overturn this ruling, both of them will lose all three of their charters by the end of June.

Denny Hamlin, Michael Jordan
Photo by: Chris Graythen – Getty Images

As expected, they are now appealing this decision and asking the courts to reconsider. Jeffrey Kessler, the lead attorney for both 23XI and FRM, released the following statement on Friday: 
“Today, we filed a petition with the U.S. Court of Appeals for the Fourth Circuit requesting a rehearing before the full court. This follows a panel decision that reversed a District Court ruling granting a preliminary injunction, which had allowed 23XI and Front Row Motorsports to compete as chartered teams during the 2025 season while pursuing their antitrust claims. The panel’s decision does not address the merits of our case. It was based solely on a narrow question: whether the release of claims in the charter agreement could be considered anticompetitive.
“If upheld, the ruling would set a dangerous precedent, allowing monopolists to shield themselves from legal challenges simply by requiring release language as a condition of doing business with the monopoly. Our lawsuit is about making NASCAR more competitive and fair. The release provision is just one of many anticompetitive tactics NASCAR has used to preserve its monopoly. We remain fully confident in our case and are committed to racing the full season—regardless of the outcome of this petition.”
The court heavily questioned Kessler about the merits of the injunction in previous hearings and did not agree with his arguments, telling him that his antitrust theory “is not supported by any case of which we are aware.” They repeatedly told him that “you can’t have your cake and eat it too,” speaking to how the teams benefit from the 2025 Charter Agreement while fighting NASCAR on the merits of certain clauses that exist within it.
The trial date for the lawsuit is set for December of this year, and NASCAR has since countersued the teams as this legal saga only escalates. 
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Nick DeGroot

NASCAR Cup

Front Row Motorsports

23XI Racing

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