23XI Racing and Front Row Motorsports have "received a preliminary injunction" from U.S. District Court Judge Kenneth Bell that will "allow the organizations to race as chartered NASCAR Cup Series teams in 2025" rather than competing as open teams, according to court documents filed today. The ruling also states that NASCAR "cannot block the teams from signing the agreement, nor can it nix the teams’ acquisitions of former Stewart-Haas Racing charters they intended to purchase" (FRONT STRETCH, 12/18). The teams lost their initial motion for preliminary injunction in November with Judge Frank D. Whitney noting " their failure to prove irreparable harm would come as a result of losing the charters" (MOTORSPORT, 12/18).
In his filing, Bell ruled that "because drivers notified their teams of potential breach of contract and sponsors said they are reviewing their financial commitments," there was enough evidence to "show irreparable harm." 23XI driver Tyler Reddick "would have become a free agent Dec. 19 because the team is required to provide him a chartered car" and his leaving is "not something that could be compensated by financial damages if the teams ultimately won the lawsuit" (FOXSPORTS.com, 12/18).
Reaction to the ruling from 23XI co-owner Denny Hamlin:
YESSSSSSS!!!!!!!
— Denny Hamlin (@dennyhamlin) December 18, 2024
Court details from SBJ's Adam Stern:
U.S. District Court Judge Kenneth Bell on what changed: "[23XI and Front Row's] 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. ... These are changed circumstances." pic.twitter.com/4D0PXgtvzM
— Adam Stern (@A_S12) December 18, 2024
While U.S. District Court Judge Kenneth Bell wrote that he "does not reach and expresses no opinion as to Plaintiffs’ likelihood of success on their other Sherman Act claims," he later added: "The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market." pic.twitter.com/fX7nTPlm4U
— Adam Stern (@A_S12) December 18, 2024
