Nascar slams 23XI and FRM’s ‘unnecessary and inappropriate’ injunction

• 23XI and FRM have to return charters to Nascar on 16th July
• Teams claim the sport will sell its charters immediately, putting them in ‘irreparable jeopardy’

Nascar has dismissed the latest attempt from 23XI Racing and Front Row Motorsports (FRM) to retain their charters as ‘unnecessary and inappropriate’.

In June, the US Court of Appeals overturned the injunction agreed in December 2024 that allowed 23XI and FRM to compete in the Nascar Cup Series and receive the same benefits as other chartered teams while still pursuing their lawsuit against the series.

But 23XI and FRM have now filed a motion for another temporary restraining order and a new preliminary injunction that, if approved, would enable them to retain their charters until the court case finally takes place in December later this year.

Both teams have cited new evidence that Nascar plans to ‘immediately move to sell or issue Plaintiffs’ charters to other entities – putting Plaintiffs in irreparable jeopardy of never getting their charters back and going out of business’. The pair claim to have received a letter from Nascar confirming this intention.

Nascar has dismissed the attempted injunction and wants a response from the courts by 16th July, and has also claimed that 23XI and FRM are refusing to return the money they earned under the 2025 charters thus far.

‘It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction,’ Nascar said in a statement.

‘As both the Fourth Circuit and the District Court suggested, Nascar has made multiple requests to 23XI Racing and Front Row Motorsports to present a proposal to resolve this litigation. We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.

‘We will defend Nascar’s integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere. We remain focused on collaborating with the 13 race teams that signed the 2025 charter agreements and share our mutual goal of delivering the best racing in the world each week, including this weekend in Dover.’

23XI and FRM have three charters each which are worth tens of millions of dollars. With only 36 charters across the Cup Series, six charters becoming available at once would result in intense external interest and, with that, the likely demise of both 23XI and FRM.

If the teams were to continue as open entries for the rest of the season, they would earn less than a third of what a chartered team makes for competing in a race. FRM team owner Bob Jenkins claimed in the original injunction that the payout from the purse would be so low as an open entry that it would not cover the costs of going to the racetrack.

BlackBook says…

Much to Nascar’s chagrin, this saga continues to rumble in the background of the current Cup Series season.

23XI and FRM are showing no signs of backing down, issuing a statement highlighting the ‘irreparable harm’ that would be done if the charters were sold by Nascar, while asserting that the new information ‘overwhelmingly supports our position that a preliminary injunction is legally warranted and necessary’.

This latest development could spell trouble for Nascar. Their apparent intention to sell the teams’ charters immediately could serve as evidence of the anti-competitive behaviour alleged by 23XI and FRM in the original lawsuit.

Indeed, Nascar risks losing basketball icon Michael Jordan, who co-owns 23XI and is a considerable marketing asset for the series. With overall TV viewership already in decline, can Nascar afford to lose such an iconic American figure? Only time will tell.