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NASCAR, 23XI and Front Row face important lawsuit decision on Monday

By Matt Weaver

NASCAR, 23XI and Front Row face important lawsuit decision on Monday

Monday will prove to be a significant day in the 23XI Racing and Front Row Motorsports v. NASCAR antitrust case.

While much of the past two months featured vigorous legal arguments between the two parties involved in the case, NASCAR and the newly assigned judged spent the end of last week issuing strongly worded legal rebukes against each other.

Federal judge Kenneth D. Bell of the Western District of North Carolina, whom replaced the originally assigned Frank D. Whitney, granted the preliminary injunction request made by 23XI and Front Row at the onset of the case.

This will force NASCAR into approving the transfer of charters purchased by the two teams from the shuttered Stewart-Haas Racing while also requiring the sanctioning body to recognize both organizations as if they held charters.

Remember, this case started when 13 of the 15 teams that compete in the Cup Series agreed to terms with NASCAR after two years of negotiating over renewing charter system that governs the economics and sporting regulations within the division.

The other two brought forth an antitrust lawsuit. 23XI is owned by sporting icon Michael Jordan and Cup Series racing veteran Denny Hamlin. Front Row is owned by national restaurant franchisee Bob Jenkins.

Anyway, NASCAR indicated that it would soon file an appeal with the fourth circuit court and asked Judge Bell to delay his ruling as to not force the two parties into an agreement that the sanctioning body says cannot be easily undone.

The judge partially agreed, asking the teams to file their response to NASCAR's opposition by 10 a.m. on Monday with Bell intending to rule on it before the end of day and the start of the holidays. Bell did not give NASCAR a chance to respond to the teams' response.

Should Bell grant the delay, called a stay, the order to approve the SHR charter transactions and the status of the teams as it relates to the governing documents will be held up until the Fourth Circuit of Appeals reviews the original decision.

But if Judge Bell denies the delay, his order from last week will remain in place through the appellate process, and 23XI Racing and Front Row Motorsports will have three charters each.

NASCAR strongly criticized the new judge last week, suggesting a 'misunderstanding' over how charters worked as it related to the law. NASCAR also took exception to the two teams adding the charter transaction ask to their preliminary injunction request in a response as opposed to the original filing.

Representing NASCAR, lead attorney Chris Yates wrote that his clients have been wronged by the court due to a 'procedural and substantive' error.

Judge Bell responded equally strongly, for one offering that both NASCAR and 23XI/Front Row 'passionately hold opposite positions with respect to time sensitive contracts and other business dealings.' Bell wrote that he 'did not enter the injunction lightly' and was adamant that he structured his order in a 'limited way' as it only applies to the 2025 season.

Bell said the order is not a multi-year biding agreement between the two disputing parties and just maintains the status quo from over the summer at which point the dispute began and lasting only until a resolution is reached on the matter.

The judge wants to reach a trail by the end of 2025 and before the start of the 2026 season, recognizing that time is of the essence.

The judge also rebutted NASCAR is saying the court has the power to 'unwind' 23XI and Front Row acquiring the SHR charters and can force them to be sold to NASCAR or another party approved by the sanctioning body should that become necessary.

Bell wrote that NASCAR and its representation effectively wasted time arguing semantics over the inclusion of the charter transfers into the injunctive request instead of fully making a legal case against it.

"Contrary to Defendants' suggestion," Bell wrote that he 'did not limit their position and evidence in any way,' and that NASCAR 'could have filed all the arguments and exhibits they presented in one day' so that he could rule on it holistically.

Instead, NASCAR asked the request to be stricken from the record. With that said, the judge issued the partial delay on the order out of respect for NASCAR's position.

"Nevertheless, the Court wants to ensure that it has a full opportunity to consider all of Defendants' proffered evidence and argument with respect to the transfer of the Stewart Haas Racing charters, if possible prior to the close of the transactions," Bell wrote.

These are the issues that will be decided on Monday and you can expect NASCAR to officially respond to whatever decision is made in how it appeals to the fourth circuit later in the week at some point around the Christmas holiday.

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