Concerning intimations from 23XI’s $49B worth sponsor and FRM’s ‘largest’ supporter surface amid the ‘risky’ lawsuit gamble

Concerns regarding sponsorship jeopardy have surfaced amid 23XI Racing and Front Row Motorsports' lawsuit against NASCAR. A few hours after Judge Kenneth D Bell ruled in favor of the Cup teams, motorsports insider Adam Stern shared an excerpt of the plaintiffs' document, exhibiting the sponsors' dwindling emotions about continuing the partnership.

On December 18, the federal court awarded the preliminary injunction to 23XI and FRM to race as chartered teams in 2025. The Judge also denied NASCAR's release clause which prevented the teams from completing the charter purchase from Stewart-Haas Racing.

Though NASCAR has filed a partial stay motion and will appeal the entire decision, the plaintiffs are in a victorious spot at the moment, a big morale boost for the sponsors. However, things took a disturbing turn after Michael Jordan, Denny Hamlin, and Bob Jenkins dragged NASCAR into court on October 2.

A month after the lawsuit, 23XI's longtime sponsor, Monster Energy, which has a market capitalization of $49 billion (as per Forbes), intimated that it was delaying the 'Ultimate Race Weekend' deal and could terminate the entire contract amid the 'risk' of not participating in the Daytona 500, failed retention of Tyler Reddick, and the loss due to not having the charter.

Front Row Motorsports' 'largest' sponsor, Love's Travel Stops, which generated a staggering $24 billion in 2024, also took the same ground as Monster Energy, informing FRM of an uncertain future amid questionable capability to fulfill the 'contractual obligations' during the active lawsuit.

It's worth mentioning that both organizations will field a three-car operation in 2025, and backing off of primary sponsors like Monster Energy and Love's Travel Stops could cause irreparable harm to the team.

If the sponsors were to leave 23XI and FRM, it would severely impact the organization's day-to-day operations, which depend on sponsors' money. Moreover, with fewer dollars in their pockets, the teams could potentially lose their drivers.

“Monster Energy informed 23XI that it decided “to delay [its] ‘Ultimate Race Weekend’ Consumer Promotion to a later date” because “the uncertainty around 23XI, Tyler, and the relationship with NASCAR for the start of the season” makes it “just too big of a risk,” 23XI's excerpt of the court document reads via Adam Stern on X.

"To the same effect, Front Row's largest sponsor, Love's Travel Stops, emailed the team on Nov 22, 2024, stating its concern about Front Row's "ability to meet contractual obligations next season," FRM's excerpt of the court document reads.

NASCAR has filed a partial motion, asking teams to submit an injunction bond to nullify NASCAR if 23XI and FRM take money from the prize purse but lose the case later, and an emergency motion to hold the injunction verdict until the appeal is heard.

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Denny Hamlin reacts to 23XI and FRM's momentous win over NASCAR

23XI and FRM sued NASCAR for anti-competitive practices. But their biggest ask was to let them race as chartered teams in 2025. Frank D Whitney, the originally assigned Judge to the case, who is connected to NASCAR's counsel, relieved himself from the case without concrete grounds, after denying the teams' preliminary injunction request.

Nonetheless, the teams refiled the motion with new circumstances, including the 20 December deadline of the charter transfer from SHR and emails from their drivers, exhibiting that teams would breach the contract if they couldn't provide them with a chartered car.

The refiled motion convinced Judge Kenneth D Bell and thus, his decision favored the plaintiffs. Denny Hamlin couldn't hold back his victorious emotions, dropping a two-word reaction to his offseason triumph.

"YESSSSSSS!!!!!!!" Hamlin Tweeted.

NASCAR expressed their stay motion pending appeal is warranted because they believe they are 'likely to succeed,' and will suffer 'irreparable harm without a stay,' Further, the 'plaintiffs would not face substantial harm,' and the 'public interest supports a partial stay.'