Insider breaks down how ‘interested’ teams can sue NASCAR despite the release of charter terms being ‘unlawful’

NASCAR insider Bob Pockrass has explained how interested Cup Series teams, who have already given its charter agreement approval, can sue the sanctioning body for anti-competitive practices. This comes after 23XI and FRM won the preliminary injunction case even though the previous Judge, Frank D Whitney, dismissed the motion earlier.

Over two months after filing a lawsuit against NASCAR and its CEO Jim France, 23XI and FRM got a big breakthrough, courtesy of Judge Kenneth D. Bell's overruling judgment. The plaintiffs refiled the preliminary injunction motion with new circumstances which convinced the Judge to rule against NASCAR.

In the new evidence, 23XI and FRM produced email copies from their drivers -Tyler Reddick, Noah Gragson, Riley Herbst, and more, posing it as immediate justification of the irreparable harm if the injunction weren't granted. Moreover, the Judge instructed the sanctioning body to allow SHR's charter transfer, adding nearly $60 million to the shutdown team's beneficiary's bank accounts.

That being said, Bob Pockrass was asked if the landmark ruling would open the path for other teams to sue NASCAR, considering that 13 teams already signed the agreement which has the lawsuit prevention clause. Pockrass explained that even though releasing the condition would be 'unlawful,' teams can 'potentially' file a brief as the clause won't be deemed the final ruling.

"They could but while judge ruled that release of claims clause likely would be unlawful, that doesn't mean that would be final ruling. Also the injunction is just thru 2025, not for full length of charter deal. If a team wanted, potentially could file brief as interested party."

It's worth mentioning that 23XI and FRM sued NASCAR when their 2024 charter was still valid. And just like the 2025 charter, the previous agreement contained the same clause that prohibited teams from suing the sanctioning body.

NASCAR is set to appeal Judge Kenneth's verdict as they have already filed additional motions

The verdict's overruling was sweet for 23XI and FRM but bitter for NASCAR. The latter had no intention of letting the plaintiff race as chartered teams in 2025, but they have to, until at least the end of the 2025 season.

However, the defendants will file an appeal against the decision and have already filed additional motions for an 'emergency' partial stay of the appeal. They asked the teams for an injunction bond, holding them liable to pay back according to the prize received, if they lose the case.

The defendants expressed four broad reasons why their appeal is warranted - 'They are likely to succeed,' would 'suffer irreparable harm' if preliminary injunction stays granted, the teams won't 'face substantial harm,' and the 'public interest supports partial stay.'

According to the latest ruling, 23XI and FRM will sign a new charter agreement, which was omitted previously because teams believed they couldn't sign a fresh agreement and sue the sanctioning body at the same time.