NASCAR initiates a big ‘emergency’ case against 23XI and FRM as the federal court ‘forced’ the sanctioning body into forming ‘unwanted’ relationships

Following the court's approval for 23XI Racing and Front Row Motorsports' preliminary injunction, NASCAR filed a motion described as an 'emergency.' The league believes the approved temporary charter agreement would force it into 'unwanted' relationships in the coming years.

The emergency motion for a partial stay of injunction refers to the Stewart-Haas Racing charter deals 23XI and FRM opt to purchase. While the preliminary injunction is only ruled for the 2025 season, the charter sales “will effectively force NASCAR into a seven- to 14-year contractual relationship” with the teams.

The league argued that undoing the charter transfer could be difficult, if not impossible, which can be a case of irreparable harm. Part of it is disclosing confidential charter information to 23XI Racing and Front Row Motorsports while the lawsuit is ongoing.

According to NASCAR, this motion must be handled as an emergency considering the teams indicated the charter purchases must be closed by December 20.

The stay pending appeal is among the defendant's latest responses to the legal battle along with appealing the preliminary injunction ruling.

Per Kelly Crandall on X (formerly Twitter), the NASCAR Insider wrote:

"NASCAR will appeal the preliminary injunction ruling for 23XI Racing and Front Row Motorsports. It will also be filing for a partial stay of injunction pending the appeal."

The defendant pointed out several reasons for the stay pending appeal, saying:

"As set forth more fully in the accompanying Memorandum, such a stay pending appeal is warranted because: (1) Defendants are likely to succeed on appeal, (2) NASCAR will suffer irreparable harm without a stay of the Court’s decision, (3) Plaintiffs would not face substantial harm because the continued enforcement of a partial stay would address each of Plaintiffs’ irreparable harm allegations, and (4) the public interest supports a partial stay, as this Court’s preliminary injunction forces NASCAR into unwanted contractual relationships with Plaintiffs."

In addition to the said motions, NASCAR has filed for the plaintiffs to post an injunction bond. The bond would ensure prize money if the league wins the case, though the amount was undisclosed.

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NASCAR veteran reacts to 23XI/FRM's 'monumental win' against NASCAR

Former NASCAR driver Kenny Wallace shared his thoughts on the granted preliminary injunction for 23XI Racing and Front Row Motorsports. He believes it was a 'monumental win' considering the league never lost a major legal case before.

In an X post via the "Coffee with Kenny" show, Wallace said:

"I do want to be very clear—this was a monumental, monumental win for 23XI and Front Row Motorsports only for 2025... Judge Kenneth Bell said 23XI and Front Row have won their preliminary injunction only for 2025." [08:03]

He added:

"NASCAR has friends in Washington, D.C. This is my opinion: when NASCAR goes to do something big, they’re going to make sure they’re right. December 18th, 2024—NASCAR lost its first huge court case. A big one, not a little one, a big one. [10:20]

While waiting for the developments of NASCAR's latest filed motions, 23XI Racing and Front Row Motorsports are set to compete as chartered entities in 2025. The teams look to expand to three chartered cars with charters from Stewart-Haas Racing.