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23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR and CEO Jim France on October 2. Despite refusing to sign the new charter deal, both teams are expected to expand to three-car operations next season, all while pursuing this litigation.
Both teams plan on applying for a preliminary injunction, allowing them to compete under the 2025 charter agreement next season. The Federal Court will first review the injunction, which NASCAR may agree to avoid complications. Even if the teams lose the injunction, they still plan to continue racing.
Fox Sports reporter Bob Pockrass suggested that NASCAR is expected to file a motion to dismiss the lawsuit. A motion is a formal request asking a judge to make a ruling. In this case, CEO Jim France would argue that even if all the claims made by 23XI and FRM are true, they do not violate antitrust laws. The judge would then determine if the lawsuit has merit to proceed.
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Pockrass further noted that if the motion to dismiss is denied, the lawsuit would proceed to the discovery phase. At this stage, both sides can request evidence from each other and interview witnesses, which would force NASCAR to open its books and disclose its financial statements.
The charter ownership of 23XI and FRM could become convoluted if NASCAR doesn’t agree to the preliminary injunction. If the sanctioning body decides to sell the charters next season and 23XI Racing and Front Row Motorsports win the lawsuit, it would create quite a mess.
Regardless of the outcome of the injunction, 23XI Racing and Front Row Motorsports remain determined to continue racing next season, while pressing ahead with their plans to expand into three-car organizations.
23XI lawyer addresses potential on-track retribution from NASCAR
23XI Racing and Front Row Motorsports have hired the services of Jeffrey Kessler, a leading antitrust attorney, who has spearheaded revolutionary changes in many sports leagues. Kessler was asked about the possibility of retribution from NASCAR for 23XI and FRM drivers.
Kessler explained that he has been in similar situations many times before and emphasized that the sanctioning body is likely to be cautious about taking any retributory action against the teams involved in the lawsuit. He asserted that if such actions were to occur, they would be immediately addressed.
"I spent my career where we're representing plaintiffs who have to continue to do business with or be employed by the people we're suing. And I will tell you that usually on the other side, there will be counsel who will caution the other side to not take retribution, to not treat the parties suing unfairly, because if that were to happen, it will be immediately addressed." Kessler was quoted as saying by Fox Sports.com
Tyler Reddick and 23XI Racing co-owner Denny Hamlin are in the playoffs contending for the championship this season. Every on-track penalty for the drivers will be under the spotlight in the coming weeks.
