NASCAR's self-drafted term is "proving to be a real thorn in its side" as per prominent influencer

NASCAR influencer Eric Estepp has said that one of the sanctioning body's charter clauses has backfired. The reaction stemmed from Judge Kenneth Bell's criticism of the stock car racing association's monopolizing terms.

On December 23, the federal judge rejected NASCAR's emergency motion to stay a preliminary injunction order in favor of Front Row Motorsports in 23XI Racing and its case against the Association, allowing it to complete its charter purchase for 2025 from Stewart-Haas Racing.

The Judge also criticized the sport's governing body for exploiting its monopoly through wordplay in the charter agreement. According to him, the defendant drafted such a clause in the proposal, preventing teams from suing it if they had signed the charter. At the same time, the holdouts were barred from instigating a lawsuit as they weren't part of the deal. Thus, it depicts a two-way roadblock for every Cup Series team - signed or unsigned - that wants to sue.

However, the clause proved to be a "thorn in the defendant's side". The Judge slammed it for trapping the teams in an impossible situation, deeming the clause violative of law and public interest. Estepp opined on Judge Bell's judgment and concluded that the sanctioning body's attempt to tame the Cup Series teams had backfired:

"Judge Kenneth Bell honed in on the release language, the 'You can't sue us' clause in NASCAR's 2025 charter agreement. Basically, the judge calls out NASCAR for putting teams in an impossible situation. This is just the opinion of one federal judge. But that clause is proving to be a real thorn in NASCAR's side." [04:04]

Judge Bell allowed only FRM to complete its charter purchase, barring 23XI Racing as it didn't file for the transfer in the original motion.

---

NASCAR agreed to the SHR charter sale to 23XI before the plaintiffs filed a separate motion

While the federal court ruled that 23XI can't exercise the same right as FRM, it allowed the team to file a separate motion for it to pass. However, since Judge Kenneth Bell has succeeded Judge Frank Whitney in the case, decisions have landed in the plaintiff's court.

Thus, the sanctioning body believed that 23XI would get the charter purchase approval nonetheless. As a result, even before the plaintiff filed a separate plea, NASCAR permitted the charter sale. However, it posted the condition that 23XI can't use this leeway as a ground in future arguments.

The defendant expressed concern about Judge Bell's preliminary injunction ruling, saying it would give 23XI and FRM a 7-to-14-year guarantee to race as chartered teams. But the Judge reiterated that if the plaintiffs lost the legal battle, he would instruct them to lease or sell the charters.

The Stock Car Association's proposed charter is from 2025 to 2031, the same duration observed by its new $7.7 billion media rights deal. However, the defendant has kept a provision to extend the guarantees to another seven years, as and when it deems fit.