Tensions soar as NASCAR files a shock appeal against 23XI and FRM over “misuse of judicial power”

NASCAR has dropped a bombshell by appealing Judge Kenneth Bell's verdict on granting the injunction to 23XI Racing and Front Row Motorsports. The defendants challenged the judgment an hour before the 2025 Daytona 500 qualifying began.

The heated legal battle ensued from the fresh charter agreement the officials sent to the teams, instigating them to sign it before the 2024 playoff opener at the Atlanta Motor Speedway. While 13 outfits penned their approval, Michael Jordan and Denny Hamlin's 23XI and Bob Jenkins' FRM denied it.

They argued that the sanctioning body didn't cater to their needs and that the two-year negotiation was in ruins. Hence, the holdouts sued NASCAR and CEO Jim France for engaging in antitrust and monopolistic activities.

Frank D Whitney was the initial judge allocated to the case. He ruled in favor of NASCAR, denying the preliminary injunction to the plaintiffs to race as a chartered team in 2025 while the lawsuit wades through its due course. However, after Judge Kenneth Bell took over, he slammed the defendants for exploiting its stature in stock car racing, overruling the previous judgment and awarding the preliminary injunction for the 2025 season.

The most recent hearing was on January 10, when the US District Court judge denied NASCAR's motion to scrape off the antitrust case. The judge also rejected the defendant's plea to get a signed bond by the plaintiffs that would compensate them if 23XI and FRM were to lose the case.

However, just an hour before the Daytona 500 weekend began in full swing, NASCAR decided to appeal the judgment, on the ground of "misuse of judicial power."

"The district court’s injunction orders flout federal antitrust law; misapply the established rules governing the use of preliminary injunctions; ignore unrebutted, legally significant evidence; and have sweeping implications for NASCAR’s 2025 Cup Series season These injunctions misuse the judicial power to force NASCAR to treat its litigation adversaries as its business partners and confidants, undermining the mutual trust that has fueled NASCAR’s growth and success," NASCAR wrote (via AP News).

The plaintiffs have not responded thus far to NASCAR's shock move before the crown jewel race.

Denny Hamlin opines what's it like to race with the embroiling lawsuit against NASCAR

Denny Hamlin is one of the most polarizing figures in the high-octane sport, renowned for his no-nonsense and straightforward attitude about the developments in motorsport. Aside from piloting the #11 Toyota Camry for Joe Gibbs Racing, he is actively involved in his co-owned outfit's legal drama.

Ahead of the first points-paying race of the 2025 season, the Daytona 500, Bob Pockrass asked Hamlin whether the lawsuit would impact his performance. The JGR driver opined that an on-track game is a cumulation of many factors and that the lawsuit being an off-track thing -won't interfere with his performance.

"I think your performance on track is so indicative of the speed of your cars, how good is your pit crew, how well do you do as a driver — not anything that happens off the racetrack. So, I don’t see it being a factor at all,” Hamlin said.

As the lawsuit takes its course, Denny Hamlin is gearing up for a fourth Daytona 500 win and a first since the advent of the NextGen cars.