The U.S. Court of Appeals for the Fourth Circuit ruled against 23XI Racing and Front Row Motorsports (FRM), denying their request for a preliminary injunction to operate as chartered teams in NASCAR. The teams had filed a lawsuit claiming that the sanctioning body violated antitrust laws by requiring them to release claims as a condition for participating in the Cup Series. Initially granted by a lower court, the injunction was overturned by the appellate judges, who found no legal basis for the teams’ claims.
As a result of the ruling, both teams face the possibility of losing their existing charters, which would force them to compete as open entries in upcoming races. While it’s unlikely that this would prevent their drivers from qualifying for races, it would significantly impact their financial standing, as chartered teams receive a larger share of purse and point fund money. The teams have 14 days to petition for a rehearing, but if they fail, they could be required to race without charters starting with the Atlanta race weekend.
In response to the ruling, 23XI and FRM expressed disappointment but remain optimistic about their case, which is set for trial in December. They aim to challenge what they view as anti-competitive practices in NASCAR and are committed to racing throughout the season while seeking a fairer economic system in the sport.
