Judicial Decision Impacts NASCAR Teams: 23XI Racing and Front Row Motorsports
A federal judge has rejected the request from 23XI Racing and Front Row Motorsports to continue racing with their licenses while they face NASCAR in court. This decision means that their six cars will participate as open entries this weekend in Dover, next week in Indianapolis, and possibly longer, which, according to the teams, could put them at risk of bankruptcy. U.S. District Judge Kenneth Bell denied the teams’ request for a temporary restraining order. The judge argued that the teams will be able to participate in the races in the coming weeks and that they will not lose their drivers or sponsors before his decision on a preliminary injunction. Bell left open the possibility of reconsidering his decision if circumstances change in the next two weeks. After this weekend, the affected cars might need to be classified by speed if 41 entries are registered, a possibility now that places to compete have opened.23XI, co-owned by NBA legend Michael Jordan, and FRM filed a federal lawsuit against NASCAR last year after being the only two organizations out of 15 that rejected NASCAR’s license extension offer.“We are disappointed that the court declined to grant 23XI and Front Row Motorsports a temporary restraining order to allow the teams to continue competing as licensed teams,” said Jeffrey Kessler, attorney for the teams. “We are confident that our request for a preliminary injunction is legally justified and necessary, and we look forward to the court’s full review.”
Jeffrey Kessler
The trial is scheduled for December 1, but the two teams are fighting to be recognized as license holders for the current season, which has 16 races remaining. A license guarantees one of the 40 grid positions each week, in addition to a base amount of money paid each week. Jordan and FRM owner Bob Jenkins obtained a court order to recognize 23XI and FRM as license holders for the season, but the decision was overturned on appeal earlier this month, returning the case to Bell. Denny Hamlin, three-time Daytona 500 winner, co-owns 23XI with Jordan and stated that they were prepared to send Tyler Reddick, Bubba Wallace, and Riley Herbst to the track each week as open teams. They requested the restraining order on Monday, alleging that through discovery they learned that NASCAR planned to immediately begin the process of selling the six licenses, which would put “the plaintiffs in irreparable danger of never recovering their licenses and going bankrupt.” “This is a fair and significant fear; however, NASCAR has agreed that ‘it will not sell any licenses before the court can rule on the plaintiffs’ request for a restraining order,'” Ball wrote. “Similarly, the plaintiffs fear that denying them guaranteed entry to the grid for the upcoming races could negatively affect their competitive position, including their ability to earn a place in the playoffs. Again, legitimate, potentially irreparable damage. However, similar to the sale of licenses, NASCAR represents to the court that all the plaintiffs’ cars will be classified (if they choose to compete) for the races in Dover and Indianapolis that will take place over the next 14 days.”“We made the decision to file this lawsuit to challenge NASCAR’s monopolistic practices and intimidation tactics, and we are not going to allow them to push our teams, or others, out of the sport they love,” Kessler said. “We are confident in the merits of our case and the teams remain focused on competing this weekend and continuing their momentum for the playoffs.”
Jeffrey Kessler
Making the grid won’t be a problem this weekend in Dover, as less than the maximum 40 cars have entered. However, if 41 cars show up at any point this season, someone slow will be sent home and that means loss of income and a missed opportunity to earn points in the standings.
Reddick was the regular season champion last year and competed for the Cup Series championship in the season finale. But none of the six drivers affected by the court decision are qualified for this year’s playoffs.
