Judicial Decision Impacts 23XI Racing and Front Row Motorsports
A federal judge issued a ruling that could have significant repercussions in the world of motorsports. On Thursday, the judge rejected the request of 23XI Racing and Front Row Motorsports to continue competing with their licenses while they are in a legal battle with NASCAR. This decision means that their six vehicles will compete as open entries this weekend in Dover, next week in Indianapolis, and possibly for longer. The teams argue that this situation could jeopardize their economic viability. Judge Kenneth Bell denied the teams’ request for a temporary restraining order, indicating that they will be able to participate in the races in the coming weeks and that they will not lose their drivers or sponsors before a decision is made on a preliminary injunction. Judge Bell left open the possibility of reconsidering his decision if circumstances change in the next two weeks. After this weekend, the affected cars may need to be classified by speed if 41 participants register, a possibility that now exists due to the opening of places.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 to reject NASCAR’s license extension offer.“We are disappointed that the court refused to grant 23XI and Front Row Motorsports a temporary restraining order to allow the teams to continue competing as licensed teams,” stated Jeffrey Kessler, attorney for the teams. “We remain confident that our motion 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 1st, but the two teams are fighting to be recognized as license holders for the current season, which has 16 races remaining. A license guarantees a place in the field of 40 each week, in addition to a base amount of money paid weekly.“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 stated. “We are confident in the merits of our case and the teams remain focused on competing this weekend and continuing their momentum towards the playoffs.”
Jeffrey Kessler
Jordan and FRM owner Bob Jenkins obtained an injunction 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 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 not 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 field for upcoming races could negatively affect their competitive position, including their ability to earn a place in the playoffs. Once again, legitimate, potentially irreparable harm. However, similar to the sale of licenses, NASCAR represents to the court that all of the plaintiffs’ cars will be classified (if they choose to compete) for the races in Dover and Indianapolis that will take place in the next 14 days.” Securing a spot in the race won’t be a problem this weekend in Dover, as fewer than the maximum 40 cars have entered. However, if 41 cars show up at any point this season, some slow one will be sent home, which means a loss of income and a missed opportunity to earn points in the standings. Reddick was last year’s regular season champion and competed for the Cup Series championship in the season finale. However, none of the six drivers affected by the court decision are assured a place in this year’s playoffs.
