On Friday afternoon, as NASCAR President Steve Phelps and Steve O’Donnell were in the middle of the State of the Sport Address at Phoenix Raceway, Judge Frank D. Whitney made his decision after days of deliberating whether 23XI Racing and Front Row Motorsports would be granted a preliminary injunction ahead of their upcoming antitrust lawsuit against NASCAR.
According to the conclusion issued in the court documents, Judge Whitney determined that, “Plaintiffs have not met their burden as required for a preliminary injunction. Should circumstances change, Plaintiffs’ may file a renewed motion for preliminary injunction. Therefore, the Court denies Plaintiffs’ motion without prejudice.”
The reasoning for the Motion for Preliminary Injunction was to allow 23XI Racing and Front Row Motorsports to compete either as an Open Car in the NASCAR Cup Series or remain covered under the 2025 Charter Agreement without signing the provision which waives the teams’ right to file an antitrust lawsuit against NASCAR.
As NASCAR requires “Open” teams and Chartered teams to sign a provision negating their right to sue the sanctioning body, there is a chance the teams will be forced to make a decision between continuing the lawsuit or continuing racing in the NASCAR Cup Series next season.
While Judge Whitney did not grant the preliminary injunction, the Court did indicate the intention to fast track the case as defined by the Court’s standing orders.
Following Judge Whitney’s ruling, Jeffrey Kessler, the attorney for the race teams issued a statement indicating that they plan to appeal.
“We are pleased with the court’s decision to expedite discovery and fast track the schedule in our case against NASCAR,” Kessler said. “Although we are disappointed that the preliminary injunction was denied without prejudice and as premature, which we intend to appeal, this denial has no bearing on the merits of our case. My Clients will move forward to race in 2025 and continue to fight for a more fair and equitable system in NASCAR that complies with antitrust law.”
The Court has directed the defendants (NASCAR) to file an answer by the already-established responsive pleading deadline of December 2, 2024, even if it is accompanied by a motion to dismiss.
Both parties have also been directed by the Court to conduct the initial attorneys conference as soon as possible after the responsive pleading is filed and to file the Rule 26(f) report with a deadline of December 16, 2024 in order for a case management order can promptly be issued.
The first point in the antitrust lawsuit between the race teams and NASCAR goes to NASCAR and their attorney Christopher Yates.
