A judge denied a preliminary injunction request by 23XI Racing and Front Row Motorsports to have charter status for the rest of the season.
U.S. District Court Judge Kenneth D. Bell issued the order Wednesday.
What does the order mean?
23XI Racing and Front Row Motorsports will continue to operate as open teams the rest of the season. They will receive less money than charter teams but are not in danger of missing any races after a recent rule change by NASCAR.
So 23XI Racing’s Tyler Reddick and Bubba Wallace will continue to race for a championship. It also means that 23XI Racing’s Riley Herbst and Front Row Motorsports’ Todd Gilliland, Zane Smith and Noah Gragson will continue to race this season without worry of not making a race.
Why did the judge rule against the teams?
Part of having a preliminary injunction granted is proving irreparable harm.
Recent action by NASCAR took that element away, according to the judge.
NASCAR announced a rule change in late July that guarantees that the six teams from 23XI Racing and Front Row Motorsports will not be in danger of failing to make a race the rest of the season.
On Aug. 29, a day after a contentious hearing about the preliminary injunction, NASCAR submitted a document to the court stating that it would not “issue, sell, convey, or lease” the six disputed charters for this season and through the upcoming trial.
The teams argued that wasn’t good enough, stating the harm they would receive by not having charter status the rest of this season.
The teams stated in court documents this week that they would “suffer irreparable harm if they are not granted charter rights for the remainder of this season because of the risk of breach claims from their irreplaceable drivers and loss of sponsors in the absence of charter rights.”
What did the judge state?
Judge Bell wrote: “First, NASCAR has changed its “Open” racing rules in a way that guarantees that Plaintiffs will be able to fully participate in each of the remaining Cup Series races. … the loss of the “fixed” Charter payouts and the uncertainty of ongoing relationships with drivers and sponsors can either be compensated with money damages at trial or is simply inherent in the risks associated with the lawsuit.
“What will happen for the 2026 racing season will remain unsettled for everyone involved in the NASCAR Cup Series until after trial. Therefore, there is no irreparable harm with respect to the loss of “Charter rights” for the remainder of the 2025 Cup Series.”
Judge Bell also wrote: “With respect to the sale / transfer / etc. of additional Charters pending a ruling on the merits, Plaintiffs (23XI Racing and Front Row Motorsports) claim that the transfer of the Charter spots Plaintiffs had been using prior to this dispute would “destroy their businesses” under the current Charter Agreement regime. This is a fair and significant fear; however, NASCAR has agreed that it will in effect maintain the status quo with respect to those earlier Charter spots by limiting the number of new Charters issued to four.
“The 2025 Charter Agreements give NASCAR the authority to create up to 40 Charter Members so temporarily adding Charters 37-40 will not irreparably harm Plaintiffs.
“In other words, so long as the disputed Charters are available for the Court to potentially use as part of the final relief granted to Plaintiffs if they are successful at trial, then Plaintiffs are not irreparably harmed and no preliminary injunction is necessary or, indeed, permitted.”
Reaction from the teams
Here is what Jeffrey Kessler, attorney for 23XI Racing and Front Row Motorsports, said in a statement after the judge’s order Wednesday:
“We are grateful that Judge Bell has made clear that the status quo is being maintained — protecting my clients’ rights to regain their charters if they prevail at trial and ensuring their ability to continue racing through the 2025 season based on NASCAR’s commitments.
“Equally important, Judge Bell reaffirmed his broad power to order meaningful changes in NASCAR should we succeed, so that teams, drivers, sponsors, and fans can benefit from a sport positioned for long-term growth and restored competition. We are ready to present our case at trial in December.”
Reaction from NASCAR
Here is NASCAR’s statement after Wednesday’s ruling:
“We welcome the court’s decision, which brings much-needed clarity to the remainder of the 2025 NASCAR season. For nearly 80 years, NASCAR and the France family have championed a bold vision by taking many personal and financial risks to build a sport that fuels livelihoods, inspires generations, and delivers world-class competition. That commitment remains unwavering, and we will continue to defend the integrity of NASCAR and preserve the values that have guided its growth.”
“To the fans: We won’t let this lawsuit distract from what matters most — delivering the unforgettable moments you’ve come to expect from our great sport and crowning the next NASCAR Cup Series champion on November 2.”
What’s next?
The case is scheduled for a jury trial beginning Dec. 1, provided there is no settlement between the two sides.
