Another loss for NASCAR on Monday when Judge Kenneth D. Bell of the US District Court denied the series' request to delay the transfer of the Stewart-Haas Racing charter to Front Row Motorsports. The request was in response to last week's ruling, when Judge Bell had granted a preliminary injunction to 23XI Racing and Front Row Motorsports that will allow them to keep their charters, while the lawsuit is ongoing.
Earlier this year, FRM announced their intentions to purchase the No. 10 charter from SHR and while it was expected that 23XI would also purchase one of the SHR charters, they have not done so yet. Trackhouse Racing, which signed the 2025 Charter Agreement, purchased the third free SHR charter. NASCAR must now approve the charter transfer to Front Row Motorsports. 23XI hasn't formally asked to purchase the SHR charter yet like FRM has, so they will have to formally ask for it via the courts before it can be approved in a separate motion, but this isn't likely to be an issue based on recent rulings.
An unlawful Catch-22?
In Monday's ruling, Judge Bell also criticized the 'Catch-22' of NASCAR's Release clause in the 2025 Charter Agreement (which prohibits teams from bringing antitrust claims against the sport after signing). That part of the ruling read as follows: "Plaintiffs (23XI/FRM), or any other team that wanted to challenge NASCAR's conduct as an antitrust violation is (according to the Defendants) out in a classic 'Catch-22' -- the team must accept the 2025 Charter Agreement, including the Release that bars Plaintiffs' antitrust claims, but if it doesn't sign the Charter Agreement then it can't bring those same antitrust claims because it doesn't hold a charter."
The court went on to say that the Release is "likely to be found unlawful" and also pointed out that the uncertain approval of the SHR charter transfer to FRM was "based on Front Row’s unwillingness to drop this lawsuit and release their antitrust claims."
The judge disagreed with NASCAR's claim that they will suffer irreparable harm, while countering their assertion that handing over the SHR charters will force them into a long-term agreement with the teams that goes beyond the injunction by saying: “The court has the equitable power to require the sale of or take other action with respect to the SHR transferred charters as part of the final relief entered after trial.”
23XI and FRM reacted to the ruling with the following statement: "We welcome today's decision by Judge Bell to deny NASCAR's motion to stay, which will allow 23XI and Front Row Motorsports to compete as chartered teams in the 2025 season and enable Front Row Motorsports to complete their purchase of a third charter from Stewart-Haas Racing. Today's decision represents an important step in advancing my clients' case against NASCAR and their monopolistic practices, while protecting their drivers, race teams, sponsors and the fan experience. We are confident in the strength of our case and will continue this fight for a more competitive and fair sport for everyone involved in the coming year."
A trial date for the actual antitrust lawsuit has been set, but remains a year away, in December 2025.
