NASCAR will file an appeal of the preliminary injunction that was granted to 23XI Racing and Front Row Motorsports.
But in addition to the appeal, NASCAR has filed additional motions pertaining to the injunction. The first is asking for an emergency motion for partial stay of injunction pending the appeal. The second is for the teams to post an injunction bond.
In asking for the stay pending appeal, NASCAR claimed they “are likely to succeed on appeal” and “suffer irreparable harm without a stay of the Court’s decision,” while the teams “would not face substantial harm because the continued enforcement of a partial stay would address each of Plaintiffs’ irreparable harm allegations,” and lastly, “the public interest supports a partial stay, as this Court’s preliminary injunction forces NASCAR into unwanted contractual relationship with Plaintiffs.”
23XI Racing and Front Row Motorsports were granted the preliminary injunction to race as charter teams Dec. 18 while stating the release clause is not enforceable. The ruling also said NASCAR could not deny the purchase of a charter for each team from Stewart-Haas Racing, which would be used for the third team each organization is adding.
In addressing the belief that they are likely to succeed on appeal, NASCAR states that it was never given a chance to offer the issues around those purchases and the teams never included the issues in their complaint. NASCAR also states that letting the teams field their two cars without the release clause contradicts Fourth Circuit precedent.
“And this Court’s conclusion that the Charter’s release provision is likely unlawful stems from a misunderstanding of that provision, which does not operate prospectively – as confirmed by Plaintiffs’ counsel. Numerous cases confirm that retrospective releases of antitrust claims do not, by themselves, constitute Sherman Act violations.”
The claim of how NASCAR will suffer irreparable harm is connected to having to approve the charter sales between the teams and Stewart-Haas Racing. By doing this, it will not be limited to only the 2025 season, as the preliminary injunction is. If the two sides do not come to a resolution on the lawsuit, the trial will be held before the 2026 season.