NASCAR appeal calls out those who ‘undermine’ their brand

The drama continues to unfold in this latest chapter of the contentious lawsuit where 23XI Racing and Front Row Motorsports sues NASCAR over the series’ 2025 Charter Agreement. 

Wednesday evening, the series filed a 68-page brief with the Fourth Circuit Court of Appeals, calling for a complete reversal of the preliminary injunction granted to the teams in December. The aforementioned injunction allowed for both 23XI and FRM to compete with charters while the lawsuit is ongoing, without having to adhere to the disputed portions of the 2025 Charter Agreement. 

NASCAR used stern and pointed language, claiming “these injunctions misuse the judicial power to force NASCAR to treat its litigation adversaries as its business partners and confidants, undermining the mutual trust that has fueled NASCAR’s growth and success.” The series believes the injunction was granted in error, stating that the orders both “flout federal antitrust law” and “misapply the established rules governing the use of preliminary injunctions.”

Punchy language

Within the filing, NASCAR even took direct aim at the two teams, saying that the sanctioning body “would prefer to extend the perks of the 2025 Charter to owners committed to enhancing NASCAR’s competitiveness with other sports for fans, sponsors, and media dollars – rather than owners that undermine NASCAR’s brand and seek advantages over other owners in Charter terms.”

It also points out that the new agreement is a “substantial increase” in money from what teams received in the original 2016 Charter Agreement. On that same note, they discussed how they had already altered race purses in preparation for having 32 chartered teams instead of 36, due to the teams’ refusal to sign the agreement. By allowing them to now compete with charters anyway, NASCAR claims 23XI and FRM “have hit the jackpot.”

Not an unlawful monopoly?

NASCAR also pushed back on the notion that it operates as an unlawful monopoly, citing IndyCar, Formula 1, IMSA, NHRA, and several other racing divisions as direct competitors. They go on to say that the series competes with major stick-and-ball sports for fan attention, sponsors, and broadcast coverage.  

“Even after forming Cup Series teams, motorsports organizations like Plaintiffs can and do offer their services and assets to other leagues if NASCAR’s terms are not competitive. For instance, Team Penske a professional auto racing organization founded by former Cup Series driver Roger Penske- routinely supplies racing teams not only to NASCAR, but also to other racing circuits like IndyCar.”

The lawsuit doesn’t go to trial until December of this year, but oral arguments regarding NASCAR’s appeal will be heard in May.