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NASCAR Clears Path for 23XI, Front Row to Race Amid Antitrust Fight

By  |  November 17, 2024

NASCAR has made a significant adjustment to its Open Team Agreement for 2025, removing a provision that would have restricted teams involved in antitrust litigation from competing in the NASCAR Cup Series. This change enables 23XI Racing and Front Row Motorsports to continue their legal challenge while also remaining eligible to race in the upcoming season. According to Sports Illustrated, the original provision would have prevented these teams from participating if they were actively pursuing legal action against NASCAR.

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    The litigation centers on the limitations placed by NASCAR on non-Chartered teams, a restriction both teams argue limits their competitiveness and market access. Jeffrey Kessler, attorney for both teams, issued a statement on the latest development, highlighting the importance of NASCAR’s revision. According to Kessler, both 23XI Racing and Front Row Motorsports are “pleased” with the updated Open Team Agreement, which he said allows the teams to pursue fairness in the sport while remaining on the track. However, Kessler also noted that the teams will move forward with an appeal to the U.S. Court of Appeals for the Fourth Circuit, seeking to compete as Chartered teams during the course of the lawsuit. Chartered status would guarantee each team a spot in every race, a valuable security for teams competing at the highest level of NASCAR.

    Related: Judge Denies NASCAR Teams’ Injunction Request in Antitrust Case

    “We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025,” Kessler said in a statement. He reiterated that his clients are committed to securing Chartered status to avoid “irreparable harm” and are motivated to pursue a fair racing landscape.

    The appeal follows the denial of a preliminary injunction by District Judge Frank D. Whitney on November 8, which would have allowed the two teams to operate as Chartered teams during the litigation. Per Sports Illustrated, 23XI Racing and Front Row Motorsports have requested an expedited appeal of this ruling, with NASCAR’s response due by Monday. If granted, the appeal could grant both teams provisional Chartered status, potentially impacting their 2025 season while litigation continues.

    23XI Racing, which is co-owned by NBA legend Michael Jordan and NASCAR driver Denny Hamlin, has established itself as a prominent player since its founding in 2021. Driver Tyler Reddick took home the NASCAR Cup Series Regular Season Championship in 2024 for the team, solidifying 23XI’s competitive edge. Meanwhile, Front Row Motorsports, owned by Yum! Brands franchisee Bob Jenkins, has been a NASCAR competitor since 2004, claiming a major victory at the 2021 Daytona 500 with Michael McDowell.

    Both teams have voiced their commitment to remaining in NASCAR while also pushing for reforms they believe will foster a more competitive and equitable environment.

    Source: Sports Illustrated