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23XI and FRM Appeal Court Ruling Claiming It Creates Dangerous Legal Precedent
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Highlights
- Fourth Circuit ruled for NASCAR, overturning injunction on June 5, 2025.
- 23XI and FRM charters risk revocation before month-end without injunction.
- Teams filed rehearing petition on June 20, led by attorney Jeffrey Kessler.
- Trial scheduled for December to decide on antitrust lawsuit merits.
- Loss could force teams to race as unsecured open entries.
- NASCAR filed a counter-lawsuit complicating the ongoing legal battle.
The legal battle between 23XI Racing and Front Row Motorsports (FRM) against NASCAR continues to intensify, with both teams now seeking a rehearing after a major setback. On June 5, 2025, the U.S. Court of Appeals for the Fourth Circuit ruled in favor of NASCAR, overturning a previous injunction.
This ruling, if it stands, could result in all three charters held by 23XI and FRM being revoked before the end of the month. Such a loss would have immediate financial and competitive consequences for both organizations, each fielding multiple cars in the NASCAR Cup Series.
If the decision is upheld, 23XI and FRM could lose all their charters within weeks, leaving them without guaranteed race entries or associated financial security.
At the heart of the dispute is an antitrust lawsuit filed by 23XI and FRM, arguing that the charter agreement used by NASCAR contains release language that shields the company from legal challenges. The preliminary injunction had allowed both teams to compete as chartered entities throughout the legal proceedings.
With the recent court decision, that protection no longer applies, raising the stakes as the teams fight to remain in the series with guaranteed spots and revenue.
Jeffrey Kessler, lead attorney representing 23XI and FRM, announced that a formal petition was filed on June 20, calling for a rehearing before the full court. He stated that the panel’s previous decision did not address the merits of the case but instead focused on a narrow legal question.
Kessler warned that if this decision is upheld, it sets a “dangerous precedent,” potentially allowing monopoly holders in any industry to avoid lawsuits by simply requiring restrictive language in business agreements. He maintains that NASCAR’s actions limit competition and that the case is aimed at making the sport fairer for all participants.
“You can’t have your cake and eat it too,” remarked one judge, highlighting that teams want the privileges of charter status but object to certain contractual terms.
During court proceedings, Kessler faced tough questions, with judges expressing skepticism about his arguments. They highlighted the difficulty in allowing teams to benefit from the current charter agreement while attacking some of its clauses.
The clock is now ticking for 23XI Racing—co-owned by Denny Hamlin and basketball legend Michael Jordan—and Front Row Motorsports, as the next loss in court could see them stripped of all charters within weeks. If this happens, both teams would need to compete as open entries, which lack the financial security and race guarantees provided by charters.
NASCAR has also launched a counter-lawsuit, adding more complexity to the ongoing conflict.
A trial for the antitrust lawsuit is scheduled for December and the outcome may reshape the future of NASCAR and its charter system.
Until then, 23XI and FRM are pressing their appeal in hope of at least maintaining their current competitive status while the legal process unfolds.
The outcome will shape not only the future of these teams but could also have a profound and lasting impact on how NASCAR governs its top series.
Daniel Miller reports on Formula 1 Grand Prix weekends with race-day analysis, team-radio highlights, and point-standings updates. He explains power-unit upgrades, aerodynamic developments, and driver rivalries in straightforward, SEO-friendly language for a global F1 audience.
