CHARLOTTE, N.C. — A federal judge could decide by Friday if to grant a preliminarily injunction that would allow 23XI Racing and Front Row Motorsports to compete as charter teams next season despite those organizations not signing the new charter agreement.
U.S. District Court Judge Frank D. Whitney made the statement Monday after hearing more than an hour of arguments — some of it spirited and charged — from attorneys representing NASCAR along with 23XI Racing and Front Row Motorsports.
23XI Racing and Front Row Motorsports seek a preliminary injunction that grants them rights as a charter team through the duration of the trial without losing their right for an antitrust lawsuit. If not that, both teams seek to be able to run as an open team without losing their right for an antitrust lawsuit.
23XI Racing and Front Row Motorsports filed an antitrust lawsuit Oct. 2 against NASCAR, stating, “NASCAR has unlawfully maintained its monopoly position for offering a top-tier stock car racing series in the United States in violation of the Sherman Antitrust Act.”
NASCAR, in court documents opposing the injunction, has stated that the motion by 23XI Racing and Front Row Motorsports is a “masterclass in contradictions. ... These contradictions expose Plaintiffs’ motive: to use this court to extract more money and better contractual terms from NASCAR.”
23XI Racing co-owners Denny Hamlin, Michael Jordan and Curtis Polk were in court with Front Row Motorsports owner Bob Jenkins. NASCAR Chairman Jim France also attended.
#NASCAR … 23XI Racing co-owners Michael Jordan and Denny Hamlin and Front Row owner Bob Jenkins arrive at federal courthouse in Charlotte for preliminary injunction hearing. pic.twitter.com/grLhlcfHic
— Dustin Long (@dustinlong) November 4, 2024
Jeffrey Kessler, a specialist in sports labor and antitrust disputes, represented 23XI Racing and Front Row Motorsports.
He stressed to the judge the importance of granting the teams charter rights by saying: “If we do not have charters, our drivers are free to leave, including the driver who may be the champion of NASCAR.”
Kessler was speaking about 23XI Racing’s Tyler Reddick, who will compete against Joey Logano, Ryan Blaney and William Byron for the Cup championship Sunday in Phoenix (coverage begins at 2 p.m. ET on NBC).
Kessler’s voice often rose in court and his arms swung as he explained to the judge why the preliminary injunction should be granted.
“We are seeking relief to go forward next season,” Kessler said in court.
Jeffrey Kessler, attorney for 23XI and Front Row on the possibility of the judge deciding Friday on the preliminary injunction in matter vs. #NASCAR pic.twitter.com/CYjYG67aOF
— Dustin Long (@dustinlong) November 4, 2024
Attorney Christopher Yates, representing NASCAR and France, said that in the new charter agreement, which begins Jan. 1, teams will receive “nearly half” of the TV revenue from the new deals and noted “that’s not small by any means.” He did not disclose any figures.
Yates noted that 13 of the 15 Cup teams signed the new charter agreement and said of the claims made by the plaintiffs: “It’s contrived. It’s made up, your honor.”
Yates later told the judge: “The plaintiffs have focused on false accusations and called NASCAR a series of names.”
Jeffrey Kessler, attorney for 23XI/Front Row on his feelings after arguing against #NASCAR for the preliminary injunction in federal courthouse pic.twitter.com/Dqs9A0q8Xi
— Dustin Long (@dustinlong) November 4, 2024
At the end of his 30 minutes, Yates told the judge that there is “so much more I can say that is wrong with Mr. Kessler’s declaration.”
During his time for rebuttal, Kessler stressed that 23XI Racing and Front Row Motorsports have no other options to compete because they are NASCAR stock car teams and that is a specialized field.
Kessler told the judge: “You can’t go tell a football player to become a baseball player like you can’t go to a NASCAR team and say, be an F1 team.”
Kessler also discounted the argument Yates made on behalf of NASCAR and France. Kessler told the judge of Yates: “He is manufacturing facts and he is misrepresenting what we seek in relief.”
NASCAR and its attorneys declined comment after Monday’s session. Kessler, flanked by owners from both teams, spoke to reporters afterward.
“I think we made all the points we had to make and we’re going to look forward to Friday and hopefully get our injunction,” he said.
Kessler went on to say: “This is the first step. I’ve been litigating a very long time. I don’t make predictions about outcomes on cases because I’ve been surprised in the past, but I felt very good, which is all I can do, that we made our case, that we are right on the facts, we are right on the law and, hopefully, the judge will agree.”
Jordan was asked about having this case hang over the team and if it would impact the team in any way as it prepares to race for a championship.
“I think the race team is going to focus on what they have to do this weekend, which I expect them,” Jordan said. “I think Jeffrey [Kessler] did an unbelievable job today. Hey, I put all my cards on the table. I think we did a good job of that. I’m looking forward to winning a championship this weekend.”
