The Court has issued a ruling after a preliminary injunction hearing with NASCAR, Front Row Motorsports, and 23XI Racing. The Court has denied the injunction request.
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US District Judge Frank D. Whitney issued the ruling on Friday morning as NASCAR President Steve Phelps and NASCAR COO Steve O'Donnell met with media members in their annual State of the Sport address. Judge Whitney also issued an explanation for why he denied the preliminary injunction.
"Plaintiffs have not met their burden as required for a preliminary injunction. Should circumstances change, Plaintiffs may file a renewed motion for preliminary injunction. Therefore, the Court denies Plaintiffs' motion without prejudice."
The preliminary injunction would have allowed 23XI Racing and Front Row Motorsports to compete as either chartered or open teams in 2025 without losing their ability to continue with their antitrust lawsuit against NASCAR.
The judge's explanation for not granting the preliminary injunction highlighted four points. He stated that the Plaintiffs (23XI and Front Row) "have not alleged the present prospect" that they will be harmed by the loss of sponsors due to the lack of a charter. The judge said that the teams had only alleged the "possibility" that they would lose sponsors.
The judge made a similar explanation regarding the comments that 23XI Racing could lose Tyler Reddick if the team does not have a charter.
The third point focused on the teams' ability to survive without a charter. Judge Whitney said in the ruling that "They allege that their businesses may not survive without a preliminary injunction" not that their businesses "cannot survive."
The fourth point focused on whether the loss of goodwill would justify a preliminary injunction. Judge Whitney stated that "Plaintiffs have alleged only a potential loss of goodwill, contingent on a host of events occurring, including speculation about how third parties may or may not act."
This outcome is one that Jeffrey Kessler, lead attorney for 23XI Racing and Front Row Motorsports, acknowledged as a possibility. He met with media members after the preliminary injunction hearing on Monday and said that they "have the immediate right to appeal" if the Court denied the preliminary injunction.
"I am optimistic that we're right," Kessler said on Monday. "Hopefully, the judge will see it the right way, and that we will eventually prevail this case.
"This is the first step, but I've been litigating a very long time. I don't make predictions about outcomes and cases because I've been surprised in the past."
NASCAR President Steve Phelps did not have a comment regarding the Court's ruling.
