NASCAR has filed documents in the Western District of North Carolina stating its intent to appeal the Court's Dec. 18 Order granting 23XI Racing's and Front Row Motorsports' Motion for Preliminary Injunction.
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This filing took place on Dec. 19, the same day that NASCAR and CEO Jim France filed a motion for the court to stay the order granting the preliminary injunction. However, they also listed one exception — the Court's requirement that NASCAR guarantee entry into every race on the schedule for two Front Row Motorsports cars and two 23XI Racing cars.
NASCAR stated that without a stay, it would suffer irreparable harm in the form of the charter transfers from Stewart-Haas Racing to 23XI Racing and Front Row Motorsports. These transfers were set to take place on Dec. 20.
NASCAR stated that this would force it into a 7-14-year contractual relationship with the two teams filing the lawsuit.
"Moreover, it would be difficult, perhaps even impossible, to unwind these court-ordered transfers once they have occurred," the Dec. 19 court documents state.
The Court and Judge Kenneth D. Bell responded to the motion to stay and motion for expedited resolution. A Dec. 20 document stated that the Court had partially granted the motion for expedited resolution of the motion to stay pending appeal.
Judge Bell said in a Dec. 20 document that the transfers of the charters will stay until after the Court makes its ruling on the motion to stay. This ruling will take place on Monday, Dec. 23. Judge Bell also gave 23XI Racing and Front Row Motorsports until 10 a.m. on Dec. 23 to respond to NASCAR's motion to stay pending appeal.
Judge Bell also stated in the document that NASCAR was incorrect on one point mentioned in the motion to stay. The Court would not actually force NASCAR into a contractual relationship lasting seven to 14 years.
"For the transfer of the Stewart Hass Racing charters, the Court ordered NASCAR to immediately approve the transfers so that the transactions could close and Plaintiffs would not suffer the irreparable harm of losing the opportunity to acquire the charters," Judge Bell stated, "however, the Court clearly retains the equitable power to in the future effectively 'unwind' those transactions through an order requiring Plaintiffs to transfer/sell the charters back to NASCAR or another team approved by NASCAR. Therefore, Defendants are also not irrevocably bound to a long-term contractual relationship on those charters."
