In a significant legal development, 23XI Racing and Front Row Motorsports secured two key victories in court today. Judge Kenneth Bell ruled against NASCAR’s motions to dismiss the lawsuit and to compel the teams to post a bond for the 2025 season. This decision clears the path for the lawsuit to proceed to trial.
Attorney Jeffrey Kessler, representing both teams, expressed satisfaction with the ruling. In a statement shared with the media, Kessler commented:
“We are pleased with today’s decision by Judge Bell to deny the Motions to Dismiss and Motion for Bond and look forward to presenting our case at trial.”
Motion to Dismiss Denied
Judge Bell provided a detailed explanation behind his denial of NASCAR’s motion to dismiss. The court found that the plaintiffs, 23XI Racing and Front Row Motorsports, had presented sufficient evidence to support their antitrust claims. The judge emphasized that such determinations are not appropriate at the motion to dismiss stage, noting:
“What is the actual evidence and how does it inform a correct legal conclusion? These questions cannot be determined on motions to dismiss in this action, where Plaintiffs have sufficiently alleged one or more plausible antitrust claims against Defendants within the applicable period of limitations.”
This ruling ensures the lawsuit continues to move forward, with both teams maintaining the ability to present their full case at trial.
Motion for Bond Also Rejected
In a separate motion, NASCAR had requested that the teams post a bond for the 2025 season. If NASCAR were to win the lawsuit, the bond would be used to reimburse the series. However, Judge Bell rejected this motion as well. His decision explained that while NASCAR had previously argued that the chartered teams, including 23XI Racing and Front Row Motorsports, may not contribute in the same manner as other teams, the harm caused by allowing the teams to race chartered cars on the same terms was uncertain and unquantified.
Judge Bell’s reasoning was outlined as follows:
“While NASCAR sought to minimize the value that it will receive from Plaintiffs at oral argument, NASCAR has previously argued at length that the balance of payments and obligations for chartered teams is beneficial rather than harmful to NASCAR so, at least impliedly, the consideration paid to the chartered teams represents fair compensation for their obligations. However, NASCAR persuasively argued that its benefit from Plaintiffs racing as chartered teams may not be the same as received from the other chartered teams, in that Plaintiffs have not and will not be pulling their oars in the same direction as NASCAR and the other charter teams. Nonetheless, the alleged harm to NASCAR of allowing Plaintiffs to race chartered cars on the same terms as the other 30 chartered teams is presently both uncertain and unquantified.”
Impact of the Ruling
Judge Bell’s decisions today are pivotal for the future of the lawsuit. The court's refusal to grant NASCAR’s motions means that 23XI Racing and Front Row Motorsports will be able to continue their legal challenge without having to set aside millions in escrow as a bond.
Each chartered team, under NASCAR’s system, receives approximately $5 million per season as part of the charter agreement, money that helps sustain operations. NASCAR had hoped to have this amount set aside for potential reimbursement, but the judge disagreed, highlighting the uncertainties and lack of clear harm in doing so.
As the case proceeds, it will have significant implications for both the teams involved and NASCAR's operations.