Fourth Circuit Appeals Court Questions Injunction Allowing 23XI Racing, Front Row Motorsports Charter Status Amid Antitrust Lawsuit

The U.S. Court of Appeals for the Fourth Circuit heard an appeal regarding an injunction that allows NASCAR teams 23XI Racing and Front Row Motorsports (FRM) to compete as chartered teams in the 2025 season while pursuing an antitrust lawsuit against NASCAR. The injunction was initially granted by a district court, but the appellate panel expressed skepticism about the decision, questioning whether the injunction unfairly favors 23XI and FRM. Judges indicated that the teams cannot both hold charter status and simultaneously sue NASCAR for antitrust violations, suggesting that the injunction might be overturned or modified. The court appeared troubled by the teams' position, implying they must choose between signing the charter agreement or racing as open teams while seeking damages through litigation. NASCAR's position was viewed favorably during oral arguments, with the appeals court panel considering whether the injunction improperly benefits the two teams. 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and FRM have been involved in a legal dispute over NASCAR's charter system, which the teams allege violates federal antitrust laws. Denny Hamlin did not attend the hearing but stated the team would handle the outcome regardless of the court's decision. Suggestions were made that an escrow system might resolve the dispute, with charter fees held until the lawsuit's resolution. The appeals court's decision could significantly impact the status of 23XI Racing and Front Row Motorsports for the upcoming NASCAR season.