Yahoo Autos 23XI and FRM Can Run as Open Teams to Start 2025 NASCAR Season as Lawsuit Continues
In a joint statement for Front Row Motorsports and 23XI Racing, shared attorney Jeffery Kessler announced that NASCAR has agreed to take out the anticompetitive release requirement for "open teams"; this will allow the teams to at least race as a non-chartered team next year as The Clash at Bowman Gray and the Daytona 500 loom closer.
This anti-competitive clause was one of the reasons Kessler and his clients went after an injunction to save the teams from irrevocable financial harm going into the new year as they fight for what they see as a more equitable piece of the whole.
"We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025," Kessler wrote. "My clients will continue their appeal to the 4th Circuit to issue an injection so that they can run as chartered teams therefore avoiding irreparable harm."
Notably, an agreement has not yet been reached between the teams and NASCAR, and the suit is still being pursued and argued. The teams are still seeking an appeal to their initially denied injunction.
U.S. District Court Judge Frank Whitney denied the injunction, citing that entering the NASCAR off-season teams is as far away from 'irreparable harm' as they are from the start of the season.
Kessler and the teams continue to go after the injunction because by not competing as charter teams, they already feel the effects while looking for new and continued sponsorship going into the new season.
"Because competing as “open” teams is not economically viable on any long-term basis and would immediately cause Appellants to experience irreparable injury in the form of the threatened loss of relationships and goodwill with drivers, sponsors, and fans, Appellants sought the proposed injunctive relief," the most recent court filing reads.
The teams hope to compete as chartered teams next year but will not sign the charter while moving forward with their suit until they see the right changes being made.
Racing as an open team in NASCAR comes with serious risks; starting spots are not guaranteed, especially for the season opener at Daytona, which, due to its prestige, often has more entrants than the rest of the NASCAR schedule. If something goes wrong in practice or qualifying, as it's known to happen at the Super Speedways, the teams could be left out of one of the most critical races regarding garnishing revenue and goodwill from their sponsors.
"One of the most important races of the year for Appellants to maintain their goodwill with sponsors, fans, and drivers is the Daytona 500, and that race is scheduled to take place on February 16, 2025," the court filing reads.
Removing the anticompetitive release requirement means that the teams can attempt to return to their offseason schedules, knowing that their involvement at the start of the season is slightly clearer than the "TBD." 23XI Racing owner Denny Hamlin called it last week before the 2024 NASCAR season finale at Phoneix International Raceway.
"Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all," Kessler continued.
Friday night, 12 hours before the news of the removal of the anti-competitive clause for "open team" by NASCAR, 23XI team owner and Joe Gibbs Racing driver Denny Hamlin cryptically dropped a gif of Leonardo DiCaprio in "The Wolf of Wall Street" screaming, "I'm not leaving."
Before context was provided, fans speculated online if this was about a potential contract extension with Joe Gibbs or movement in the 23XI suit.
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