Motorsport isn’t just what happens on the track. A lot goes on behind the scenes to ensure that racing is a two-way street. While fans expect money’s worth when they turn up to the tracks or tune into their TV sets, the sport has its own commercial viability to worry about.
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The latest NASCAR Charter has been divisive between the sanctioning body and the teams. After all, there’s a lot at stake—both commercially and legally.
Michael Jordan and Denny Hamlin’s co-owned squad 23XI Racing along with Front Row Motorsports (FRM) had refused to sign the latest charter proposed by NASCAR. As a result, the competition banned the teams from participating from 2025 onwards. However, the duo have now approached the judicial system to tackle this bane.
As per Fox Sports stalwart, Bob Pockrass, “23XI/FRM filed reply to NASCAR response to injunction motion.” What does this mean for the legally less inclined? Well, it’s very simple. The world of law revolves around rights and obligations.
23XI/FRM filed reply to NASCAR response to injunction motion.
-23XI/FRM state open team agreement also requires them to waive right to pursue this type of lawsuit so injunction needed to race.
-Teams argue injunction wouldn’t harm NASCAR, just keep status quo of 36 charter teams.— Bob Pockrass (@bobpockrass) October 30, 2024
When 23XI Racing and FRM refused to sign the charter, NASCAR was well within its rights to refuse them entry into the 2025 season. However, it is also a well-founded principle of law that no right (which in this case is the right to participate for the two outfits) can be taken away without a definitive judicial decision.
Therefore, the teams filed an injunction notice. What this means is that if successful, the two teams can still compete in the upcoming Cup Series calendar until and unless a decision, against them, has been passed by the court of law.
Pockrass reveals that NASCAR has filed its reply to this injunction notice. Naturally, it means that the sanctioning body is challenging the rights of 23XI Racing and FRM to take part in the competition without signing the charter.
Generally, injections under American laws are granted quite easily. What makes the case even stronger is the fact that both — the earlier and new charters seem to restrict the rights of teams to pursue legal remedies once they’ve signed the document. This is seen in a very dim light by the courts from an antitrust / competition law perspective.
The rule of thumb is that no party’s right to sue or enforce their legal rights can be infringed by a document. Hence, it seems, that for the time being 23XI Racing and FRM will feature in the NASCAR Cup Series next year, too. But if the court rules against them, they have only two options — either to comply with the charter or bid their NASCAR stint a firm goodbye.
