In response to the preliminary injunctions granted to 23XI Racing — owned by Michael Jordan and Denny Hamlin — and Front Row Motorsports, NASCAR filed a brief on Friday urging the U.S. Court of Appeals for the Fourth Circuit to reverse the decision.
In the appeal, NASCAR contends that 23XI and Front Row sought and received injunctions binding them to the 2024 charter agreement despite contending that the charter violates antitrust law.
NASCAR asserted that U.S. District Judge Kenneth D. Bell misapplied antitrust laws and portrayed the release of claims as standard business practice, not anti-competitive conduct. NASCAR argued that businesses, per case law, have a right to choose the terms and conditions of their agreements and that it’s the teams’ choice to accept or decline those terms.
Per the appeal, NASCAR went on defend exclusivity agreements with racetracks and limited non-compete clauses, emphasizing their importance in cost control and consistency for race operations and media rights.
NASCAR presented 23XI Racing and Front Row Motorsports as investments by entrepreneurs such as Jordan, contrasting them with antitrust cases involving athletes restricted by monopolistic environments.
In the appeal, NASCAR explained its competitiveness in attracting capital, fans and owners, citing high turnover and the need for continual investment.
Meanwhile, 23XI and Front Row in court filings have maintained that NASCAR’s business practices are monopolistic and anticompetitive and deny teams a fair shake.
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