23XI, Front Row attorney Jeffrey Kessler responds to latest loss in lawsuit vs. NASCAR

Jeffrey Kessler, attorney for 23XI Racing and Front Row Motorsports, released a statement Wednesday after the teams’ request to have their case reheard after a three-judge panel overturned the preliminary injunction which granted charter status to the teams throughout the duration of their lawsuit against NASCAR was denied. The U.S. Court of Appeals for the Fourth Circuit denied the request after initially vacating the preliminary injunction June 5.

“We are disappointed by the Fourth Circuit Court of Appeals decision to deny our request for a full rehearing. This decision has no bearing on the strength of our antitrust case. Which we look forward to presenting at trial,” Kessler said, via Jordan Bianchi of The Athletic. “We are committed to racing this season as we continue to fight for more competitive and fair terms for all teams to ensure the future of the sport, and remain fully confident in our case.”

There was a 14-day window for the teams to ask the case to be heard by the entire panel of judges at the Court of Appeals. 23XI and Front Row filed their petition June 20. As a result of the latest decision, 23XI and Front Row could potentially lose their charter status effective for the July 20 Cup Series race at Dover Motor Speedway.

How could latest ruling in NASCAR lawsuit impact 23XI, Front Row?

Kessler said last month that if the ruling was upheld, it “would set a dangerous precedent, allowing monopolists to shield themselves from legal challenges simply by requiring release language as a condition of doing business with the monopoly.”

If the teams lose their charter status, they will run as open teams. Chartered teams are guaranteed a spot on the grid each week. Open teams must qualify on speed. Whereas chartered teams receive a portion of the revenue from NASCAR’s multi-billion-dollar media rights deal, open teams do not. Regardless of finish, open teams earn far less money. Furthermore, loss of charter status would compromise and void contracts with sponsors and drivers.

Judge Ken Bell of North Carolina’s Western District urged both sides to settle before the case goes to trial Dec. 1: It’s hard to picture a winner if this goes to the flag — in this case. It scares me to death to think about what all this is costing.”