23XI and Front Row Motorsports Officially Ask Appeals Panel to Reconsider Charter Decision

What’s Happening?

23XI Racing and Front Row Motorsports’ legal team has requested that a federal appeals panel revisit a Jun. 5 ruling that will strip the two teams’ six NASCAR Cup Series cars of charter status.

• On Jun. 5, the United States Court of Appeals for the Fourth Circuit ruled on a May 9 appeal hearing to overturn a Dec. 18 judgment that awarded 23XI Racing and Front Row Motorsports, the two teams suing NASCAR, charter status for the duration of their ongoing lawsuit.
• This ruling meant that the teams would lose the three charters (six between the two teams) that they each own; as a result, the two would lose out on automatic qualification for NASCAR Cup Series points races and valuable revenue sharing for each chartered entry, among other grim implications. Following this ruling, the teams had 14 days to petition for a rehearing, something that they have now done.
• In a statement, the two teams’ lawyer, Jeffery Kessler, said, “If upheld, the ruling 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.”
• There is now a stay of mandate on the Jun. 5 ruling, meaning that the teams will maintain charter status for now and should the court decide not to rehear the appeal, seven days after that decision. If the court goes forward with the rehearing, the hearing will be in front of a full panel rather than the three-judge panel from May 9.
• We have covered all angles of this lawsuit extensively via the timeline linked below.

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