Here is a breakdown of Thursday’s court decision and its impact:

WHAT HAPPENED THURSDAY?

A three-judge panel from the Fourth Circuit Court of Appeals unanimously ruled to vacate the preliminary injunction that a U.S. District court judge had granted 23XI Racing and Front Row Motorsports to run as chartered teams despite not signing the charter agreement.

HOW DOES THURSDAY’S DECISION IMPACT MATTERS THIS WEEKEND AT MICHIGAN?

It does not in any way.

WHY?

23XI Racing and Front Row Motorsports can file a petition for rehearing (requesting the court reconsider its decision) or a petition for rehearing en banc —meaning the full Fourth Circuit Court of Appeals addresses the matters instead of the three-judge panel.

This must be filed within 14 calendar days after entry of judgment (June 5). So that would put the deadline at June 19.

IF THE TEAMS DO NOT SEEK A REHEARING, THEN WHAT HAPPENS?

The decision by the three-judge panel becomes effective seven days after the expiration of time for filing a petition for rehearing.

In this matter, that would mean the panel’s decision could become effective on June 26 — two days before the Atlanta race.

WHAT HAPPENS IN THAT SITUATION?

The 23XI Racing and Front Row Motorsports cars would be classified as open cars instead of chartered cars.

WHAT WOULD HAPPEN TO THEIR CHARTERS?

That would be up to NASCAR.

SO 23XI RACING AND FRONT ROW MOTORSPORTS COULD CONCEIVABLY FAIL TO QUALIFY FOR RACES IF THEY LOST THEIR CHARTERS?

If they were an open team, yes, but, in the 50 races since the start of last year, only two — the Daytona 500 last year and this year — had any cars fail to qualify.

BUT BOTH TEAMS WOULD EARN LESS MONEY AS AN OPEN TEAM, CORRECT?

Yes, but before one goes too far down this road, let’s see what 23XI Racing and Front Row Motorsports decide to do after today’s court opinion. For now, 23XI Racing and Front Row Motorsports remain chartered teams and their six cars are all chartered cars.

WHAT WAS THE RESPONSE FROM THE TEAMS THURSDAY?

This is the statement from Jeffrey Kessler, the lead attorney for 23XI Racing and Front Row Motorsports:

“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps. This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for December 1. We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”

WHAT DID THE THREE-JUDGE PANEL STATE IN ITS OPINION?

“In entering a preliminary injunction in this case, the district court held that the plaintiffs (23XI and Front Row) were likely to succeed on the merits of their antitrust action against the National Association for Stock Car Auto Racing, LLC (NASCAR), and its CEO, James France, because NASCAR, as an alleged monopolist, required the plaintiffs, as a condition of doing business with them, to enter into a release for past conduct. Because that theory of antitrust law is not supported by any case of which we are aware, we conclude that it was not a likely basis for success on the merits and vacate the injunction.”

The judges later stated in their opinion …

“In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory. And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction. … We therefore conclude that the district court abused its discretion in entering the preliminary injunction that it did.

HOW DOES THIS IMPACT THE LAWSUIT 23XI RACING AND FRONT ROW MOTORSPORTS FILED LAST YEAR VS. NASCAR?

It does not. Trial is scheduled for Dec. 1.

BROOKLYN, MI – A 22-year-old NASCAR driver from Michigan has made a handful of enemies on the track this year, but he received high praise from one of the sport’s legends.

Dale Earnhardt Jr. compared Carson Hocevar to his late father, while speaking this week on his show, The Dale Jr. Download.

“I think that the guy reminds me of like a 1979 Dale Earnhardt,” Earnhardt Jr. said. “Fast. Not scared to use the front bumper. Doesn’t care if somebody gets mad about it. On the verge of becoming a star.”

The comments come after Hocevar tied his career-best NASCAR Cup Series finish last Sunday, finishing second at Nashville Superspeedway. But in the process, Hocevar hit Ricky Stenhouse Jr., sending him into the wall and ruining his finish.

Stenhouse wasn’t happy, and hinted at payback after the race. Stenhouse infamously punched Kyle Busch after getting crashed at the All-Star Race last year.

The next chapter in the drama could unfold at Michigan International Speedway – Hocevar’s home track. The series will race at MIS at 2 p.m. on Sunday, June 8.

Prime Video is broadcasting the race, with Earnhardt Jr. on the broadcast team.

Earnhardt Jr. said he sees a “glimpse” of his dad in a handful of drivers, including Ross Chastain and Joey Logano.

“(Hocevar) makes a lot of mistakes, ruffles a lot of feathers. But he’s very fast, very aggressive,” he said.

Hocevar, from Portage, has leaned into Dale Earnhardt comparisons this year, even buying a black No. 3 Dale Earnhardt-styled truck and driving it to a race.

Many in the industry have chastised Hocevar this week, including veteran racer Denny Hamlin.

“You may think it’s cool to be the tough guy and put on this persona of someone that’s one of the most popular drivers in our sport because he was ‘The Intimidator.’ You’re not that guy,” Hamlin said. “This is a different type of racing nowadays. It’s not the best strategy, especially as good as he’s running.”

Hocevar is 17th in points, just four points out of a potential playoff spot – and two points in front of Stenhouse.

While Earnhardt Jr. questions Hocevar’s move on Stenhouse, he doesn’t want him to change his driving style.

“I say (this all) to maybe encourage Carson to continue what he’s doing, because Dale Earnhardt ended up being a seven-time champion,” Earnhardt Jr. said. “And that aggressive style is something that endeared him to a lot of people.”

NASCAR legend Jeff Gordon has spoken out as Hendrick Motorsports announced a new multi-year NASCAR partnership in an official team statement.

Phorm Energy has joined the 14-time NASCAR Cup Series champions on a deal through until the end of 2027, with the agreement set to begin immediately and feature ‘dynamic marketing integrations’.

This includes the primary sponsorship of the No. 24 Chevrolet, driven by William Byron, and the wider No. 24 team.

Speaking as part of the official statement confirming the news, vice chairman of Hendrick Motorsports, Jeff Gordon, said: “It’s an amazing opportunity to work with a powerhouse like Anheuser-Busch, as they launch Phorm Energy and build something new.”

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Gordon continued: “As a brand grounded in shared values of dedication and hard work, we’re proud that the No. 24 team and our incredible athletes get to be part of their community,”

“We’re making a major investment in our facilities to support our teammates with the best possible resources, and it’s exciting to have Phorm Energy involved from day one.

“We look forward to collaborating on a distinctive and authentic program.”

Elsewhere in the official statement, Sal Frisella, CEO of 1st Phorm, added: “Launching Phorm Energy is a huge moment for our team and partnering with Hendrick Motorsports is just another way we can continue to grow and deliver something truly special,”

“We have built this brand for people that embrace the grit and grind in their everyday lives and that’s something that Hendrick Motorsports and their drivers inherently know and understand.

“We know we found the right partner in Hendrick Motorsports and together we have big plans.”

READ MORE: Jordan-owned 23XI Racing under threat as NASCAR win huge legal ruling

What is Phorm Energy?

According to the press release, Phorm Energy is the first innovation from the partnership of Anheuser-Busch, 1st Phorm and Dana White.

The drink is set to be available in four varieties, with flavors named Screamin’ Freedom, Blue Blitz, Orange Fury, and Grape Smash. The drink is said to boast natural flavors, natural caffeine from green tea, electrolytes, and ingredients aimed at supporting mental focus.

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A three-judge federal appellate panel ruled Thursday in favor of NASCAR in the antitrust lawsuit filed by two teams, one owned by Michael Jordan, and vacated an injunction that required 23XI Racing and Front Row Motorsports to be recognized as chartered teams as their case snakes through the legal system.

Both race teams sued NASCAR late last year after refusing to sign new agreements on charter renewals. The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates. 23XI, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, allied with Front Row in suing NASCAR after 13 other organizations signed the renewals last September and those two organization refused.

“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,” said Jeffery Kessler, attorney for 23XI and Front Row. “This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for Dec. 1.

“We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”

The two teams sued and asked for a temporary injunction that would recognize them as chartered teams for this season. The antitrust case isn’t scheduled to be heard until December.

The teams said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick’s contract would have made him a free agent if the team could not guarantee him a charter-protected car.

The original judge ruled that NASCAR’s charter agreement likely violated antitrust law in granting the injunction. But when they heard arguments last month, the three judges at the the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, indicated they were skeptical of that decision.

The judges said in Thursday’s ruling they were not aware of any case that supports the lower court’s theory of antitrust law, so they vacated the injunction.

“In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory,” the court said. “And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.”

The teams have 14 days to appeal to the full court. The injunction also has no bearings on the merits of the case, and the earliest NASCAR can treat the teams as unchartered — a charter guarantees their organizations a starting spot each week and prize money — is one week after the deadline to appeal, provided there is no pending appeal.

NASCAR has not said what it would do with the six charters held by the two organizations if they are returned to the sanctioning body. There are only 36 chartered cars for a 40-car field. If the teams do not appeal, the six entries would have to compete as “open” cars — which means they’d have to qualify on speed each week to make the race and they would receive a fraction of the money.

It’s not clear what would happen to Reddick’s contract. He goes to Michigan this weekend ranked sixth in the Cup Series standings. Both organizations are still seeking a win this season — Hamlin’s three victories are with Joe Gibbs Racing, the team he drives for.

Reddick is last year’s regular-season champion and competed for the Cup title last November.

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23XI Racing and Front Row Motorsports (FRM) have suffered a major setback in their legal battle against Nascar over the charter system after the US Court of Appeals overturned the injunction agreed in December 2024.

The injunction had meant 23XI and FRM were allowed to compete in the Nascar Cup Series and receive the same benefits as other chartered teams while still pursuing their lawsuit against the series. The ruling also granted the teams permission to purchase charters from Stewart-Haas Racing and that Nascar must approve those purchases.

This has now been overturned in a hearing where judges questioned the teams’ attorney Jeffrey Kessler on why they should enjoy the benefits of the charter agreement while suing Nascar over the particulars of it. The fact this case was without precedence was cited as a key reason for the ruling, with the judges stating that the ‘theory of antitrust law’ asserted by 23XI and FRM ‘is not supported by any case of which we are aware’.

The US Court of Appeals also said that the teams failed to make a ‘clear showing that they were likely to succeed’ in their case. Without that, the injunction was revoked.

The ruling won’t take effect for two weeks, which gives 23XI and FRM the chance to appeal. But, if this passes, the teams will have to compete as open teams for the remainder of the 2025 season.

As open entries, 23XI and FRM are no longer guaranteed entry to races and will earn less than a third of what a chartered team makes for competing in a race. FRM team owner Bob Jenkins claimed in the original injunction that the payout from the purse would be so low as an open entry that it would not cover the costs of going to the racetrack.

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It should be noted, though, that both teams were prepared to enter the 2025 season as open entries before the surprise decision to allow an injunction was passed. 

‘We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,’ read a statement from Kessler.

‘This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for December 1st.

‘We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.’

This is the latest twist in a long and complicated case that has seen the two teams initially refuse to sign Nascar’s proposal for a new charter agreement in September 2024 before filing an antitrust lawsuit against the series, in which they accused the organisation of monopolistic practices.

Their request for an injunction was initially rejected by US District Judge Frank D Whitney, but then US District Judge Kenneth D Bell later agreed to the injunction.

The trial date for the lawsuit is set for December of this year.