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The ongoing legal battle between NASCAR and 23XI Racing/FRM has certainly kept the racing fans on the edge. Although the court hearings have no similarities to the thrill of actual on-track racing, the NASCAR community seems to be hooked on the updates of this lawsuit. While the antitrust lawsuit case hasn’t started yet, the attention for the time being is on the preliminary injunction.

And going by the latest updates, Denny Hamlin and Michael Jordan’s team have their noses in front. Judge Kenneth Bell granted the preliminary injunction to the two teams despite NASCAR’s appeal. Well, this ruling has now somewhat tilted the scales in favor of the teams for the time being. But amidst this legal dispute, rumors regarding NASCAR’s next charter deal have surfaced online.

Is NASCAR a monopolistic bully?

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Judge Bell’s ruling wasn’t just restricted to the preliminary injunction plea, as he took a tough stance against NASCAR’s argument. The sanctioned body stated that the two teams couldn’t sue them as they didn’t sign the 2025 charter agreement. But here’s where things get interesting because NASCAR has a clause in the new deal that nullifies the team’s attempt to file an antitrust lawsuit against them.

So theoretically, 23XI Racing and FRM wouldn’t be in the position to challenge NASCAR’s unfair system had they signed the agreement. The judge also shared an analogy using the NCAA as an example. “Could the NCAA just say to all prospective “student athletes” that they can’t play unless they agree to release the NCAA from antitrust liability? Of course not. NASCAR’s “release to race” requirement simply doesn’t pass muster and is likely to be found to violate antitrust laws.”

With this development, there are rumors spreading online that NASCAR has already decided on the new charter agreement after the end of the seven years in 2031. The social media post stated that this new deal will be put in motion without the team’s approval, and they will have to accept the “take it or leave it” deal. Not only that, the sanctioning body is expected to get a 50% increase in media rights while no provision has been made for the teams. Well, a rumor is just a rumor after all, and Denny Hamlin’s former crew chief, Chris Gabehart, shared his take on this speculation.

Replying to a social media post shared by Couch Racer on X, Gabehart wrote, “As you know, don’t believe everything you hear.” There are a lot of opinions and speculations going around on social media due to this ongoing legal tussle. But the veteran crew felt the urge to clear things around this time. For starters, the lawsuit is about the current seven-year deal and how it could shape the sport. Now, the verdict can indeed go either way, which is why predictions and baseless rumors about the next charter deal seem far-fetched.

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Is NASCAR acting like a monopolistic bully, or are the teams just playing victim?

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Meanwhile, the preliminary injunction drama is far from over. Although Front Row Motorsports was given the go-ahead by the court for their transfer of the SHR charters, things are not the same for 23XI Racing.

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23XI Racing will have to file a separate preliminary injunction appeal

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Now the two teams have made plans to expand to three-car teams going into the 2025 NASCAR season. However, circumstances changed as the two team owners didn’t agree to the new charter deal and, in response, took NASCAR to court. This move immediately cast doubts on the transfer of the charter sale to the new owners. Moreover, without the charters, the teams would have had to field open cars, and that was indeed a doomsday scenario for them.

This is why 23XI Racing and FRM were eager to get an injunction. The injunction would retain their chartered team status and allow them to run with three cars in 2025. Although both teams had filed for an injunction appeal, 23XI Racing had not asked for the transfer of the SHR charter in their request. The good news is that Denny Hamlin’s team will be able to file a new request to get a similar outcome as FRM.

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NASCAR isn’t out of the race just yet, as they are likely to appeal the approval of the injunction. In the event the court denies their appeal, the lawsuit will transition into the next phase, which will lead to discovery. But the tricky part is that there’s no confirmation on the court’s next hearing that could facilitate NASCAR’s concern and their appeal against the injunction motion.

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Is NASCAR acting like a monopolistic bully, or are the teams just playing victim?