The ongoing NASCAR lawsuit has taken an unexpected turn. After the federal court denied 23XI Racing and Front Row Motorsports’ request to retain their charters for 2025, both teams jointly decided to appeal Judge Frank D. Whitney’s verdict. With the threat of running as ‘open’ teams looming large, the prospect of potentially losing sponsors and drivers became an inevitable reality. Given what’s at stake, challenging the court’s decision seemed like the only viable option.

However, the latest developments indicate that 23XI Racing and Front Row Motorsports have dropped their preliminary injunction appeal. What might be the reason for this drastic change in approach? How will it affect both teams going into the 2025 season? As things stand, there are plenty of unanswered questions that are open to speculation.

The NASCAR lawsuit takes an unpredictable twist

Amidst all the uncertainty, the only clear thing is that 23XI Racing and Front Row Motorsports will be participating in the 2025 season. NASCAR recently ‘modified’ the open agreement, which removed the clause preventing teams from taking the sanctioning body to court. The small, but significant change made all the difference in both teams dropping their preliminary injunction appeal in the ongoing NASCAR lawsuit, with drivers and sponsors being assured that their participation in the Cup Series is inevitable, irrespective of the lawsuit’s outcome.

Breaking the news, FOX Sports journalist Bob Pockrass revealed on X about the preliminary injunction appeal being dropped, stating that the court filing said, “Circumstances have changed in the underlying case, removing the need for this appeal and necessitating Appellants to seek new relief from the district court.” While they have not specified what has changed, speculation is rife about the possible reasons why this might have happened.

As things stand, both teams could refile for the preliminary injunction in the district court, which Judge Frank D. Whitney has given them the option to do. However, another possibility is that 23XI and Front Row Motorsports have reached some form of settlement, which will effectively nullify the need for an appeal. With Riley Herbst having recently signed for 23XI Racing, the team co-owned by Denny Hamlin and Michael Jordan has accepted that they might need to field three ‘open’ category cars in 2025. However, what could the possible repercussions be for withdrawing the preliminary injunction appeal in the NASCAR lawsuit? Time will tell.

According to Sportsnaut journalist Matt Weaver, drivers and sponsors have opt-out clauses in their contracts, should 23XI Racing and Front Row Motorsports lose their charters. What this means is that they have the option to leave, but that doesn’t mean they will. With both teams participating in the Cup Series in 2025, the likelihood of ‘irreparable harm’ is slim, even though both teams will incur significantly higher costs as they’re not part of the existing charter agreement.

Kessler pleased after the open agreement modification

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It was always going to be risky. When 23XI Racing and Front Row Motorsports announced their NASCAR lawsuit, the battle seemed like David taking on Goliath. The France family has maintained tight control of the sport, and threatening that level of power and influence could end in one of two ways. Either both teams would face disastrous consequences for their actions, or the lawsuit could change NASCAR forever. Even though it’s too early to say, the sanctioning body seems to have the upper hand.

With the request for a preliminary injunction being denied and the subsequent appeal being dropped, both teams could compete in the ‘open’ category for 2025. However, the decision will come with its fair share of uncertainty, because if more than 40 teams attempt to compete in a race, the drivers will be forced to qualify their way into the field. This means that the likes of Tyler Reddick, Bubba Wallace, or Ryan Preece could potentially miss a big event.

However, anti-trust attorney Jeffrey Kessler was happy that NASCAR modified the open agreement, going on to say, “We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025.” The plaintiff’s representative went on to say, “Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”

What are your thoughts about the preliminary injunction appeal being dropped? Let us know in the comments!