It looks like NASCAR has their noses in front in the legal battle against 23XI Racing and Front Row Motorsports. Ahead of the preliminary injunction hearing, the two teams had filed a motion for expedited discovery. The teams wanted to access the documents and files discussing release provisions in the 2025 Charter Agreement.

The purpose of this expedited discovery was to make a strong case for their argument in getting the preliminary injunction. Basically, the permit to continue racing as a chartered team in 2025, despite not having signed the new agreement. NASCAR, since then, has publicly disregarded the request made by the team in the lengthy documents they released. Which also shared their plans for the 2025 season to race with only 32 charters.

And going by the recent developments, it looks like NASCAR has edged Michael Jordan and Co’s rebellion in this legal battle.

NASCAR’s financial records are safe for now

With the expedited discovery, 23XI and FRM wanted to obtain documents of commercial agreements, which they rejected. But NASCAR, in its response, claimed that the motion was meritless to extort more favorable contract terms. Previously, the documents shared by 23XI Racing stated that NASCAR held private meetings with other team owners to get them to sign the charter agreement.

All 13 teams signed the new deal in what is now being labeled as a take-it-or-leave-it deal. However, both parties were merely advocating their arguments, and only a legal intervention could decide the outcome of these disagreements. Well, the courts have initiated that process, and it looks like NASCAR has won the first round against Michael Jordan and Co.

According to an update by Bob Pockrass, 23XI Racing and FRM’s motion for expedited discovery was denied before the preliminary injunction hearing. “The motion by the teams for expedited discovery to get some documents from NASCAR before the preliminary injunction hearing Monday has been denied.”

“In denying the request for expedited discovery, the judge ruled the 23XI/FRM request for documents from NASCAR for use for the preliminary injunction hearing Monday was overly broad & the teams had indicated they could prevail on the preliminary injunction without the documents,” he further added.

Going by this ruling, NASCAR looks to gain an edge over the teams for now. However, a ruling on the preliminary injunction is of significance in this legal battle. And NASCAR has made a pretty good case for themselves in the hopes of barring the two teams from competing as chartered organizations in 2025.

Can 23XI Racing and FRM run as open teams?

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The two teams have made it clear that they would compete in the Cup series with or without the charters in 2025. Now, if the preliminary injunction doesn’t rule in favor of the teams, they will have to run as open teams. This means their place in the starting field won’t be secured, and they wouldn’t have the perks of additional TV revenue and charter benefits as the rest of the 13 chartered teams.

NASCAR has decided to use the team’s words against them: “Plaintiffs cannot establish irreparable harm since Plaintiffs and their counsel have confirmed that Plaintiffs’ teams will compete as open teams in 2025, which means that money damages can compensate Plaintiffs even if they were to ultimately prevail.” This was NASCAR’s response to the team filing for injunction.

Another vital aspect of this legal tussle is the sale of the two Stewart Haas Racing charters. Both teams have expanded to three-car teams for the next year and have purchased a charter each from SHR, who are closing at the end of 2024. But NASCAR has the final say in confirming the transfer of the charters, and this meant the two teams could lose out on their new investment.

This would also put SHR in a sticky spot, as they would have to find new buyers in case NASCAR took over the charters. But it looks like the two charters will remain with 23XI Racing and Front Row Motorsports. “SHR’s Joe Custer told me he met with NASCAR, and he doesn’t believe he’ll have to run those cars or sell charters to someone else.” Bob Pockrass shared this on X.

It is hard to guess what will become of the two teams and their charters for next year. However, the preliminary junction court date set for Monday would shed better light on which side the wind is blowing strongly. And unlike the expedited discovery, the injunction is vital for 23XI Racing and FRM to be able to compete in 2025.