Antitrust Law Daily Wrap Up, ANTITRUST—W.D.N.C.: Stock car racers again denied preliminary injunction against NASCAR, (Sep 4, 2025)

By Kenneth H. Ryesky, M.B.A., J.D.

In "proverbial last laps" of the litigation stage, NASCAR gave court assurances that the racing teams would have opportunity to compete before the scheduled trial.

A federal district court judge in Charlotte, North Carolina has denied a preliminary injunction to two stock car racing teams that compete in the NASCAR Cup Series. The two teams each objected to new conditions NASCAR seeks to impose upon its racing teams for the 2026 season. The court's earlier preliminary injunction had been vacated on appeal for want of a showing of probable success on the merits. NASCAR here had given the court assurances that the racing teams would be allowed to compete for the remainder of the season, so no irreparable harm was shown here. Having found no irreparable harm, the court found no need to address the success on the merits, balance of equities, or public interest requisites for granting a temporary restraining order (2311 Racing LLC v. National Association for Stock Car Auto Racing, LLC, No. 3:24-CV-00886-KDB-SCR (W.D.N.C. Sept. 3, 2025)).

Background-NASCAR. The National Association for Stock Car Auto Racing (NASCAR) is an internationally prominent motorsports league whose sanctioned automobile racing events, most notably its NASCAR Cup Series (NCS), draw one of the largest spectatorships in America. The NASCAR organization, with its numerous subsidiary and sister entities is a privately owned and controlled entity.

NCS prize money is insufficient to cover the continuing car maintenance costs, so NCS entrants rely upon commercial sponsors whose backing gives them exposure of their names and logos on the sponsored car.

NASCAR implemented a "charter system" in 2016, whereby all cars that technically and mechanically comply with NASCAR standards are eligible to race in a NCS event, but only cars that have a "charter" are guaranteed entry in a race.

Beginning in 2018, NASCAR's "Next Gen" program mandated that parts for NCS entrant cars be purchased from NASCAR's designated single-source vendors; the cost amounts to approximately $3 million per car per season. Under the "Next Gen" program, (1) ownership of the parts remains with NASCAR; and (2) car containing any "Next Gen" parts may not be entered into any non-NCS race.

In September 2024, NASCAR proposed that the charters for the 2025 racing season would entail, among other things, more sweeping noncompete restrictions for the racing teams and a reduced percentage of NASCAR's revenues from the NCS events. These conditions were grudgingly agreed to by all the racing teams except for 2311 Racing LLC (23XI) and Front Row Motorsports, Inc. (Front Row) (collectively, The Teams).

On October 2, 2024, The Teams sued NASCAR and its CEO in federal district court, alleging Sherman Act violations. The Teams' initial request for a Preliminary Injunction was denied without prejudice by the district court because the requisite irreparable harm was not shown. A month later, the district court granted a limited preliminary injunction whereby would allow The Teams to enter cars in all the 2025 NCS races under modified charter terms that excluded a contested provision that could have been construed as a release of all antitrust claims. This limited preliminary injunction was vacated on appeal by the circuit court, which found that The Teams' likelihood of success on the merits was not sufficiently clear.

The Teams then moved in the district court for a temporary restraining order (TRO) and a preliminary injunction, contending that the circuit court's vacatur of the district court's preliminary injunction reimposed a deadline for The Teams to comply with certain NASCAR provisions or else face permanent exclusion from NCS competition. That deadline would occur on July 16, 2025. The new motion was filed on July 14, 2025. The TRO was denied based upon representations by NASCAR that The Teams would be given opportunity to enter NCS events for the remainder of the season. On September 3, 2025, the court ruled on the preliminary injunction requested in that motion.

Analysis. The district court denied The Teams' motion for a preliminary injunction because no harm that would be irreparable was shown. Here, the trial is slated to occur within three months, and there are sufficient non-charter berths in each upcoming race so that The Teams will have the opportunity to compete as "open" entrants. Moreover, NASCAR has given the court further assurances that it would continue to preserve the status quo for the remainder of the season. Any future harm fears The Teams enunciated could, if the trial results warranted, be addressed through monetary remedies; additionally, the open berths for the upcoming races would give the court a non-monetary option for equitable relief if the facts established at trial so warranted.

The Case is No. 3:24-CV-00886-KDB-SCR.

Judge: Bell, K.

Attorneys: Benjamin S. Gordon (Winston & Strawn LLP) for 2311 Racing LLC. Ashley M. Bauer (Latham & Watkins LLP) for National Association for Stock Car Auto Racing, LLC.

Companies: 2311 Racing LLC; National Association for Stock Car Auto Racing, LLC

Cases: Antitrust NorthCarolinaNews