Court ruling reveals 23XI Racing was set to lose $51.31 billion worth sponsor over the lawsuit
The US Court ruling on the FRM&23XI vs NASCAR has revealed that the teams were close to losing their biggest sponsors.
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Denny Hamlin and Bubba Wallace (Via IMAGO)
The 23XI Racing-Front Row Motorsports alliance tasted their first victory in the legal battle against NASCAR. They filed a lawsuit alleging the premier stock racing sanctioning body of monopoly and alongside filed an injunction motion to let then race as charter teams in the 2025 season. Though they lost the case on the first hearing, the alliance won the appeal.
The court revealed the factors that made it to take the decision. 23XI Racing was set to lose their star drivers Bubba Wallace and Tyler Reddick. The ruling also revealed that Michael Jordan’s team was also set to lose their primary sponsor Monster Energy, all of which that could cause immediate harm for the team, forcing the court to side with FRM-23XI.
The documents revealed that Monster Energy that sponsor Reddick and 23XI’s new driver Riley Herbst, was delaying their consumer promotion events because of the uncertainty. Losing a sponsor that has been with them since 2022, would have been a huge hit on the team’s finances.
On November 15, 2024, Monster Energy informed 23XI that it decide, ‘to delay [its] ‘Ultimate Race Weekend’ Consumer Promotion to a later date’ because ‘the uncertainty around 23XI, Tyler [Reddick], and the relationship with NASCAR for the start of the season’ makes it ‘just too big of a risk.’
The Court documents revealed.
FRM was also a victim of the situation
The TRD teams wasn’t the only victim of the situation. FRM was set to lose their prominent sponsor Love’s Travel Stops. They had contact with the team’s ability to meet contractual obligations in the 2025 season if they don’t have charters.
To the same effect, Front Row’s largest sponsor, Love’s Travel Stops, emailed the team on November 22, 2024 stating its concern about Front Row’s ‘ability to meet contractual obligations next season’ given ‘the numerous uncertainties raised around … not having a team Charter, as the 2025 season approaches.’
The court documents read.
The Judge semes to be convinced that lack of chartered cars impacted FRM-23XI’s sponsor relationship and finances. But NASCAR doesn’t seem to agree with it as they are altered filed an immediate motion to stay the injunction verdict.
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Justin P Joy
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