Michael Jordan's race team just
scored a major win against NASCAR
[November 05, 2025]
By JENNA FRYER
CHARLOTTE, N.C. (AP) — A federal judge on Tuesday issued a key
victory for two race teams, one owned by Michael Jordan, that
further pressures NASCAR to settle the antitrust lawsuit filed
against it by 23XI Racing and Front Row Motorsports.
NASCAR Commissioner Steve Phelps said last week the series is
“trying our hardest” to settle the federal antitrust lawsuit with
the two teams suing in the most expansive comments yet from the
defendants.
U.S. District Judge Kenneth Bell ruled Tuesday in favor of 23XI,
owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and
Bob Jenkins-owned Front Row, on an argument over the market
definition of “premier stock-car racing." Bell found that NASCAR
controls the market and NASCAR's argument that teams can race in
other series is moot.
The teams said in alleging the relevant market for premier stock car
racing teams that “NASCAR’s Cup Series is currently the only buyer.”
The argument was backed by the the expert opinion of Dr. Daniel
Rascher, who concluded that “premier stock car racing” is a distinct
form of automobile racing, and other types of motorsports like
Formula 1 and IndyCar, and all lower levels of stock car racing, are
not an equal substitute to NASCAR.
NASCAR in a counterclaim said the teams unlawfully conspired in
banding together for negotiations on new charter agreements, but
Bell found "NASCAR deliberate(ly), clear(ly) and unambiguous(ly)”
alleged that the relevant market is “the market for entry of cars
into NASCAR Cup Series races in the United States and any other
location where a Cup Series race is held.”
“The same transaction – the sale and purchase of premier stock car
racing services – cannot be a different relevant market depending
only on which side is complaining,” Bell wrote. “Most simply put,
NASCAR made a strategic decision in asserting its Counterclaim and
must now live with the consequences.”
The lawsuit was filed a year ago by 23XI Racing and Front Row Racing
when they were the only two organizations out of 15 to not sign
extensions on new charter agreements.
The new charter agreements were presented to the teams at the start
of the 2024 playoffs with a deadline for them to sign. It followed
more than two years of tense negotiations over the charters, which
are at the heart of NASCAR’s business model as they guarantee
revenue and access to weekly races.
23XI and Front Row likely will go out of business without them and
are racing this season unchartered, which comes with significantly
reduced prize money.
Other teams have called for a settlement to move forward, but
mediation sessions and private negotiations have not worked. The
trial is scheduled for Dec. 1.
“We are very pleased with the Court’s decision today, ruling in our
favor. Not only does it deny NASCAR’s motion for summary judgment,
but it also grants our partial summary judgment motion, finding that
NASCAR has monopoly power in a properly defined market," said
Jeffrey Kessler, the attorney representing 23XI and Front Row.
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Kyle Larson leads the field before a NASCAR Cup Series auto race
Sunday, Nov. 2, 2025, in Avondale, Ariz. (AP Photo/Rick Scuteri)
"This means that the trial can now be focused on
whether NASCAR has maintained that power through anticompetitive
acts and used that power to harm teams. We’re prepared to present
our case to the jury and are focused on obtaining a verdict that
benefits all of the teams, partners, drivers, and the fans.”
NASCAR in its own statement touted the commitment it has shown into
building NASCAR into the top motorsports series in the United States
since its 1948 formation. Phelps did the same last week while
reading from a statement that ran more than six minutes; he defended
the Florida-based France family who founded and controls NASCAR and
most of the tracks the series uses for events.
“NASCAR looks forward to proving that it became the leading
motorsport in the United States through hard work, risk-taking, and
many significant investments over the past 77 years," NASCAR said in
a statement. "The antitrust laws encourage this — and NASCAR has
done nothing anticompetitive in building the sport from the ground
up since 1948.
"While we respect the Court’s decision, we believe it is legally
flawed and we will address it at trial and in the Fourth Circuit if
necessary. NASCAR believes in the charter system and will continue
to defend it from 23XI and Front Row’s efforts to claim that the
charter system itself is anticompetitive.”
Most of the organizations that did sign the new charter agreements
last year submitted declarations to the court in support of the
charter system and calling for a settlement to the case. All the
teams want the charters to become permanent, which NASCAR refused to
budge on during negotiations for the current agreement.
Should a settlement not be reached before the trial and NASCAR
loses, the entire charter system is at risk of being disbanded or
overhauled. Teams are frustrated by that threat, and it is
understood that NASCAR has since agreed to make the charters
permanent and the snag in settlement talks is the amount of money
23XI and Front Row is demanding in damages and legal fees.
Teams are concerned that NASCAR's entire framework could be torn
apart by a loss and are aggravated that it would be over the
monetary demands being made by 23XI and Front Row.
Bell last week issued another win for 23XI and Front Row when he
dismissed NASCAR’s countersuit against Curtis Polk, the longtime
business manager for Jordan and one of 23XI’s owners.
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