Michael Jordan's NASCAR team fights
for charter status amid explosive lawsuit
[September 03, 2025]
By JENNA FRYER
CHARLOTTE, N.C. (AP) — Two NASCAR teams, one owned by NBA Hall of
Famer Michael Jordan, on Tuesday argued to a federal judge why the
organizations still should be issued a preliminary injunction to be
recognized as chartered organizations until their antitrust suit
against the stock car racing series is finished.
The 11-page filing in U.S. District Court for the Western District
of North Carolina was in response to NASCAR notifying Judge Kenneth
Bell it would not re-distribute any charters to new participants
while the case heads toward its Dec. 1 court date. NASCAR's
backtrack Friday came one day after an acrimonious hearing that
included the disclosure of expletive-laden emails and text messages
from Jordan and other high-profile litigants.
23XI Racing, the team owned by Jordan and three-time Daytona 500
winner Denny Hamlin, and Front Row Motorsports, owned by
entrepreneur Bob Jenkins, are suing NASCAR over antitrust claims
regarding the charter system. A charter is the equivalent of a
franchise and guarantees chartered cars both a spot in the 40-car
field each week, as well as a significantly larger chunk of payouts.
NASCAR last September, after more than two years of contentious
negotiations, presented teams with its final offer on charter
extensions; 13 organization signed the agreements, but 23XI and
Front Row refused.
The two teams initially won a preliminary injunction to be
recognized as chartered for this season until a jury verdict on the
antitrust allegations. That was overturned, and 23XI and FRM are
currently competing as “open” teams. NASCAR wants the money back the
teams were paid during the portion of the season they were
chartered.
The teams also have appealed to have the chartered status
reinstated, but NASCAR argued in court last week it has an
interested buyer for one of the six charters previously held by 23XI
and FRM, and it plans to immediately begin redistributing the
charters. NASCAR backtracked after Thursday's hearing, and a ruling
on the preliminary injunction is expected to come from Bell this
week.
NASCAR maintains that in holding off on redistributing charters,
23XI and FRM are no longer in danger of suffering irreparable harm.
The teams countered Tuesday the threat still exists “because of the
risk of breach claims from their irreplaceable drivers and loss of
sponsors in the absence of charter rights.”
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Team owner Michael Jordan looks on during a NASCAR Cup Series auto
race at Darlington Raceway, Sunday, Aug. 31, 2025, in Darlington,
S.C. (AP Photo/Matt Kelley)
Tyler Reddick of 23XI has a clause in his contract
that says the team would be in breach if his Toyota is not
chartered. Jeffrey Kessler, the attorney for the two teams,
indicated in court that Reddick has notified 23XI it is in breach.
Kessler also argued that NASCAR agreeing not to redistribute any
charters now “does not moot Plaintiffs' Motion for Preliminary
Injunction or eliminate Plaintiffs' irreparable harm if no relief is
provided.”
The 13 teams that are chartered are becoming frustrated with the
case — Bell warned last week the entire charter system is in danger
of imploding if a settlement is not reached — and the non-suing
teams believe their valuations are being harmed by the litigation.
Dan Towriss, the majority owner of the Spire Motorsports' NASCAR
team, as well as owner of Cadillac F1, Andretti Global and other
motorsports properties, said he was “very disappointed with the
direction” the lawsuit has taken.
“We had meetings with the NASCAR brass a few weeks ago and it's ‘How
can we help?’” Towriss said at last weekend's IndyCar season finale.
“What we saw (in court), what was released in that case is very
inconsistent with what they (NASCAR) say privately. And so I need to
understand, ‘Who am I dealing with? Which one is it? Is it the
people we meet with privately, or is what you say when we’re not
around?'”
Towriss said he'd also like to see NASCAR reach a settlement with
23XI and FRM.
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