LDN Sports - NASCAR | 23XI Lawsuit

Federal judge denies injunction for Michael Jordan's team in NASCAR antitrust case

[September 04, 2025] By JENNA FRYER

CHARLOTTE, N.C. (AP) — A federal judge on Wednesday denied two teams — one owned by NBA Hall of Famer Michael Jordan — a preliminary injunction in their antitrust suit against NASCAR to be recognized as chartered teams for the remainder of the season.

Judge Kenneth Bell of the U.S. District Court for the Western District of North Carolina said there was no reason to issue 23XI Racing and Front Row Motorsports the injunction because NASCAR last Friday vowed not to sell the six charters the teams previously held until the end of the legal battle.

Bell has repeatedly said he doesn't want to rule on the likelihood of one side prevailing over the other, and reiterated that Wednesday.

“As the Court noted at the hearing on this motion, the Court believes that it is best not to provide its forecast of the Plaintiffs' likelihood of success on the merits, and thereby potentially bias the jury pool, unless it is necessary to do so, which is not here,” Bell wrote.

He also cautioned on what the landscape of NASCAR may look like if the case is not settled before trial.

“The uncertainty about what the 2026 season will look like unfortunately exists not just for the Parties, but for the other teams, drivers, crews, sponsors, broadcasters, and most regrettably, the fans,” he wrote.

NASCAR in a statement said the ruling "brings much-needed clarity to the remainder of the 2025 NASCAR season.

“For nearly 80 years, NASCAR and the France family have championed a bold vision by taking many personal and financial risks to build a sport that fuels livelihoods, inspires generations, and delivers world-class competition,” NASCAR said. "That commitment remains unwavering, and we will continue to defend the integrity of NASCAR and preserve the values that have guided its growth.

"To the fans: We won’t let this lawsuit distract from what matters most — delivering the unforgettable moments you’ve come to expect from our great sport and crowning the next NASCAR Cup Series champion on November 2.”

Trial is set for Dec. 1.

“With trial in this matter now less than three months away and the season on its proverbial last laps, NASCAR has agreed to extend those representations, in material effect,” Bell wrote in denying the motion for a preliminary injunction.

“This will effectively maintain the status quo pending a final decision on the merits and any permanent injunctive relief following trial (that is, Plaintiffs will be able to race and disputed Charters will not be sold or otherwise transferred.”

Jeffrey Kessler, attorney for the teams suing NASCAR, wasn't necessarily disappointed by the ruling.

“We are grateful that Judge Bell has made clear that the status quo is being maintained — protecting my clients’ rights to regain their charters if they prevail at trial and ensuring their ability to continue racing through the 2025 season based on NASCAR’s commitments," Kessler said. "Equally important, Judge Bell reaffirmed his broad power to order meaningful changes in NASCAR should we succeed, so that teams, drivers, sponsors, and fans can benefit from a sport positioned for long-term growth and restored competition.

[to top of second column]

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)

"We are ready to present our case at trial in December.”

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.”

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.

Bell wrote in his Wednesday decision that “the loss of the ‘fixed’ Charter payouts and the uncertainty of ongoing relationships with drivers and sponsors can either be compensated with money damages at trial or is simply inherent in the risks associated with the lawsuit.”

Back to top