Judge denies request for Michael Jordan’s team equipment in antitrust lawsuit against NASCAR
A federal judge dismissed the request of two teams, one owned by NBA legend Michael Jordan, to obtain a preliminary injunction in their antitrust lawsuit against NASCAR. The decision, made on Wednesday, affects the request for recognition as participating teams for the remainder of the season. Judge Kenneth Bell of the U.S. District Court for the Western District of North Carolina justified his decision by pointing out that there were no grounds to grant the injunction requested by 23XI Racing and Front Row Motorsports. This is because NASCAR committed to not selling the six participation rights that the teams previously held until the legal process concludes.Bell also warned about the landscape NASCAR could face if the case is not resolved before trial.Judge Bell has reiterated on several occasions his position of not wanting to rule on the likelihood of success of one party over the other, and reaffirmed it on Wednesday.
Judge Kenneth Bell
In a statement, NASCAR expressed that the ruling “provides the necessary clarity for the remainder of the 2025 NASCAR season.”The uncertainty about how the 2026 season will be unfortunately exists not only for the parties, but also for the other teams, drivers, crews, sponsors, broadcasters and, unfortunately, the fans.
Judge Kenneth Bell
The trial is scheduled for December 1st. Jeffrey Kessler, lawyer for the teams suing NASCAR, was not necessarily disappointed by the ruling.For nearly 80 years, NASCAR and the France family have championed a bold vision, taking many personal and financial risks to build a sport that drives livelihoods, inspires generations, and delivers world-class competition. That commitment remains unwavering, and we will continue to uphold the integrity of NASCAR and preserve the values that have guided its growth.
NASCAR
23XI Racing, the team owned by Jordan and Denny Hamlin, three-time Daytona 500 winner, and Front Row Motorsports, owned by businessman Bob Jenkins, are suing NASCAR over antitrust claims related to the participation rights system. A participation right is the equivalent of a franchise and guarantees cars with rights a place in the 40-car field each week, as well as a significantly larger share of the payments. NASCAR, after more than two years of contentious negotiations, presented its final offer to the teams regarding the extensions of the charter agreements; 13 organizations signed the agreements, but 23XI and Front Row refused. The teams have also appealed for the reinstatement of the participation rights status, but NASCAR argued in court last week that it has an interested buyer for one of the six participation rights previously held by 23XI and FRM, and plans to begin redistributing the participation rights immediately. NASCAR backed down after Thursday’s hearing. NASCAR maintains that by suspending the redistribution of participation rights, 23XI and FRM are no longer at risk of suffering irreparable harm. The teams argued on Tuesday that the threat still exists “due to the risk of claims for breach of contract by their irreplaceable drivers and the loss of sponsors in the absence of participation rights.” Tyler Reddick, from 23XI, has a clause in his contract that states the team would be in breach if his Toyota doesn’t have participation rights. Jeffrey Kessler, the lawyer for both teams, indicated in court that Reddick has notified 23XI that it is in breach. Bell wrote in his Wednesday decision that “the loss of ‘fixed’ participation rights payments and the uncertainty of ongoing relationships with the pilots and sponsors can be offset with monetary damages in the trial or are simply inherent in the risks associated with the lawsuit”.We are grateful that Judge Bell has made it clear that the status quo is maintained, protecting my clients’ rights to recover their participation rights if they win at trial and ensuring their ability to continue competing during the 2025 season based on NASCAR’s commitments. Equally important, Judge Bell reaffirmed his broad power to order significant changes in NASCAR if we are successful, so that teams, drivers, sponsors, and fans can benefit from a sport positioned for long-term growth and restored competition.
Jeffrey Kessler
