Federal Judge Denies Restraining Order to Michael Jordan’s Teams in Antitrust Lawsuit Against NASCAR
A federal judge issued a crucial ruling in the legal dispute between NASCAR and two teams, one of which is owned by NBA legend Michael Jordan. The judge denied a preliminary injunction sought by 23XI Racing and Front Row Motorsports in their antitrust lawsuit against NASCAR. Judge Kenneth Bell of the U.S. District Court for the Western District of North Carolina argued that there were no grounds to grant the injunction to the teams. This is because NASCAR committed to not selling the six charters that the teams previously held until the legal process is complete.The judge also warned about the NASCAR landscape if the case is not resolved before the trial. “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, most regrettably, the fans,” he wrote. NASCAR issued a statement saying the ruling “provides the necessary clarity for the remainder of the 2025 NASCAR season.”Judge Bell has reiterated that he does not wish to rule on the likelihood of one party prevailing over the other.
Judge Kenneth Bell
The trial is scheduled for December 1st. “With the trial in this matter less than three months away and the season in its final laps, NASCAR has agreed to extend those representations, in effect material,” Bell wrote in denying the request for a preliminary injunction. “This will effectively maintain the status quo pending a final decision on the merits and any permanent injunctive relief after trial, i.e., the plaintiffs will be able to compete and the disputed charters will not be sold or otherwise transferred.” Jeffrey Kessler, lawyer for the teams suing NASCAR, expressed his satisfaction with the decision. “We are grateful that Judge Bell has made it clear that the status quo is maintained, protecting my clients’ rights to recover their charters if they win at trial and ensuring their ability to continue competing during the 2025 season based on NASCAR’s commitments,” Kessler said. “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.” 23XI Racing, the team owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, are suing NASCAR over antitrust claims related to the charter system. A charter is the equivalent of a franchise and guarantees charter cars a place on the 40-car grid each week, as well as a significantly larger share of payments. NASCAR, after more than two years of negotiations, presented the teams with its final offer on charter extensions; 13 organizations signed the agreements, but 23XI and Front Row refused. Teams have also appealed for their charter status to be reinstated, but NASCAR argued in court that it has an interested buyer for one of the six charters previously held by 23XI and FRM, and plans to begin redistributing charters immediately. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the charters, 23XI and FRM are no longer in danger of suffering irreparable harm. The teams argued 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 charter rights.” Tyler Reddick, from 23XI, has a clause in his contract stating that the team would be in breach if his Toyota doesn’t have a charter. 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’ charter payments and the uncertainty of ongoing relationships with pilots and sponsors may be offset by monetary damages at trial or is simply inherent in the risks associated with the lawsuit.”NASCAR is committed to upholding the integrity of NASCAR and preserving the values that have guided its growth.
NASCAR
