Judge Denies Request for Michael Jordan’s Teams in Antitrust Lawsuit Against NASCAR
A federal judge dismissed the request of two teams, one owned by NBA legend Michael Jordan, in their antitrust lawsuit against NASCAR. The decision prevents the teams from being recognized as franchise-status teams for the rest of the season. Judge Kenneth Bell of the U.S. District Court for the Western District of North Carolina argued that there was no basis to grant a preliminary injunction to 23XI Racing and Front Row Motorsports. This is because NASCAR committed to not selling the six franchises the teams previously owned until the legal battle is over.Judge Bell also warned about the NASCAR landscape if the case is not resolved before the trial. He pointed out the uncertainty facing all parties involved, including teams, drivers, sponsors and, especially, fans. NASCAR, in a statement, stated that the decision provides clarity for the remainder of the 2025 season. The organization reiterated its commitment to defend the integrity of NASCAR and preserve the values that have guided its growth. In addition, it assured fans that the lawsuit will not distract them from offering unforgettable moments and crowning the next NASCAR Cup Series champion on November 2nd. The trial is scheduled for December 1st. The attorney for the plaintiff teams, Jeffrey Kessler, expressed his gratitude because Judge Bell has made it clear that the status quo remains, protecting his clients’ rights to recover their franchises if they win the trial and ensuring their participation in the races during the 2025 season. Kessler also reaffirmed the judge’s ability to order significant changes in NASCAR if they are successful, benefiting teams, drivers, sponsors, and fans. 23XI Racing, the team owned by Michael Jordan and Denny Hamlin, along with Front Row Motorsports, owned by Bob Jenkins, are suing NASCAR over antitrust claims related to the franchise system. A franchise guarantees cars a place in the weekly competition and a significant portion of the payments. After negotiations, NASCAR presented its final offer on franchise extensions to the teams. 13 organizations signed the agreements, but 23XI and Front Row refused.The court considers that it is better not to predict the likelihood of success of the plaintiffs on the merits of the case, and thus, possibly bias the jury, unless it is necessary to do so, which is not the case here.
Judge Kenneth Bell
The teams initially obtained a preliminary injunction to be recognized as franchisees for this season until the jury’s verdict on the antitrust allegations. That order was overturned, and 23XI and FRM currently compete as “open” teams. NASCAR seeks to recover the money paid to the teams during the portion of the season in which they were franchised.
Teams have also appealed for franchise status to be restored, but NASCAR argued in court that it has a buyer interested in one of the six franchises previously held by 23XI and FRM, and plans to redistribute the franchises immediately. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the franchises, 23XI and FRM are no longer at risk of irreparable harm. The teams argued that the threat still exists due to the risk of claims for breach of contract from their drivers and the loss of sponsors in the absence of franchise rights. Tyler Reddick, of 23XI, has a clause in his contract stating that the team will be in breach if his Toyota is not franchised. The lawyer for both teams, Jeffrey Kessler, indicated in court that Reddick has notified 23XI that it is in breach. Bell wrote in his Wednesday decision that the loss of franchise payments and the uncertainty of relationships with drivers and sponsors can be offset by monetary damages in the trial, or are simply inherent in the risks associated with the lawsuit.
