Jordan vs. NASCAR: Judge Denies Injunction, Battle for Charters Continues

Judge denies request for Michael Jordan’s team equipment in legal dispute with NASCAR

A federal judge has denied the request of two teams, including one owned by NBA Hall of Famer Michael Jordan, to obtain a preliminary injunction 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 issue an injunction in favor of 23XI Racing and Front Row Motorsports. This is because NASCAR committed to not selling the six charters previously held by the teams until the legal process is complete.

“The court believes it is best not to predict the likelihood of success of the plaintiffs, to avoid biasing the jury, unless necessary, which is not the case here,” Judge Bell wrote.

Judge Kenneth Bell

The judge also warned about the scenario NASCAR could face 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 noted. NASCAR, through a statement, expressed that the decision “brings much-needed clarity to the rest 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 drives livelihoods, inspires generations, and delivers world-class competition,” NASCAR stated. “That commitment remains unwavering, and we will continue to uphold the integrity of NASCAR and preserve the values that have guided its growth.” “To the fans: We will not allow this lawsuit to distract us from what matters most: delivering the unforgettable moments they expect from our great sport and crowning the next NASCAR Cup Series champion on November 2nd.” The trial is scheduled for December 1st. “With the trial less than three months away and the season in its final laps, NASCAR has agreed to extend those representations, with 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 after trial, i.e., plaintiffs will be able to compete and the disputed permits will not be sold or otherwise transferred.” Jeffrey Kessler, lawyer for the teams suing NASCAR, was not disappointed by the decision.

“We are grateful that Judge Bell has made it clear that the status quo remains, protecting my clients’ rights to recover their permits if they prevail in the trial and ensuring their ability to continue competing during the 2025 season based on NASCAR’s commitments,” Kessler said.

Jeffrey Kessler, attorney for the teams

“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.” “We are ready to present our case at the trial in December.” 23XI Racing, the team owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by businessman 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 both a place in the 40-car field each week and a significantly larger share of payments. NASCAR, after more than two years of contentious negotiations, presented its final offer to the teams regarding permit extensions; 13 organizations signed the agreements, but 23XI and Front Row refused.

The two teams initially obtained a preliminary injunction to be recognized as authorized for this season until a jury verdict on the antitrust allegations. That was revoked, and 23XI and FRM are currently competing as “open” teams. NASCAR wants the money paid to the teams during the part of the season in which they were permitted to be returned.

The teams have also appealed for the permit status to be reinstated, but NASCAR argued in court last week that it has a buyer interested in one of the six permits previously held by 23XI and FRM, and plans to immediately begin redistributing the permits. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the charters, 23XI and FRM are no longer at risk of irreparable harm. The teams countered on Tuesday that the threat still exists “due to the risk of claims for breach of contract from their irreplaceable drivers and the loss of sponsors in the absence of charter 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 permission. Jeffrey Kessler, the lawyer for both teams, indicated in court that Reddick has notified 23XI that they are in breach. Bell wrote in his Wednesday decision that “the loss of ‘fixed’ permit payments and the uncertainty of ongoing 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.”