Federal Judge Denies Injunction to Michael Jordan’s Teams in Litigation with NASCAR
A federal judge has denied a preliminary injunction requested by two teams, one of which is owned by NBA legend Michael Jordan, in their antitrust lawsuit against NASCAR. The decision, issued on Wednesday, prevents the teams from being recognized as teams with guaranteed participation rights for the remainder of the season. Judge Kenneth Bell of the U.S. District Court for the Western District of North Carolina argued that there were no grounds to issue 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 litigation concludes.“The court considers that it is best not to provide its forecast on the likelihood of success of the plaintiffs on the merits of the matter, and thereby potentially bias the jury, unless it is necessary to do so, which is not the case here,” wrote Judge Bell.
Judge Kenneth Bell
Judge Bell also warned about the scenario that could arise in NASCAR if the case is not resolved before the trial. “The uncertainty about what the 2026 season will be like, unfortunately, exists not only for the parties, but also for the other teams, drivers, support teams, sponsors, broadcasters and, most regrettably, for the fans,” he pointed out.
NASCAR, in a statement, said the decision “brings much-needed clarity for the remainder of the 2025 NASCAR season.”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 following trial, meaning that the plaintiffs will be able to compete and the disputed participation rights will not be sold or otherwise transferred.” 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 by 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 Michael 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 charter system. A charter is the equivalent of a franchise and guarantees cars with charters a place on the 40-car grid each week, as well as a significantly larger share of payments. NASCAR presented its final offer on participation rights extensions to the teams last September, after more than two years of contentious negotiations; 13 organizations signed the agreements, but 23XI and Front Row refused. The teams have also appealed for the reinstatement of the charter status, but NASCAR argued to the court last week that it has a buyer interested in one of the six participation rights previously held by 23XI and FRM, and plans to begin redistributing the participation rights immediately. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the participation rights, 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 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 will 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 drivers and sponsors can be offset by monetary damages in the trial or are simply inherent in the risks associated with the lawsuit”.“We appreciate 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.”
Jeffrey Kessler, attorney for the teams
