Jordan vs. NASCAR: Judge Denies Injunction, Legal Battle Continues

Judge Denies Restraining Order to Michael Jordan’s Teams in Lawsuit Against NASCAR

A federal judge on Wednesday denied a preliminary injunction sought by two teams, one of which is owned by NBA Hall of Famer Michael Jordan, in their antitrust lawsuit against NASCAR. Judge Kenneth Bell, of the United States District Court for the Western District of North Carolina, argued that there were no reasons to grant the injunction to 23XI Racing and Front Row Motorsports. This is because NASCAR committed to not selling the six licenses that the teams held until the legal battle is over. Judge Bell has reiterated on several occasions that he prefers not to comment on the likelihood of one party prevailing over the other, and he reaffirmed this on Wednesday.

“The Court finds that it is best not to provide its prognosis on the likelihood of success of the plaintiffs on the merits, and thereby potentially bias the jury, unless necessary, which is not the case here.”

Judge Kenneth Bell

He also warned about what the NASCAR landscape could look like 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, teams, sponsors, broadcasters and, most regrettably, the fans.”

Judge Kenneth Bell

In a statement, NASCAR stated that the ruling “provides the necessary clarity for the remainder 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 said. “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 in this matter now 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 motion for injunctive relief. “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 licenses will not be sold or otherwise transferred.” Jeffrey Kessler, lawyer for the teams suing NASCAR, was not necessarily disappointed by the ruling.

“We are grateful that Judge Bell has made it clear that the status quo remains in place, protecting my clients’ rights to recover their licenses 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 to 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

“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 licensing system. A license is the equivalent of a franchise and guarantees licensed cars a place on the 40-car grid each week, as well as a significantly larger share of payments. NASCAR, last September, after more than two years of contentious negotiations, presented the teams with its final offer on license extensions; 13 organizations signed the agreements, but 23XI and Front Row refused.

The two teams initially won a restraining order to be recognized as licensed teams for this season until the jury’s 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 licensed to be returned.

The teams have also appealed for the license status to be reinstated, but NASCAR argued in court last week that it has a buyer interested in one of the six licenses previously held by 23XI and FRM, and plans to begin redistributing the licenses immediately. NASCAR backtracked after Thursday’s hearing. NASCAR argues that by refraining from redistributing the licenses, 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 license rights.” Tyler Reddick, from 23XI, has a clause in his contract that states the team will be in breach if his Toyota is not licensed. 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’ license payments and the uncertainty of ongoing relationships with drivers and sponsors may be offset by monetary damages at trial or is simply inherent in the risks associated with the lawsuit.”