Federal Judge Denies Injunction to Michael Jordan’s Teams in Antitrust Lawsuit Against NASCAR
A federal judge denied this Wednesday the request of two teams, one of them owned by the legendary NBA player Michael Jordan, to obtain a preliminary injunction in their antitrust lawsuit against NASCAR. The goal was to be recognized as teams with “charter” status for the remainder of the season. Judge Kenneth Bell of the United States District Court for the Western District of North Carolina argued that there were no grounds to grant the injunction to 23XI Racing and Front Row Motorsports. This is because NASCAR committed last week not to sell the six “charters” that the teams previously held until the legal process is complete.Judge Bell also warned about the scenario NASCAR could face if the case is not resolved before the trial.The court believes it is best not to rule on the likelihood of one party prevailing over the other, and thus, potentially, bias the jury, unless necessary, which is not the case.
Judge Kenneth Bell
NASCAR issued a statement in which it stated that the decision “provides much-needed clarity for the remainder of the 2025 NASCAR season.” The trial is scheduled for December 1st. The lawyer for the plaintiff teams, Jeffrey Kessler, was not disappointed by the decision.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.
Judge Kenneth Bell
23XI Racing, owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by businessman Bob Jenkins, sued NASCAR for antitrust claims related to the “charter” system. A “charter” is the equivalent of a franchise and guarantees cars a place on the 40-car grid each week, as well as a significantly larger share of the payments. NASCAR, after more than two years of negotiations, presented the teams with its latest offer for “charter” extensions; 13 organizations signed the agreements, but 23XI and Front Row refused. The teams have also appealed for the “charter” status to be restored, but NASCAR argued in court last week that it has a buyer interested in one of the six “charters” previously held by 23XI and FRM, and that it plans to begin redistributing the “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 that states 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 he is in breach. Bell wrote in his Wednesday decision that “the loss of Charter’s ‘fixed’ payments and the uncertainty of ongoing relationships with pilots and sponsors may be offset with monetary damages at trial or are simply inherent in the risks associated with the lawsuit”.We are grateful that Judge Bell has made it clear that the status quo remains, 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.
Jeffrey Kessler
