Judge Denies Injunction to Michael Jordan’s Teams in Antitrust Lawsuit Against NASCAR
A federal judge dismissed the request from two teams, one of which is owned by NBA Hall of Famer Michael Jordan, for a preliminary injunction in their antitrust lawsuit against NASCAR. The goal was for them to be recognized as teams with charters 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 justification for issuing the injunction to 23XI Racing and Front Row Motorsports. This is because NASCAR committed to not selling the six charters that the teams previously held until the legal battle concludes.The judge also warned about the scenario that NASCAR could present 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 wrote. NASCAR, through a statement, stated that the decision “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 fuels 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 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 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 statutes will not be sold or otherwise transferred.” Jeffrey Kessler, lawyer for the teams suing NASCAR, was not necessarily disappointed by the decision.Judge Bell has reiterated on several occasions his reluctance to rule on the likelihood of one party prevailing over the other.
Judge Kenneth Bell
“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 cars with charters a spot on the 40-car grid each week, as well as a significantly larger share of payments. NASCAR presented its final offer on the charter extensions to the teams after more than two years of contentious negotiations; 13 organizations signed the agreements, but 23XI and Front Row refused.“We are grateful that Judge Bell has made it clear that the status quo remains, protecting my clients’ rights to recover their statutes if they prevail in the trial and ensuring their ability to continue competing during the 2025 season based on NASCAR commitments,” Kessler said.
Jeffrey Kessler
The two teams initially obtained a preliminary injunction to be recognized as teams with charters for this season until a jury verdict was issued on the antitrust allegations. That was revoked, and 23XI and FRM are currently competing as “open” teams. NASCAR wants the money that was paid to the teams during the part of the season in which they had charters to be returned.
Teams have also appealed for the charter status to be reinstated, 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 plans to immediately begin redistributing the charters. 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 responded on Tuesday 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 will be in breach if his Toyota doesn’t have statutes. 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’ statute payments and the uncertainty of ongoing relationships with pilots and sponsors may be offset by monetary damages in the trial or is simply inherent in the risks associated with the lawsuit”.
