Judge denies injunction in Michael Jordan’s lawsuit against NASCAR

Federal Judge Denies Injunction to Michael Jordan’s Teams in Litigation with NASCAR

A federal judge issued a crucial ruling in the legal dispute between NASCAR and two racing teams, one of which is owned by basketball legend Michael Jordan. The decision, announced on Wednesday, denies the request for a preliminary injunction filed by 23XI Racing and Front Row Motorsports. The request sought for both teams to be recognized as “charter” status teams for the remainder of the current season. Judge Kenneth Bell, of the United States District Court for the Western District of North Carolina, argued that there was no reason to grant the injunction, given that NASCAR committed to not selling the six “charters” that the teams previously held until the legal battle concludes.

Judge Bell has reiterated that he does not wish to rule on the likelihood of one party prevailing over the other, and he reiterated that on Wednesday.

Judge Kenneth Bell

Judge Bell 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.

Judge Kenneth Bell

In an official statement, NASCAR expressed that the court 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, expressed that the decision was not necessarily disappointing.

We appreciate Judge Bell making it clear that the status quo is maintained, protecting my clients’ rights to recover their charters if they prevail in the trial and ensuring their ability to continue competing during the 2025 season based on NASCAR’s commitments.

Jeffrey Kessler

23XI Racing, the team owned by Jordan and Denny Hamlin, three-time Daytona 500 winner, along with Front Row Motorsports, led by Bob Jenkins, filed the lawsuit against NASCAR for antitrust claims related to the “charters” system. A “charter” is equivalent to a franchise and guarantees cars a place on the 40-car grid each week, as well as a significantly larger share of payments. NASCAR, after more than two years of negotiations, presented its final offer on “charter” extensions to the teams. 13 organizations signed the agreements, but 23XI and Front Row refused. The teams have also appealed to have their “charter” status restored, but NASCAR argued in court that it has a buyer interested in one of the six “charters” previously held by 23XI and Front Row, and plans to redistribute the “charters” immediately. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the “charters”, 23XI and FRM are no longer at risk 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 will be in breach if his Toyota doesn’t have a “charter”.