Judge Denies Injunction to Michael Jordan’s Team in Lawsuit Against NASCAR

Federal Judge Denies Injunction to Michael Jordan’s Teams in Antitrust Lawsuit Against NASCAR

A federal judge has denied a request for a restraining order filed 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 preliminary injunction to 23XI Racing and Front Row Motorsports. NASCAR committed last week not to sell the six team contracts until the legal process concludes.

Judge Bell has repeatedly emphasized that he prefers not to rule on the likelihood of one party prevailing over the other, and reiterated this position on Wednesday.

Judge Kenneth Bell

Bell also warned about the possible consequences in the NASCAR realm 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, for the fans.

Judge Kenneth Bell

In a statement, NASCAR stated that the decision “brings much-needed 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. That commitment remains unwavering, and we will continue to uphold the integrity of NASCAR and preserve the values that have guided its growth.

NASCAR

The trial is scheduled for December 1st. Jeffrey Kessler, lawyer for the teams suing NASCAR, expressed that the decision was not necessarily disappointing.

We are grateful that Judge Bell has made it clear that the status quo remains, protecting my clients’ rights to recover their contracts if they prevail at trial and ensuring their ability to continue competing during the 2025 season based on NASCAR’s commitments. 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

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 chartered cars a place on the 40-car grid each week, as well as a significantly larger share of payments. NASCAR presented its final offer on contract extensions to the teams after more than two years of contentious negotiations; 13 organizations signed the agreements, but 23XI and Front Row refused. The teams initially obtained a preliminary injunction to be recognized as contracted for this season until a jury 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 portion of the season in which they were contracted to be returned. The teams have also appealed for the reinstatement of the contracted status, but NASCAR argued before the court last week that it has a buyer interested in one of the six contracts previously held by 23XI and FRM, and plans to immediately begin redistributing the contracts. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from reallocating the contracts, 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 contract rights.” Tyler Reddick, from 23XI, has a clause in his contract that states the team would be in breach if his Toyota is not contracted. 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 payments from ‘fixed’ contracts and the uncertainty of ongoing relationships with drivers and sponsors can be offset by monetary damages in the trial or is simply inherent in the risks associated with the lawsuit.”