Judge Denies Michael Jordan’s Team’s Request in Legal Dispute with NASCAR
A federal judge 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. The court’s decision prevents the teams from being recognized as teams with guaranteed participation rights 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 requested by 23XI Racing and Front Row Motorsports. This is because NASCAR committed to not selling the six participation rights that the teams previously held until the legal process is complete.The judge also warned about what NASCAR’s landscape could look like if the case is not resolved before trial. NASCAR issued a statement in which it stated that the decision “provides the necessary clarity for the remainder of the 2025 NASCAR season.” The trial is scheduled for December 1st. Jeffrey Kessler, lawyer for the teams suing NASCAR, expressed his satisfaction with Judge Bell’s decision to maintain the status quo.Judge Bell has reiterated that he prefers not to comment on the likelihood of one party prevailing over the other, to avoid influencing the jury.
Judge Kenneth Bell
23XI Racing, the team owned by Michael Jordan and three-time Daytona 500 winner Denny Hamlin, along with Front Row Motorsports, owned by businessman Bob Jenkins, are suing NASCAR over antitrust claims related to the charter system. A charter is equivalent to 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, after more than two years of negotiations, presented its final offer to the teams regarding the extensions of the participation rights; 13 organizations signed the agreements, but 23XI and Front Row refused. The teams have also appealed for the reinstatement of the participation rights status, but NASCAR argued in court last week that it has an interested buyer for one of the six participation rights previously held by 23XI and FRM, and plans to immediately begin redistributing the rights. NASCAR maintains that by refraining from redistributing the participation rights, 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 by their irreplaceable drivers and the loss of sponsors in the absence of participation rights.” Tyler Reddick, from 23XI, has a clause in his contract stating that the team would be in breach if his Toyota doesn’t have a right to participate. 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’ participation fee payments and the uncertainty of ongoing relationships with drivers and sponsors can be offset by monetary damages in the trial or are simply inherent in the risks associated with the lawsuit”.We are ready to present our case at the trial in December.
Jeffrey Kessler, lawyer for the teams
