NASCAR: Charters Suspended Due to Lawsuit, Jordan vs. Racing Series

NASCAR Halts Ballot Redistribution Amid Legal Battle

In an unexpected turn within the legal dispute involving two racing teams, NASCAR has assured a federal court that it will not redistribute any of the schedules while the antitrust case continues its course. The promise came after an intense hearing where 23XI Racing and Front Row Motorsports argued the need for a precautionary measure to recover six licenses until the trial, scheduled for December 1st. The charters, equivalent to franchises in other sports, are crucial for participation in NASCAR and guarantee greater economic benefits to the teams. 23XI Racing, owned by basketball legend Michael Jordan and Denny Hamlin, and Front Row Motorsports, led by Bob Jenkins, are looking to secure their charters for 2025. Judge Kenneth Bell had questioned NASCAR about the possibility of selling one of the four “open” charters or establishing a contingency plan for the return of the charters to 23XI and FRM in case of losing the trial. NASCAR’s recent statement, although voluntary, seeks to focus on the growth of the sport and preparation for the trial. NASCAR is committed to not issuing, selling, or leasing any additional charters for the 2025 Cup season, and to not exceed four additional charters for the 2026 season. Jeffrey Kessler, lawyer for 23XI and FRM, has downplayed NASCAR’s promise, and will respond to the filing next Tuesday.

“Plaintiffs also do not agree that the defendants’ notice and representations demonstrate that the plaintiffs do not face irreparable harm,” Kessler stated.

Jeffrey Kessler

NASCAR’s decision does not prevent Judge Bell from issuing an injunction in favor of the teams, who seek to demonstrate the irreparable harm they would suffer without the credentials. 23XI driver Tyler Reddick has a clause in his contract that allows him to leave the team if his car is not accredited, and Kessler indicated that both Reddick and the sponsors have notified that they are in breach. The tense relationship between NASCAR and the teams was evident in emails and text messages with offensive language, revealing the intensity of the dispute. Of the 15 organizations accredited in NASCAR, only 23XI and FRM refused to sign the extensions of the charters, feeling pressured by NASCAR’s final offer. The teams presented texts and emails to demonstrate how NASCAR tried to impose a final agreement on the schedules.

A communication from commissioner Steve Phelps stated: “Give them the ballots, choose a date, and they can sign or lose their ballots, it’s that simple.”

Steve Phelps

Scott Prime, Vice President of Strategic Development, wrote: “We have all the leverage and the teams will almost have to sign the terms of the document we present to them”.

Scott Prime

Michael Jordan and 23XI did not sign, and Jenkins and Front Row joined the lawsuit. Jordan stated that he was open to a settlement, but is willing to take the case to trial. The playoffs begin Sunday at Darlington Raceway and among the drivers in the competition are 23XI’s Reddick and Bubba Wallace and Hamlin, who races for Joe Gibbs Racing. All three have expressed confidence in being able to compete for the Cup title as the litigation continues.