Federal Judge Denies Injunction to Michael Jordan’s Teams in Antitrust Lawsuit with NASCAR
A federal judge issued a ruling denying a request for a preliminary injunction filed by two teams, one of which is owned by NBA legend Michael Jordan, in their antitrust lawsuit against NASCAR. Wednesday’s decision prevents the teams from being recognized as licensed teams for the remainder of the season. Judge Kenneth Bell, of the U.S. 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, last week, to not sell the six licenses that the teams previously held until the legal battle is over. Judge Bell has repeatedly emphasized his reluctance to rule on the likelihood of one party prevailing over the other. In his ruling, he reiterated this position.In addition, the judge warned about what the NASCAR landscape could look like if the case is not resolved before trial.The court believes it is best not to provide its forecast on the likelihood of success of the plaintiffs on the merits of the case, and thereby potentially bias the jury, unless necessary, which is not the case.
Judge Kenneth Bell
NASCAR issued a statement in which it stated that the ruling “provides much-needed clarity for the remainder of the 2025 NASCAR season.”The uncertainty about how the 2026 season will be unfortunately exists not only for the parties, but also for the other teams, drivers, technical teams, sponsors, broadcasters and, unfortunately, the fans.
Judge Kenneth Bell
The trial is scheduled for December 1st. The lawyer for the teams suing NASCAR, Jeffrey Kessler, was not necessarily disappointed by the ruling.For nearly 80 years, NASCAR and the France family have championed a bold vision, taking many personal and financial risks to build a sport that fuels 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
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 licensing system. A license is the equivalent of a franchise and guarantees licensed cars a place on the 40-car grid each week, as well as a significantly larger share of the payments. NASCAR presented its final offer on license 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 have also appealed for the license status to be reinstated, but NASCAR argued in court last week that it has an interested buyer for one of the six licenses previously held by 23XI and FRM, and plans to begin redistributing the licenses immediately. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the licenses, 23XI and FRM are no longer in danger of suffering 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 license rights.” Tyler Reddick, from 23XI, has a clause in his contract stating that the team would be in breach if his Toyota is not licensed. 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’ license payments and the uncertainty of ongoing relationships with drivers and sponsors may be offset by monetary damages at trial or are simply inherent in the risks associated with the lawsuit”.We appreciate that Judge Bell has made it clear that the status quo is maintained, protecting my clients’ rights to recover their licenses if they prevail in the 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 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.
Jeffrey Kessler
