NASCAR: Judge rejects Michael Jordan’s request in charters case

Judge Denies Request for Michael Jordan’s Teams in Antitrust Lawsuit Against NASCAR

A federal judge on Wednesday 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 petition sought recognition of the teams as members with participation rights 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 issue the injunction in favor of 23XI Racing and Front Row Motorsports. This is because NASCAR committed last week not to sell the six participation rights that the teams previously held until the legal process is complete. Judge Bell has reiterated on several occasions his position of not wanting to rule on the likelihood of one party prevailing over the other, and he reaffirmed it this Wednesday.

“As the Court noted at the hearing on this motion, the Court believes it is best not to provide its prediction of the plaintiffs’ likelihood of success on the merits, and thereby potentially bias the jury, unless it is necessary to do so, which is not the case here,” Bell wrote.

Judge Kenneth Bell

In addition, the judge warned about the scenario that NASCAR could present if the case is not resolved before trial. NASCAR, in a statement, said the decision “brings much-needed clarity to the rest of the 2025 NASCAR season.” The trial is scheduled for December 1st. “With the trial in this matter less than three months away and the season in its final laps, NASCAR has agreed to extend those representations, with material effect,” Bell wrote in denying the motion for injunctive relief. “This will effectively maintain the status quo pending a final decision on the merits and any permanent injunctive relief after trial, i.e., the plaintiffs will be able to compete and the disputed participation rights will not be sold or otherwise transferred.” Jeffrey Kessler, lawyer for the teams suing NASCAR, was not necessarily disappointed by the decision.

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

23XI Racing, the team owned by Michael 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 cars with charters a place on the 40-car grid each week, as well as a significantly larger share of the payments. NASCAR, last September, after more than two years of contentious negotiations, presented the teams with its final offer on participation rights extensions; 13 organizations signed the agreements, but 23XI and Front Row refused. The teams have also appealed for the participation status to be restored, but NASCAR argued in court last week that it has a buyer interested in one of the six participation rights previously held by 23XI and FRM, and plans to begin redistributing the participation rights immediately. NASCAR backtracked after Thursday’s hearing. NASCAR maintains that by refraining from redistributing the charter rights, 23XI and FRM are no longer in danger of suffering irreparable harm. The teams argued on Tuesday 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 charter rights.” Tyler Reddick, from 23XI, has a clause in his contract that states the team would be in breach if his Toyota doesn’t have participation rights. Jeffrey Kessler, the lawyer for both teams, indicated in court that Reddick has notified 23XI that it is in breach. Bell wrote in his decision on Wednesday 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 is simply inherent in the risks associated with the lawsuit.”