23XI Racing co-owners Denny Hamlin, and NBA Hall of Famer, Michael Jordan - Source: Getty Images for NASCAR
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NASCAR News: The Fight For the Finish Line – Lawsuit Latest

Posted by AR1 staff

In the heart of Charlotte, North Carolina, the hum of race engines was drowned out by the clatter of legal briefs and the tension of a courtroom lawsuit showdown. It was July 2025, and 23XI Racing, co-owned by Michael Jordan and Denny Hamlin (pictured), along with Front Row Motorsports (FRM), owned by Bob Jenkins, were locked in a high-stakes battle against NASCAR.

–by Mark Cipolloni–

The two teams had filed a federal antitrust lawsuit in October 2024, accusing NASCAR and its CEO, Jim France, of monopolistic practices that stifled competition and unfairly controlled the sport’s economic landscape. At stake were their six NASCAR Cup Series charters—franchise-like agreements guaranteeing race entries and substantial prize money—valued at up to $270 million combined.

Related Article:  NASCAR News: It’s Tit-for-Tat in the NASCAR Antitrust Lawsuit

The trouble began in September 2024, when NASCAR presented a “take-it-or-leave-it” charter agreement extension to its 15 Cup Series teams, set to expire at year’s end. Thirteen teams signed, some under duress, but 23XI and FRM refused, citing terms that restricted their ability to sue NASCAR and failed to address key demands like permanent charters and a fairer revenue split.

The teams argued NASCAR’s practices—owning most premier racetracks, acquiring rival series ARCA, and enforcing exclusivity deals—created a monopoly that left teams no choice but to accept unfavorable terms.

Inside 23XI’s sleek headquarters, Denny Hamlin paced the floor, his three Daytona 500 wins feeling distant as he faced a different kind of race. Michael Jordan, his co-owner, sat at a conference table, his competitive fire undimmed from his NBA days.

“This isn’t about us,” Jordan said, his voice steady. “It’s about making the sport fair for every team, driver, and fan.” Across town, Bob Jenkins echoed the sentiment at FRM’s shop, knowing the loss of their charters could cripple his team financially. Both teams had already secured a preliminary injunction in December 2024, allowing them to race as chartered teams in 2025 while the lawsuit proceeded.

But the tide turned in June 2025. The U.S. Court of Appeals’ Fourth Circuit, led by Judge Paul Niemeyer, vacated the injunction, ruling that the teams’ antitrust argument—centered on NASCAR’s requirement to release legal claims as a condition of charter agreements—was unsupported by precedent. The decision, finalized on July 9, 2025, after the teams’ request for a full-court rehearing was denied, meant their charters would be revoked starting at Dover Motor Speedway on July 20th.

Without charters, 23XI’s drivers—Tyler Reddick, Bubba Wallace, and Riley Herbst—and FRM’s trio would race as “open” teams, forced to qualify on speed and earning less than a third of the purse money. Worse, a clause in Reddick’s contract allowed him to leave if 23XI couldn’t provide a chartered car, threatening to make the 2024 regular-season champion a free agent.

Desperate to avoid “irreparable harm,” the teams filed for a new preliminary injunction and temporary restraining order on July 14, 2025, alleging NASCAR planned to sell their charters to other teams, potentially wiping out their businesses. Their attorney, Jeffrey Kessler, a heavyweight in antitrust law, argued that losing charters could force sponsors and drivers to jump ship, jeopardizing their playoff hopes and long-term viability. NASCAR countered, calling the lawsuit “baseless” and accusing 23XI and FRM of colluding to force better terms, even alleging that 23XI’s Curtis Polk tried to organize a boycott of a Daytona qualifying race.

On July 17, U.S. District Judge Kenneth Bell denied the temporary restraining order, noting that NASCAR agreed not to sell the charters until the new injunction was decided and that the teams’ cars would likely qualify for the next two races at Dover and Indianapolis due to smaller fields. But the teams weren’t out of the woods. A hearing for the new injunction was set for August 28, 2025, with the trial looming on December 1.

As the teams prepared for Dover, Hamlin rallied his drivers. “We’re racing for more than points now,” he told Reddick, whose fifth-place standing in the 2025 points race hung in the balance.

Jenkins, meanwhile, worked late with his crew, knowing FRM’s slimmer budget made the financial hit of “open” status even more brutal. Both teams vowed to fight on, fueled by a belief that their lawsuit could reshape NASCAR’s future. The courtroom was their new racetrack, and the finish line—a fairer, more competitive sport—was still in sight, even as their charters hung by a thread.

NASCAR’s latest legal filing, made late in the evening on August 17th against the team’s continued fight for an injunction that would allow them to keep racing with their charters, argues forcefully against any injunction.

NASCAR states that the court cannot compel it to do business with parties it does not wish to. This is a key argument in the NASCAR lawsuit, as the league stresses its right to manage team agreements independently. Another central point in NASCAR’s filing is that the teams are unlikely to succeed in legal claims alleging that NASCAR is a monopoly.

Motorsports journalist Jeff Gluck posted a summary of NASCAR’s latest legal stance on X, the sanctioning body opposes the injunction on multiple fronts.