Michael Jordan and Denny Hamlin owned 23XI Racing along with Bob Jenkins’s Front Row Motorsports have locked horns with NASCAR in a lawsuit. It all started when the two teams refused to sign the new charter agreement ahead of the 2024 playoffs and filed an anti-trust lawsuit. The teams accused NASCAR of monopolistic practices; the long list of accusations included not allowing teams to race in other stock car events and having them buy parts only from NASCAR-partnered vendors, among others.

Amid this, the teams have also filed a motion for a preliminary injunction, which, if the court allows, will have 23XI racing and FRM race as chartered teams next year. The teams argued that without the injunction, they would have to face irreparable losses like losing sponsors and other financial losses. However, NASCAR has called this hypocrisy, accusing the teams of wanting to reap the benefits of the charter agreement while also criticizing it. Amid this tussle, NASCAR’s other regulations have come forward that could make the teams’ case even stronger.

Michael Jordan and Co. will have to drop charges to continue racing

Currently, the aim of the teams is to get the preliminary injunction. In a statement, the teams had said, “There is a risk that irreplaceable sponsors and drivers could abandon [the teams] if they have to compete as open teams and do not qualify for all their races.” According to the teams, in one example, the Daytona 500 alone is worth about 15% of the entire season’s purse and without the injunction, they cannot get the money from the purse. However, expectedly, NASCAR has opposed the motion, claiming that they have decided to field  32 charter teams instead of 36 with 8 open entries. And hence, the injunction would change the status quo.

As part of the injunction, Michael Jordan and co’s teams can continue to race as charter teams along with continuing their legal battle against the racing organization. So the thing is, as part of the charter deal, the signees cannot file an anti-trust lawsuit against NASCAR; however, with the injunction, they can. So naturally, NASCAR is using all its might to stop the preliminary injunction. And for that, NASCAR’s rebuttal is that the teams don’t meet the required criteria for an injunction and that they can enter as open cars if they wish to. However, in a recent ruling, another clause has come forward, which is also indicative of NASCAR’s monopolistic practices.

As reported by Fox Sports’ Bob Pockrass – The teams argue that if they race as open teams, they still have to sign the NASCAR open team agreement, which includes the same clause that would release NASCAR of any claims the teams make in the lawsuit. So to even proceed with fielding open, non-chartered cars, the teams would need an injunction to pursue the lawsuit. Also, the teams have claimed that the injunction would not harm NASCAR since they had already planned to have 36 cars up until mid-September, post which the lawsuit was filed. Hence, the status quo will not be changed.

What this means is, be it as a chartered team or an open team, without an injunction, no case against NASCAR can be filed on anti-trust grounds. Recently NASCAR analyst Eric Estepp also spoke on the same. He said, “Basically, if I’m interpreting this correctly, the teams are alleging that whether you’re chartered or not, you cannot race in NASCAR without agreeing to their terms. And one of their terms is you can’t sue us on antitrust grounds. so yeah if they’re right about that then racing as an open team next year would still jeopardize their entire case I’m not a legal expert I want to make that clear but that sure sounds like a strong case in favor of granting the preliminary injunction.”

The hearing to decide if the injunction will be granted is on 4th November. However, as of now, the score is one-zero in favor of NASCAR.

Court denies the teams’ request to gain access to NASCAR’s documents

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The teams request documents concerning both the 2016 and 2025 charter agreements, race track sanctioning agreements, and the acquisition of both International Speedway Corporation and the ARCA Racing Series from six key NASCAR executives. The teams claimed that these documents would aid their case in getting the preliminary injunction. It would also have shed light on NASCAR’s monopolistic practices, revealing the clauses in the new and old agreements and details of them owning most of the tracks in the NASCAR lineup and the ARCA series.

However, the court has denied its request. According to the court, the teams had previously stated that they could win the injunction motion without the documents. Producing them on such short notice will be overburdening to NASCAR. Earlier, the teams had argued that the eight documents from six NASCAR executives were narrow in scope and easy to produce. Although the court did not agree as the ruling read, “While the proposed discovery requests may help Plaintiffs show a likelihood of success on the merits, they are not sufficiently narrowly tailored, and Plaintiffs argue the record is sufficient to support their motion for preliminary injunction as it stands.”

Without this NASCAR is perhaps only backing on the clauses they would have them drop the case if not given an injunction. On Monday, the court will decide if the team will race as charter teams or not in the 2025 Cup series season. What are your thoughts on the arguments put forth by both the parties? Let us know in the comments below.