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Is 23XI Racing's legal battle a bold move or a desperate gamble against NASCAR's dominance?

Michael Jordan and Denny Hamlin are walking on a tightrope after filing an antitrust lawsuit against NASCAR. It is indeed hard to put a timeline on how soon this dispute will be resolved in court. This is where the 23XI Racing co-owners find themselves in a tough spot, as they want to continue racing while the lawsuit continues in 2025.

To safeguard the future of their two drivers, Bubba Wallace and Tyler Reddick, they have now filed for an injunction. Basically, a permit to enter the 2025 season as a chartered team while they continue with their anti-trust lawsuit proceedings. It seems like Michael Jordan & Co. are trying to secure their bases before they are knee-deep in this legal tussle. Although it’s tough to predict whether the injunction will favor them or not, Kenny Wallace fears that the co-owners of the team are in a rough spot.

Michael Jordan and 23XI Racing’s 2025 plans under serious threat

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23XI Racing does not have a charter agreement with NASCAR to run beyond the 2024 season. So with the turn of the new year, the two charters they have with them won’t be eligible to compete in 2025. An injunction is something that would serve their best interest, as it will activate the team’s charter team status and allow them to focus on an anti-trust lawsuit.

Even if the injunction plea is rejected, they are committed to competing as an open team. This was confirmed by Denny Hamlin on the Actions Detrimental podcast. “We will not let this affect our employees whatsoever, and any financial distress will fall upon the owners.” And this stance by the 23XI Racing could bite them in the back, according to Kenny Wallace.

“Now this is my opinion; this is not good for Michael Jordan and Denny Hamlin. NASCAR says we’re not gonna let them be part of the charters. NASCAR says we’re not giving them injunction because 23XI’s come out and said we will race next year as a non-charter member…NASCAR’s first response is no. I think this is gonna be a battle royale. NASCAR’s strong, they’re big.” Kenny Wallace shared this take on X.

This argument was also present in the documents released by Bob Pockrass, where NASCAR made its stance clear on the idea of an injunction. “Plaintiffs cannot establish irreparable harm since Plaintiffs and their counsel have confirmed that Plaintiffs’ teams will compete as open teams in 2025, which means that money damages can compensate Plaintiffs even if they were to ultimately prevail.”

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Is 23XI Racing's legal battle a bold move or a desperate gamble against NASCAR's dominance?

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Meanwhile, NASCAR has asked the court to extend the date for their reply after their offices in Daytona Beach were hampered by the storm. The hearing was scheduled for October 16 in a federal court in Charlotte but is now pushed further. But, among those documents, there was another interesting finding. And it looks like NASCAR was at odds with them during the negotiations for a charter deal.

23XI Racing didn’t receive similar treatment as the other teams

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Did the likes of Hendrick Motorsports, Joe Gibbs Racing, and Team Penske receive special treatment by NASCAR? The Racing Team Alliance (RTA) was a united front against NASCAR in demand for a better business model. Rather than dealing with them as a unit, NASCAR held private meetings and made concessions to influence them into signing the new charter deal. Jim France did meet with the 23XI Racing team owners on May 10th but they weren’t able to come to terms.

“Since then (May 10th) we have not been allowed to negotiate directly with Jim France or or his designee. At the same time, it is our understanding that Mr. France or his designee have met with many other teams multiple times regarding charter negotiations. And have made some concessions that were requested in those meetings.” This was mentioned in the letter 23XI Racing wrote to NASCAR President Steve Phelps.

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As things stand, it feels like neither NASCAR nor 23XI Racing is willing to give each other an inch. On one hand, you have NASCAR, a long-serving private family enterprise, and on the other an iconic sports personality, Michael Jordan. Who will prevail? Only time will tell.

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