Michael Jordan and Denny Hamlin had their very first triumph over NASCAR and it has deeper implications than you might think. December 18th, 2024 was historic not only for 23XI Racing and Front Row Motorsports but even for NASCAR. 

With a preliminary injunction granted in their favor, the ruling sets the stage for a battle that could reshape the business of NASCAR for years to come. Let’s break down what this decision means for the sport and why it’s causing such a stir. Meanwhile, Kenny Wallace breaks down what an executive’s text message could mean, and how all this might alter the dynamics of NASCAR as we know it. 

Kenny Wallace claims this is a watershed moment for the sport

23XI and Front Row Motorsports had raised a preliminary injunction that they would want to retain their charter status for the year 2025, while still suing NASCAR on grounds for ‘monopolistic practices’. The initial request was denied by Judge Frank Whitney but he was replaced by Judge Kenneth Bell and that turned the tables. The request has now been granted by Bell. Not only can teams maintain their status, but it can also not hold the approval of the team’s purchase of the two Stewart-Haas Racing charters. 

To add to that, this ruling in favor is only for the year 2025. This means that although the two teams have won the preliminary injunction, they will have to wait till next year to get a complete inside picture. Speaking of the same, Kenny Wallace said, “This is a monumental win for 23XI and Front Row Motorsports, but only for 2025. Judge Kenneth Bell said 23XI and Front Row won their preliminary injunction, only for 2025. It sounds like the judge is giving it a year to figure out the whole situation in 2026. This whole deal is going to go on for a year and a half, maybe two years, as expected”.

Kenny Wallace has been quite vocal about what this victory would imply and how it has a long-term impact. He went on to mention a text message he received from a NASCAR executive. “Major NASCAR executive texted me and said one word on the ruling. Stunning” Wallace was shocked to read this and believes this comes out of pure disbelief because of NASCAR’s long-standing power in the sport and their impeccable legal record. Wallace added, “December 18th 2024, NASCAR lost its first huge court case.” 

Wallace claims that 23XI and Front Row Motorsports just wanted NASCAR to come back to the table and be at a standpoint where they could bargain. “They [23XI and FRM] don’t want anything. All they want is NASCAR to come back to the bargaining table and give the teams a bigger portion.” For decades, NASCAR has operated with unparalleled control over its ecosystem, including race schedules, team participation, and revenue distribution. This ruling directly questions that control, opening the door for increased scrutiny and oversight from external entities.

Being labeled a monopoly puts NASCAR under the microscope of antitrust laws. This means that more teams will now find the conjecture to raise their voice against the discrepancies. While there were team owners like Richard Childress who gave in and signed the charter, Michael Jordan, being the fighter he is, did not give in. And Voila…they won!

Michael Jordan was on the verge of losing a major sponsor

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If the preliminary injunction did not go in favor of the teams, then the teams would have to contest as open teams. While they could have continued to drive on the tracks, it would not allow the teams the same kind of permanency as the other chartered teams. Not only that, the teams would have also ended up losing out on their sponsors and serious financial stress.

This was brought to light by the team’s lawyers who pointed out that 23XI Racing had received a formal intimation from Monster Energy, a primary sponsor. The intimation had made it clear that if the team continued to combat as open teams, then they would reconsider the decision to act as sponsors. “On November 23, 2024, 23XI received another email from Monster Energy, stating that it was reconsidering its entire relationship with 23XI…”

The same instance was faced by Front Row Motorsports which was on the verge of losing out their biggest sponsor, Love’s Travel Stops. “To the same effect, Front Row’s largest sponsor, Love’s Travel Stops, emailed the team on November 22, 2024, stating its concern about Front Row’s “ability to meet contractual obligations next season.”

However, now that the two teams have been able to regain their charter status, it fosters a sense of hope amidst all the uncertainties. This decision ensures the teams can maintain their competitive edge and financial stability moving forward. With their charter status reinstated, they can now focus on securing long-term sponsorships and success on the track.