Here’s a quick recap of the legal battle between Michael Jordan’s 23XI Racing, Front Row Motorsports, and NASCAR. In 2024, NASCAR introduced a new charter agreement; 23XI Racing and Front Row Motorsports declined to sign the agreement. The agreement was described as a ‘take-it-or-leave-it’ offer, which left little room for negotiations. This refusal to sign the deal was followed up with an anti-trust lawsuit filed by both teams against NASCAR, alleging ‘monopolistic practices’

Recently, both teams made a breakthrough in this case at federal court in Charlotte, North Carolina, offering them a sigh of relief.

23XI Racing secures charters

Michael Jordan’s 23XI Racing and Front Row Motorsports argued that the current system stifles competition and leaves no room for fair negotiations. “We did not have an opportunity to fairly bargain for a new charter contract,” stated 23XI in September this year. The charter system works as a franchise agreement, offering guaranteed race entries and revenue sharing. Considering this provides financial sustainability, the stakes were high for the teams. Losing the charter meant racing as an ‘open team.’

In a recent breakthrough, 23XI Racing and Front Row secured another big win in the lawsuit. The court granted a preliminary injunction allowing both teams to retain their chartered status while the lawsuits proceed. To add to that, the court also approved both teams to purchase the charters from Stewart-Haas Racing (SHR) which ceased operation at the end of the 2024 season. SHR had two charters, and 23XI and Front Row secured one charter each. This solidified their position in the 2025 NASCAR Cup Series.

The recent breakthrough was also explained by Charlie Marlow on YouTube. Charlie expressed the importance of the issue by saying, “It’s clearly the most profound development in this case.” He also explained, “First and foremost, the Stewart Haas racing charter that were in limbo, so those teams that agreed to purchase those charters, like the car for Riley Herbst at 23XI Racing and the car for Noah Gragson at Front Row Motorsports, those teams can run as chartered teams.” From being doomed to race as open teams to having secured an additional charter, what changed during the court proceedings? The judge!

Initially, U.S. District Judge Frank D. Whitney denied their request for a preliminary injunction, stating, “The plaintiffs have not sufficiently demonstrated immediate and irreparable harm if the charter remains in question.” However, a change in judge to Kenneth Bell flipped their fortunes. Bell granted the preliminary injunction and also added, “The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market.” This is a huge win in the lawsuit for Michael Jordan’s team and FRM as they get past the injunction hurdle, secure their charters, and get clarity on the judge’s stance on the lawsuit.

Charter agreements are pivotal in NASCAR as they guarantee race entries, a share in prize money, and increased sponsorship opportunities. Without a charter, the team competes as open entries; this amplifies the uncertainties and removes the guaranteed spots, also resulting in significantly lower earnings. Open teams, unlike chartered ones, have to qualify and are not assured a spot. This scenario makes it harder to attract sponsors. The charter system is modeled after franchise structures in major sports leagues. The lawsuit remains in focus now as the preliminary injunction saga is finally over, which would be a major relief for the two teams heading into 2025.

23XI Racing and Front Row Motorsports set for 2025

Trending

Racing Community Sends Bold Warning to John Hunter Nemechek Against Sabotaging Redemption Year

Dale Jr.’s Wife Amy Ready to Give Her ‘Nothing’ as Exhausting Christmas Forces 3-Word Declaration

“Lazy” Tony Stewart Lets Slip an 8-Word Reason for Avoiding Retirement From Racing

Calls Mount for NASCAR to Disclose 14-Year Secret as Fan Offers Bounty for Evidence

Until now, Bubba Wallace and Tyler Reddick were the two full-time drivers on the field for Michael Jordan’s team. Now the injunction approval confirms Riley Herbst’s chartered entry for 2025. Herbst is coming off an impressive Xfinity series tenure with 3 wins, 17 top-5, and 32 top-10 finishes over the last two seasons. He finished 7th in the driver’s standings in 2024.

Similarly, Front Row Motorsports will continue to field three entries after securing the charter from Stewart-Haas Racing. The team will compete with Michael McDowell and Todd Gilliland as their confirmed chartered drivers. As for their third seat, Zane Smith is the resounding favorite to pilot the car. However, there has been no official confirmation yet.

As the 2025 season approaches, 23XI and FRM will look forward to their third car on the track as well as finally pursuing the anti-trust lawsuit. With the charter drama sorted out, the real lawsuit will begin soon and these court proceedings could go on for a long time. So sit back and relax as NASCAR takes on its fiercest legal battle yet.