Trying to undo things might end in bitter conflict. Ever since it was filed, the NASCAR lawsuit had tilted in the sanctioning body’s favor. The federal court presented an obstacle to Michael Jordan and Co. in surviving through the 2025 season. However, a crucial change of judges and new evidence put the ball in Jordan’s court. The teams can now race as chartered teams in the Cup Series according to a December 18th ruling.
This has left NASCAR fumbling for a solution. It had already prepared for a season without 23XI Racing and Front Row Motorsports – ranging from excluding their names from the entry list to introducing prize money for other teams. So it is desperately trying to reverse the scenario – but Jordan and Co. are prepared.
NASCAR drops a desperate plea
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On December 18th, Judge Kenneth D. Bell found solid evidence for ‘irreparable harm’ if the teams raced as open teams. Firstly, there was an opt-out clause for drivers in 2025 should 23XI or FRM fail to race with charters. Secondly, a clause in the charter agreement that prevented filing a lawsuit in exchange for membership was found to be a violation of federal antitrust laws. Accordingly, Michael Jordan and Co. received a preliminary injunction in the form of charter status. However, their legal opponent is not backing out so easily, as they are seeking to undo this move.
NASCAR is asking the court to implement a ‘Rule 65 Bond.’ This would ensure that the applicant can pay any damages or costs incurred by a wrongfully restrained party. In other words, the sanctioning body is invalidating Judge Bell’s ruling. The reasons given for this demand involve having to pay the teams’ six cars money that would have otherwise been used elsewhere. NASCAR claimed it “already published increased prize money for the 2025 NASCAR Cup racing season. These larger race purses coupled with increased NASCAR spending on promotional programming and other growth initiatives…Instead of working with existing teams to expand or enticing new investors to join the sport, NASCAR will instead have to pay plaintiffs.”
Michael Jordan‘s opponent further stressed that the teams missed the initial charter signing deal. NASCAR claimed that 23XI Racing and FRM do not have the same interests as the 13 teams who signed it. “NASCAR is now forced to be in contractual privity with teams that do not share its interest in growing the Cup Series, and which take away from the opportunities to provide more teams (including Open teams) with incentives to race in NASCAR Cup Series races. Instead, NASCAR now must pay millions of dollars to Plaintiffs, who, along with their counsel, have repeatedly made public statements intended to damage the image and goodwill of NASCAR.”
However, Michael Jordan and Co. are well prepared for this onslaught.
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Michael Jordan rolls up his sleeves
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NASCAR has been involved in lawsuits before. It also tried to entirely dismantle the current lawsuit on December 2nd. But Michael Jordan and Co. got through that round – and they are confident about tackling NASCAR’s fresh claims. The team responded to its demand for a bond covering the 2025 payout by stating the injunction wasn’t a gift. “The payments are made in exchange for the season-long obligations the teams undertake to NASCAR, including the commitment to compete in every Cup Series race and two exhibition races, the granting of the right to use the teams’ intellectual property rights in commercial deals for NASCAR’s benefit…and the teams’ agreement to the restrictive covenant not to compete which prohibits them from participating in any competing events.”
Michael Jordan’s side further listed paragraphs worth of requirements they would need to fulfill under the terms of charter recognition. These include one forced by court, and also those that are the direct result of NASCAR’s monopoly in the sport. The teams concluded that they could commit to a nominal bond of no more than $500. “Simply put, there is no harm to NASCAR in having to make Pool Money payments to Plaintiffs in exchange for their commitments to fulfill their obligations under the 2025 Charter Agreement. There is thus no potential cognizable injury for which Defendants can seek a bond.”
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Evidently, Michael Jordan has come prepared for NASCAR’s defense strategy. We can only wait for the next hearing to see how the court responds to this.
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Is NASCAR's resistance to Michael Jordan's 23XI Racing a sign of fear or strategic defense?
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