It looks like the battle has now reached a deadlock for NASCAR. Almost three months old, the litigation pitting billionaire NBA icon Michael Jordan against Jim France’s multi-billion dollar enterprise of NASCAR has already produced a lot of beating and banging. However, it looks like NBA superstar/NASCAR team owner is having the last laugh for now. But before we get to that…
For context: Last week, Judge Kenneth D. Bell had tilted the pendulum in favor of 23XI Racing and Front Row Motorsports. The two teams sought a preliminary injunction request—a move they thought was paramount. The reason? The stock car organization reportedly has a clause in their charter agreements that forbids teams from bringing antitrust action against NASCAR. As per attorney Chris Yates, representing the tourney: “They have been calling NASCAR a series of names that undermine NASCAR’s brand and goodwill. NASCAR only wants to enter into charter agreements with teams who want to work collectively to grow the sport.”
After an open-team competition and a $45 million loss on the table, the court granted a motion by 23XI and FRM for a preliminary injunction in their antitrust case against NASCAR. When Michael Jordan and Co. first filed the NASCAR lawsuit, they were extremely driven toward one objective. Both teams wanted to prove that NASCAR violated U.S. antitrust law by imposing restrictive conditions on teams.
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Noted antitrust attorney, Jeffrey Kessler, who’s known to have handled the US Soccer’s equal pay issue for USWNT’s Alex Morgan, said, “We literally cannot practice our profession at all without signing this release.” However, the first motion was dismissed by Judge Frank Whitney, throwing up the possibility of monetary loss and Tyler Reddick’s contractual implications. “Although Plaintiffs allege they are on the brink of irreparable harm, the 2025 racing season is months away — the stock cars remain in the garage… At this stage, the teams are no closer to irreparable harm than they are to the command, ‘Drivers, start your engines,’ at the first race of the 2025 season,” Whitney wrote.
Soon after, on December 11, the judge was replaced by Bell, without any explanations. And just a week later, the tides turned in the team owners’ favor. Judge Bell’s decision essentially meant that the two teams could now compete as chartered teams for the entirety of the 2025 season, and the stock car organization won’t be able to bar them from exercising their rights. And now, here’s the most recent update that will definitely have Jordan smiling…
On December 22, FOX Sports’ Bob Pockrass informed of a significant development, “Judge ruling: No delay in enforcing requirement that NASCAR approve a charter transfer to Front Row. But as far as SHR transfer to 23XI, team has to ask for that again because preliminary injunction request was for FRM (I believe b/c 23XI had not yet formally asked for transfer).” The issue at hand this time is the shuttered team Stewart-Haas Racing’s charters that 23XI and Front Row are set to acquire.
While the Judge granted FRM its injunction request to force NASCAR to grant the acquisitions, 23XI’s, as per what Pockrass reported “had not yet formally asked for transfer”. Then on December 24, another update hit. Pockrass wrote, “Knowing the judge most likely would issue injunction when 23XI files request and NASCAR would appeal, NASCAR has agreed to an injunction for SHR charter transfer to 23XI and 23XI agreed it won’t use the fact NASCAR agreed to it as an argument when NASCAR appeals.”
With the courtroom protecting the plaintiffs’ sports careers, NASCAR has no choice but to tag along.
Knowing the judge most likely would issue injunction when 23XI files request and NASCAR would appeal, NASCAR has agreed to an injunction for SHR charter transfer to 23XI and 23XI agreed it won’t use the fact NASCAR agreed to it as an argument when NASCAR appeals. https://t.co/4lgqRHybNz
— Bob Pockrass (@bobpockrass) December 24, 2024
It seems Jim France and Co. are also trying to accelerate the process for 23XI Racing, which was also confirmed by the FOX Sports journalist. “This just speeds things along to go to U.S. Court of Appeals now rather than waiting for 23XI to ask for an injunction that NASCAR approve charter transfer from SHR, for NASCAR to have to reply and the judge to rule. NASCAR knows how judge would rule based on ruling yesterday,” a tweet from December 25 read.
Still, the procedure needs to be duly followed, as the judge’s approval will follow. Yet the NASCAR lawsuit is hardly likely to harm Jordan and Co. now, as Pockrass stated: “The district court judge has to formally OK this injunction request but I would be surprised if he rejected it.”
However, despite these sunny prospects, Michael Jordan and Co. still have a tough battle ahead.
Turning to the harsher side?
The courtroom took Michael Jordan‘s side in securing the plaintiffs’ future. Now, however, the spotlight returns to the initial case—proving NASCAR’s “monopolistic bullying”. But before taking a step forward in the NASCAR lawsuit, teams need to clear one hurdle.
Jim France and Co. had filed a motion in early December seeking to dismiss the lawsuit altogether. They called it a “misguided attempt to dress up private business frustrations in antitrust garb.” Now, the courtroom has set the ball rolling in hearing this motion, which might invalidate Michael Jordan and Co.’s fighting ethos altogether.
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Judge Kenneth D. Bell set a hearing on January 8 to hear NASCAR’s motion, in the latest development of the case. He also set up other hearing deadlines.
- Bell set a Sept. 19, 2025, deadline for discovery.
- Then, a trial date of Dec. 1—after the completion of the next season—is also fixed. This should ring alarm bells for Jordan and Co., as now the France family may be more determined to put an end to the lawsuit.
They had argued in this motion that while grounded in far-reaching principles of justice and equity, the complaint “reflects nothing more than dissatisfaction with business negotiations that didn’t go their way.”
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If this argument succeeds in moving the federal judge, then 23XI and FRM have a problem on their hands. Even so, let us wait and find out how it proceeds.
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Debate
Is Michael Jordan's fight against NASCAR a game-changer for racing teams' rights and fairness?
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Top Comment by Dav_Daddy
This gets settled in a few months. I’m 100% convinced NASCAR does not want this going to discovery. Does anyone...more
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