There seems to be little respite for 23XI and Front Row Motorsports in their fight against NASCAR. Their motion for a preliminary injunction to race as charter teams next year was turned down on November 8. While they have filed a renewed motion citing new circumstances that show they will face irreparable harm, NASCAR and its CEO, Jim France have filed motions to have the anti-trust lawsuit dismissed entirely.

Michael Jordan, who co-owns 23XI has been vocal about his side’s chances of success against NASCAR as they look to fight against what they claim are monopolistic policies of the organization. 23XI and FRM were the only two teams that didn’t agree to the new charter deal, but now face a fight to sustain their futures in stock car racing.

On Monday, December 2, NASCAR filed a motion outlining several reasons as to why they believe the lawsuit has no merit and are pleading the dismissal of the anti-trust lawsuit.

“Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb. Plaintiffs bring claims barred by the statute of limitations and laches; they fail to plead any reduction in competition, meaning they do not have the required antitrust injury to establish antitrust standing; and they aim to renegotiate contractual terms rather than address genuine anticompetitive behavior. Plaintiffs’ claims should be dismissed,” NASCAR’s filing read. In this filing, several reasons are cited as to why they believe the anti-trust motion should be dismissed.

The first is that “most of the Plaintiffs’ claims are time-barred by the statute of limitations and laches because they concern conduct that occurred more than four years ago.” This was in response to NASCAR acquiring the ARCA Menards Series in 2018 International Speedway Corporation (ISC) in 2019, requirements for the Next Gen car in 2020, and the arrangements with racetracks as well as the original charter agreement.

Then NASCAR cites that “Plaintiffs’ lack antitrust standing to sustain their challenges to the 2025 Charters’ release of claims and noncompete provisions, which are their only claims that arguably fall within the statute of limitations because Plaintiffs’ did not sign the Charters and their failure to secure preferred contractual terms is not antitrust injury.”

Since they did not sign the new agreement, NASCAR has argued that the terms 23XI Racing and Front Row Motorsports are challenging (the release and non-compete provisions) do not impact them. According to NASCAR, without a signed agreement, both teams are free to race in any league or even start their own.

Another reason NASCAR has put forward is, “Plaintiffs have not alleged any facts demonstrating exclusionary conduct by NASCAR for two reasons. First, NASCAR did not refuse to deal with Plaintiffs; rather, NASCAR proposed contractual terms which Plaintiffs rejected and which are no longer available. Second, Plaintiffs have not pleaded any facts plausibly demonstrating that either of the two challenged Charter provisions reduces competition.”

Michael Jordan’s 23XI and FRM have been adamant about fighting for a change. In their anti-trust lawsuit, they claimed that NASCAR monopolized the market for premier stock-car racing, allowing it to keep a greater share of profits. Further complaints included acquiring premier racetracks and implementing policies that restrict teams from racing for NASCAR rivals. These accusations were part of a two-year-long negotiation between the Race Team Alliance and NASCAR, that involved demanding higher revenue and permanent charters.

However, now NASCAR seeks to diffuse the strength of that argument. While Michael Jordan and Co. fight to keep their breathing rights alive in the 2025 season, Jim France seeks to uproot the NASCAR anti-trust lawsuit.

Right now, 23XI Racing and Front Row Motorsports have until December 16 to respond to NASCAR’s motion for the case to be dismissed. Last month on November 16, there was a significant development as NASCAR agreed to remove the anticompetitive release requirement for “open teams.” This will allow both teams to race as at least as non-chartered teams next year. Still, it seems NASCAR is pushing for the lawsuit to be entirely dissolved and it doesn’t bode well for Michael Jordan and Co. NASCAR has taken big steps to quash any challenge posed by the two opposing parties.

Bleak prospects for the teams

Back in October, NASCAR already announced that it plans to run in 2025 with 32 chartered teams (instead of 36 this year) and eight open cars (instead of four) in its 40-car field. That charted out 23XI and FRM’s impending doom, as both teams were compelled to sign an open agreement on November 16th. Although Jordan and Jenkins will be able to field cars next year, it would mean a drastic fall in revenue and is not seen as a long-term proposition.

23XI co-owner Denny Hamlin opened up about the financial losses they could possibly incur and ensured that the owners and not their employees would bear it. “As 23XI, we’re prepared for any outcome. I think Michael [Jordan] has stated and I’ve stated to the team we will not let this affect our employees whatsoever in any kind of way, and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen,” said Hamlin. The major financial strain is not having a guaranteed seat for each race next season, therefore possibly missing out on a chunk of the season’s purse.

The Daytona 500 alone is worth about 15% of the entire season’s purse. As open teams, 23XI Racing, and FRM have no guarantee of running that race. So FRM owner Bob Jenkins dejectedly admitted to the risk of the NASCAR lawsuit. “Because of our love for the sport and our determination to maintain the race team we have built, we are determined to race next year even if we have to do so on an ‘open’ basis, but at some point, the losses may become so severe that we simply cannot continue — causing irreparable harm to our business, our employees, and the communities and fans we are associated with,” he said.

With NASCAR’s recent plea, the future looks very dim. However, with a new petition for a preliminary injunction file, Michael Jordan, Denny Hamlin and Bob Jenkins will be hoping for some reprieve in the ongoing tussle as they battle for their teams’ future.