Michael Jordan’s 23XI Racing and Front Row Motorsports might have to run as open teams for the 2025 season. This was the possibility many of us predicted in case their appeal for preliminary junction didn’t come out in their favor. As it turns out, MJ and 23XI Racing’s worst fears have come true. In the recent court hearing, the federal judge denied both teams’ request to run as charted teams next year.

NASCAR had already secured a first small win when the court ruled against the team’s appeal for expedited discovery. This was indeed a blow for the two teams who wanted to see NASCAR’s book and how to operate financially. It would have made their case stronger for the preliminary injunction hearing, and it looks like they are losing their grip over this legal battle.

Michael Jordan and his allies will need to look for an alternative

Michael Jordan and Co. were hoping to secure the safety of their drivers and sponsors before they could battle against NASCAR on antitrust grounds. Another important piece of this puzzle is that the two teams’ charters are only valid until the end of 2024. Without the charters entering the new year, they could be vulnerable. It has to be noted that both 23XI Racing and FRM have decided not to sign the new charter agreement.

But their grand plan seems to be going south as the current ruling has gone against them in the court. Bob Pockrass from FOX Sports shared an update on the ruling via X. He shared the part of the statement delivered by the court that went against 23XI Racing and FRM. “At this time, Plaintiffs have not met their burden as required for a preliminary injunction. Should circumstances change, Plaintiffs may file a renewed motion for preliminary injunction.”

So is that it? Will 23XI Racing and FRM be forced to roll out as open teams for 2025? Fortunately, there’s still another opportunity for the team to make valid arguments with an appeal. But hope remains bleak in the two team camps for the time being. “Pretty much the judge said the teams’ argument that they might lose sponsors and might lose drivers and might not survive as an open team is not enough for a preliminary injunction. That they had to show that they would.” Pockrass shared further.

As it stands, 23XI Racing has a big problem if they run as an open team for the next season. As per Jeffrey Kessler, Tyler Reddick’s contract includes a clause that lets him leave the team if there is no charter. Given Reddick’s form this season and his place in the Championship 4, losing him will be a massive loss for the team.

While NASCAR has refrained from speaking in the media about the charter deal and the lawsuit, they made some pretty bold claims about the new TV revenue splits.

Teams are the biggest beneficiaries from the new TV deal, says NASCAR

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One of the big demands teams made before agreeing to sign the charter deal was increased revenue cuts from the TV deal. With the financial constraints forcing the teams to rely on sponsorship money, they wanted NASCAR to help them stay afloat financially to run and operate their race teams. It has to be noted that the sanctioning body signed a mega $7.7 billion TV and streaming deal for the next seven years. This was a surprise given that the sport was believed to be in decline.

During the press conference ahead of the championship race in Phoenix, President Steve Phelps spoke on a range of topics. And, while he tried his best to tackle any questions surrounding the charter agreement, he did reveal a few details that seem to have worked out in the team’s favor. “I won’t go into what the money split looks like, but what I will say is that the amount of money it now puts the race teams, starting in 25, as the single largest beneficiary of our media deal. And we did that because the race teams were upside down financially.”

This is the first time NASCAR has acknowledged the financial burden the teams were facing in public. It is indeed tough to see why 23XI Racing and FRM rebelled. Going by Phelps’ words, such a deal would change the current economic dynamics of the race team. Perhaps even bring about a positive change, but it remains to be seen what becomes of the two teams who are currently on the backfoot against the mighty NASCAR.