23XI Racing, co-owned by basketball legend Michael Jordan and NASCAR driver Denny Hamlin, along with Front Row Motorsports, kicked off a massive confrontation with NASCAR, claiming anti-competitive practices. They argue that NASCAR has monopolized control over the sport, which not only restricts competition but also harms the teams involved. It’s a bold move that aims to challenge the status quo in a sport where competition should thrive.

The lawsuit levels some serious allegations against NASCAR. For starters, they claim NASCAR bought up a majority of the premier racetracks, making them exclusive to their events. It also contends that NASCAR restricts teams from racing in other stock car events and retains ownership over the Next-Gen parts and cars, further tightening their grip on the sport. And recently, there has been a big update on the situation.

23XI Racing and Front Row Motorsports fighting to get the upper hand

In a recent update from Bob Pockrass, 23XI Racing and Front Row Motorsports (FRM) have taken a significant step in their ongoing legal battle with NASCAR. They filed a reply to NASCAR’s response regarding their motion for an injunction. According to Pockrass, the 23XI Racing/FRM team pointed out that the open team agreement specifically requires them to waive the right to pursue lawsuits like the one they’re currently involved in. Without it, they risk being sidelined from the race, which is a huge deal, especially when every point counts in the competitive world of NASCAR.

The argument from the teams is clear: they believe that granting the injunction wouldn’t cause any harm to NASCAR. Instead, it would simply maintain the current status quo of the 36 charter teams. Although the two teams have filed lawsuits against the governing bodies, they still want to continue racing in NASCAR. Both 23XI and FRM have hundreds of people working within the teams to ensure things run smoothly.

Michael Jordan’s efforts from the start were to get a chance to negotiate the terms of the charter agreement. The two teams filed a preliminary injunction that aims to keep them racing as chartered teams in 2025 while they hash out their ongoing antitrust case against NASCAR. This is a big deal for them because racing without charters could mean significant financial setbacks. 23XI/FRM filed a reply to NASCAR’s response to the injunction motion. For both teams, there are millions of dollars on the line since sponsors already signed deals beyond 2024.

-23XI/FRM state open team agreement also requires them to waive right to pursue this type of lawsuit so injunction needed to race.
-Teams argue injunction wouldn’t harm NASCAR, just keep status quo of 36 charter teams.

NASCAR filed a formal response opposing the preliminary injunction, arguing that the extraordinary circumstances needed for such an injunction simply aren’t present. NASCAR insists this whole issue is more about contract terms than it is about antitrust laws. In their view, it’s a straightforward contract dispute rather than a legal battle that could shake the foundation of how things are run.

Michael Jordan is not one to sit on his hands

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The legal drama between Michael Jordan and NASCAR is heating up, and it’s not a typical game of basketball. Jordan, along with attorney Jeffrey Kessler, claims that NASCAR and CEO Jim France are behaving like “monopolistic bullies” in their attempts to silence dissenters. In their latest court filing, they argue NASCAR pushes back against anyone who dares to challenge their authority.

On the flip side, NASCAR isn’t backing down, branding Jordan and Kessler’s request for a preliminary injunction as a “masterclass in contradiction.” They believe it’s just a tactic to secure more cash and better contract terms that they couldn’t nail down in negotiations. In this back-and-forth, 23XI Racing and Front Row Motorsports are seeking a court order that would allow them to compete as chartered teams for the 2025 season, even though they haven’t signed NASCAR’s charter agreement.

NASCAR, however, is pushing back hard, arguing that the two teams are trying to use the antitrust process as a weapon to hurt the organization while avoiding the responsibilities of the charters they didn’t sign. Their legal filing states that the request for documents predating the four-year statute of limitations for antitrust claims is also off-base.

Kessler has countered these arguments, maintaining that the request for expedited discovery is completely reasonable and necessary to prove their case.