On Wednesday, Michael Jordan’s NASCAR team filed a 43-page-long Anti-trust Lawsuit against the sport’s sanctioning body and its CEO Jim France. In between accusing the France family of ‘wheeling and dealing its monopoly in smoke-filled back rooms’ and ‘blocking the formation or growth of any competing premier stock car racing series’, the team in question, 23XI Racing, has expressed many grievances against NASCAR.

And they’re not alone. Front Row Motorsports, owned by Bob Jenkins, and Jeffrey Kessler, one of the best anti-trust lawyers in America, has joined them. But buried in the fine print of paragraph 35 is a juicy tidbit that’s flying under the radar—rumors about 23XI and Stewart-Haas Racing cutting a deal on charter trades weren’t just hearsay. The official word says 23XI’s eyeing one of Tony Stewart’s Xfinity talents. But with this lawsuit mucking up the picture, NASCAR has slammed the brakes on those transactions.

Next Monster Energy star stalled by Michael Jordan’s legal dilemma

Let’s make one thing clear. “23X1 plans to race next year” – those are the words of co-owner Curtis Polk himself. The same goes for Bob Jenkins, who “made a commitment to our teams [Front Row Motorsports] and staffing people and preparing for 2025,” as per Bob Pockrass of Fox Sports. Moreover, both teams wish to run three-car operations next year. But with the state of things, that is now a sketchy situation.

The media well documented Front Row’s charter swoop on SHR back in May, and according to Sports Business Journal, it supposedly set them back a cool $20-25M. Around a month later, Gene Haas announced his solo entry into the Cup Series with Cole Custer and the Haas Factory Team (HFT). In August, Trackhouse Racing announced the acquisition of a third charter for Shane van Gisbergen. But the big mystery was: Where’s that fourth and final Stewart-Haas charter headed?

Well, paragraph 35 of the Lawsuit filed in the District Court of North Carolina states, “23XI is currently in the process of acquiring a third charter. 23XI and Stewart-Haas Racing, LLC entered into a purchase agreement on August 7, 2024, but the transaction is still in escrow and requires approval from NASCAR.” In layman’s terms, the sport’s governing body will withhold their deal for the fourth charter, signed on August 7th. 23XI Racing is the fourth buyer. The financials are still unclear, but according to NASCAR Rumor hub, @greenflagpitstop on Instagram, “Riley Herbst is still considered as the top candidate for the 3rd ride due to his involvement with Monster Energy.”

Monster Energy already sponsors 23XI Racing and has become almost synonymous with the black #45 Toyota of Tyler Reddick. A third car for Riley Herbst wouldn’t be a stretch, considering he’s contending for the Xfinity championship this season. But the 25-year-old’s dreams of a full-time ride in 2025 are on hold yet again, under the umbrella of a landmark moment in NASCAR history. And that’s not all; the filing also asserts, “In the interim, Stewart-Haas Racing, LLC signed NASCAR’s 2025 Charter Agreement.”

On the other hand, Front Row’s charter for their third car is also “in escrow” as per the document. They have already poached Noah Gragson from Stewart-Haas to replace Michael McDowell in the #34 Ford starting in 2025. Regardless, in case NASCAR refuses to back down and sidelines both teams next year, what would that mean in the bigger picture?

Open entries or open war on NASCAR?

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First things first. The plaintiff’s representative, Jeffrey Kessler, is no ordinary lawyer. He’s the guy who helped bring unrestricted free agency to the NFL and led the charge for equal pay in the US Women’s Soccer team’s (USWNT) battle against the US Soccer Federation (USSF). With extensive experience in handling Anti-trust cases, Kessler assured the audience, “I spent my career where we’re representing plaintiffs who have to continue to do business with or be employed by the people we’re suing…”

“And I will tell you that usually on the other side, there will be counsel who will caution the other side… to not treat the parties suing unfairly, because if that were to happen, it will be immediately addressed.” – outlined Kessler. Under the counsel of Winston & Strawn LLP law firm, a joint statement from both teams suggested they would file a preliminary injunction that allows them “to race in the next calendar year under the 2025 charter agreement,” while in pursuit of justice. Hence, it would appear that Michael Jordan’s collective has officially laid out demands to counter those presented by NASCAR.

However, if NASCAR denies the ‘injunction’, the legal language says that 23XI and Front Row will risk running as “open” teams. This could bring about bigger antitrust hits and possibly push the teams out of NASCAR altogether. But the fact remains: either team would face millions of dollars in losses fielding open entries. For reference, in the 2025-2031 deal, the lowest-ranked charter is projected to pull in around $8.5 million annually. According to the lawsuit, “it costs approximately $18 million per year to run one chartered team,” barring driver salaries. Odds that negative would not make sense to anyone, especially long-time business owners like Michael Jordan or Bob Jenkins.