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, has joined them. Representing them is attorney Jeffrey Kessler, one of the best anti-trust lawyers in America. 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.

“23XI is currently in the process of acquiring a third charter. 23XI and StewartHaas Racing, LLC entered into a purchase agreement on August 7, 2024, but the transaction is still in escrow and requires approval from NASCAR,” the lawsuit read, as reported by the Associated Press. This came after Denny Hamlin’s comments in June at Gateway Motorsports Park, where he didn’t seem too enthusiastic when asked about potentially expanding 23XI to three charters.

Explaining that he and Michael Jordan founded the team with the intention of making it a three-charter operation, Hamlin said that the timing needed to be right. This was before NASCAR finalized a new charter agreement when there was a constant back-and-forth between the organization and its teams. “There’s certainly bigger priorities for us now and making sure we still have the two charters that we’ve got.” Well, four months on, while they have their two charters, it’s the third that’s in question. And so is the future of one of Tony Stewart‘s Xfinity talents.

The thing is, neither 23XI Racing nor Front Row Motorsports signed the new charter agreement. Why would they, considering they believe that the governing body and the France family have “anti-competitive and monopolistic control of the sport?” But 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?

Per 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.” However, because of the fact that NASCAR still hasn’t approved the purchase of the third charter, the opportunity Riley Herbst has to make the jump to the Cup Series may not materialize. But if this lawsuit has an end in sight, and NASCAR gives the green light to Michael Jordan & Co., the 25-year-old driver will most likely get the seat.

Monster Energy already sponsors 23XI Racing and has become almost synonymous with the black No. 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 No. 34 Ford starting in 2025. Coming back to the lawsuit. If you think about it, the fact that Jeffrey Kessler included that Hamlin & Co. entered a purchase agreement for a third charter may work in their favor. How, you may ask?

Back when the negotiations were ongoing, Denny Hamlin didn’t mince his words while explaining the situation. “Every proposal [for the charter agreement] they send back to us is worse than the previous. That is factual; it keeps getting worse. We are worse off than we were two years ago.” Now, it’s in the fine print that both teams are looking to expand despite not being in favor of NASCAR’s governance and functioning. And doesn’t that show they’re interested in the sport’s growth and want to invest in the future?

After all, that’s precisely what their statement said. “We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport…” 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?

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 anti-trust 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 are that negative would not make sense to anyone, especially not to long-time business owners like Michael Jordan or Bob Jenkins.