There seems to be no love lost between NASCAR and 23XI Racing. The relationship between the two has been strained, ever since the team, co-owned by Michael Jordan and Denny Hamlin, took them to court for ‘monopolistic practices’. Over the years, the France family has ruled the sport with an iron fist, and the ‘rebellion’ hasn’t gone down well with the sports’ hierarchy, who haven’t taken too kindly to the accusations levied against them.
With the tension at an all-time high, it’s not surprising that NASCAR president Steve Phelps has aimed a sly comment towards 23XI Racing. With the ongoing court case taking more twists and turns than the Chicago Street Course, an exchange of words was an inevitable reality considering the ongoing situation.
Steve Phelps reflects on the positives of 2024
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It should come as no surprise that 23XI Racing has seen a mercurial rise in NASCAR. Backed by Michael Jordan’s star power and financial resources, along with Denny Hamlin’s invaluable knowledge, the team was bound to succeed in the Cup Series. Having a technical alliance with Joe Gibbs Racing helped expedite the process, and the years of hard work and effort finally paid off in 2024. Tyler Reddick not only won the regular series championship but also made it to Championship 4 at Phoenix Raceway. A landmark achievement for a team that didn’t exist before 2020.
When asked by The Athletic if there were any moments he was proud of, NASCAR president Steve Phelps candidly said, “The close finishes, that was really cool. The continued schedule innovation, I think our fans have come to expect that, and you’ll see that again in ’25. It’s pretty cool that 23XI competed for a championship so soon in their life cycle of being a race team. And one of the things I’m most proud of is, if you look at the (TV) ratings, we started off minus-27 (percent) and somehow we finished in the positive numbers from a viewership standpoint. I think that is a testament for the strength of the fan base and where the sport is and the popularity of the sport.”
While Phelps’ comment may just be a harmless observation, it could also have an underlying meaning. With the plaintiffs accusing the sanctioning body of being ‘monopolistic bullies’, is the NASCAR president highlighting 23XI Racing’s success to bring attention to their privileges? While it’s purely speculatory at this point, Steve Phelps might be indicating that Michael Jordan and Denny Hamlin’s co-owned team may not have enjoyed the success that they did, if it were not for NASCAR’s charter system and existing structure, the very factors that they are being taken to court for.
23XI Racing along with Front Row Motorsports rejected NASCAR’s proposal ahead of the opening playoff race at Atlanta Motor Speedway. Both teams claim that others were coerced into putting pen to paper, or risk losing their charters in 2025. However, the new agreement also provides better financial terms to the 13 teams that agreed to their conditions, a factor that Steve Phelps may be trying to highlight when reflecting on improved viewership numbers. With NASCAR signing a multi-billion dollar media rights deal with NBC, Fox, Amazon, and Warner Bros Discovery, is the sport in a better state than ever before?
NASCAR hits back at the revised preliminary injunction
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The ongoing NASCAR lawsuit has taken plenty of unexpected turns. Both 23XI Racing and Front Row Motorsports were hoping to retain their charters amidst the ongoing legal battle by filing a preliminary injunction. However, Judge Frank D. Whitney denied the request and even though an appeal was filed initially, it was quickly withdrawn after the sanctioning body allowed them to compete as open teams next year. But the plaintiffs were far from done, and they went on to file another preliminary injunction with new evidence backing up their request.
The decision didn’t go down well with NASCAR, who issued a response through their legal representative. Lead attorney Christopher Yates said, “A month ago, the Court denied Plaintiffs’ first Motion, characterizing their claimed harm as ‘speculative’ and ‘possible,’ but not ‘immediate’ or ‘irreparable. After seeking and then dismissing an expedited appeal, Plaintiffs now claim ‘changed circumstances’ to try to overcome this ruling. Yet, even with their manufactured evidence, Plaintiffs still fall far short of a clear showing of irreparable harm.”
Yates added, “Plaintiffs cannot manufacture a crisis by filing a lawsuit and then demanding relief from its consequences—that is just as inequitable as it is self-inflicted. And to the extent sponsor concerns are driven by the fact that Plaintiffs could fail to qualify for a race, such concerns are, as this Court already held, speculative.” The claims that sponsors will not stick around are speculative as per NASCAR. They also feel that 23XI and FRM are demanding relief from issues that they have caused themselves.
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While NASCAR’s reaction to the second preliminary injunction is unsurprising, it will be interesting to see the court’s verdict after being presented with the ‘new evidence’. Being able to retain their charters will be a big win for 23XI and Front Row Motorsports, who run the risk of missing out on races and spending an exorbitant sum of money to compete in the Cup Series next year. Will the plaintiffs’ lead attorney Jeffrey Kessler prevail under dire circumstances? Time will tell.