The tensions from the 23XI Racing lawsuit are rising by the day as the teams have now lost the chance of participating in 2025 as a chartered team. The two teams claim NASCAR has a stranglehold on the sport, pointing to control over racetracks, exclusivity deals, and ownership of parts and cars as evidence of monopolistic behavior. But did NASCAR respond?
NASCAR’s charter system, which guarantees race spots and prize money for teams, is being called out for allegedly limiting competition. According to the teams, it benefits NASCAR while squeezing team owners, drivers, sponsors, and even fans. There has recently been an update straight from Bob Pockrass on X (formerly Twitter) on the situation.
As usual, NASCAR had some sharp words in response to the motion filed by 23XI and Front Row Motorsports to expedite the appeal process. In the statement, NASCAR dismissed the urgency of the motion, pointing out that “there is … certainly no urgency that would justify Plaintiffs’ extraordinary request to require NASCAR to file its opening brief within a mere 12 days, over a period that includes the Thanksgiving holiday.”
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NASCAR on 23XI / FRM motion to expedite appeal: “There is … certainly no urgency that would justify Plaintiffs’ extraordinary request to require NASCAR to file its opening brief within a mere 12 days, over a period that includes the Thanksgiving holiday … (1/2)
— Bob Pockrass (@bobpockrass) November 18, 2024
And it didn’t stop there. NASCAR also flagged how the proposed timeline would be unfair to the court, stating, “Plaintiffs’ proposed schedule is highly unfair to this Court: it would give the Court only one week with that briefing before oral argument.”
The teams sought a preliminary injunction to maintain their chartered team status during the legal fight but were denied. NASCAR has removed the contentious anticompetitive release requirement, so 23XI Racing and Front Row can still compete in 2025—but only as open teams for now.
Jeremy Kessler’s update to the lawsuit
The legal drama between Michael Jordan’s 23XI Racing, Front Row Motorsports, and NASCAR is far from over—but there’s finally a glimmer of clarity for 2025. In a major update, both teams have confirmed they’ll still be on the grid next year, albeit under a slightly different setup.
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ICYMI, the feud started when 23XI and Front Row refused to sign NASCAR’s revised charter agreement back in September, calling out what they viewed as “monopolistic” practices. The charter, a prized guarantee of race entries, prize money, and other perks, is central to any team’s sustainability in NASCAR. Without it, teams are essentially racing as independents—a big financial and operational disadvantage.
Fast forward to now, and their lawyer, Jeffrey Kessler, has announced a partial win: NASCAR removed an anticompetitive clause from its open team agreement, meaning 23XI and Front Row can still compete as open teams while their antitrust case inches through the courts. Sure, it’s not the ideal scenario—being an open team lacks the same financial perks—but it keeps them in the game for now.
Kessler summed up their stance perfectly: “Both race teams are pleased that they will continue to be participants in the sport they love while fighting to make it fair and just for all.” The battle isn’t over, though. The teams are still pushing the 4th Circuit Court to grant an injunction allowing them charter status for 2025. Until then, expect this legal saga to continue revving in the background while drivers like Tyler Reddick, who made this year’s Championship 4, keep the focus on-track.
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Do you think that Michael Jordan made the right move by picking a fight with NASCAR? Or will he win the lawsuit and change the way charter deals work in the future? Share your thoughts in the comments below.
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Is NASCAR's charter system stifling competition, or is it necessary for the sport's stability?
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Is NASCAR's charter system stifling competition, or is it necessary for the sport's stability?
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