NASCAR is not going to back off so easily. Before 2016, Cup Series teams had very little guarantee of profits in the stock car racing series. When a team went out of business because of unfortunate circumstances, it had nothing of value to sell beyond its race shops. The outdated cars and equipment were sold for pennies on the dollar. The charter system reversed that, as teams could buy and sell charters – an argument that Michael Jordan needs to think about.

The NASCAR lawsuit has been raging since October 2024, with the ball in Michael Jordan’s court. Both 23XI Racing and Front Row Motorsports won the preliminary injunction motion to run as chartered teams in 2025 while pursuing the lawsuit. However, NASCAR’s recent move can cause ruptures among the entire grid.

Adopting a ‘divide-and-conquer’ approach

The Cup Series teams already diverted when the new charter agreement was released last September. Despite tall claims about the Race Team Alliance’s unity, 13 out of 15 teams signed the charter deal. Some felt that they had no choice, with Hendrick Motorsports owner, Rick Hendrick, saying, “Not everybody was happy. But in any negotiation, you’re not going to get everything you want”. However, NASCAR is now widening that rift between those 13 and Michael Jordan’s side. An hour before the time trials for the much-awaited Daytona 500 race kicked off, NASCAR filed a 68-page appeal.

From arguing that Judge Kenneth Bell had erred in granting the two plaintiffs charters to claiming that not liking a contract does not amount to an anti-trust case, the appeal included a lot. But it also dropped a very concerning scenario for Michael Jordan and his fellow team owners. Journalist Jenna Fryer mentioned in her article that if 23XI Racing and FRM end up winning the lawsuit, NASCAR would respond in its own way. “Should 23XI and Front Row prevail, it is believed NASCAR will eliminate the charter system outright rather than renegotiate new charters.”

This is not music to the ears of team owners. Charters guarantee entry to every Cup Series race, and thereby a portion of the payouts involved. Following a mishap, teams can sell their charters on the open market for millions of dollars. For instance, Liv Fast Motorsports sold its charter to Spire Motorsports for $40 Million in 2023. This is something that is far more valuable than the pre-charter era.

Top Comment by 28115fam

I’ll have to boycott this season – and living in Mooresville NC, I’ll be d@mn careful where I’m spending my...more

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Evidently, NASCAR is in a battle mode against Michael Jordan. In the long appeal recently filed, the sanctioning body tried to show 23XI and FRM as separate from the Cup Series grid. “While every other team owner that was offered a new Charter with these better terms accepted it, these two held out — raising concerns about several provisions but not the mutual releases. NASCAR eventually withdrew its offers to Plaintiffs and moved forward with planning its 2025 Cup Series season without them as chartered teams. So 23XI and Front Row turned to the courts, attempting to transform the Charter’s standard release provision into a trump card to belatedly secure, outside of negotiations, the Charters they regretted rejecting.”

While NASCAR is firing its shots, Michael Jordan’s side is preparing itself. It is quietly working on its response and displaying defiant colors as well.

Michael Jordan’s team wore rebellious colors

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The season has barely begun, and 23XI Racing is already flaunting some dazzling paint schemes. To celebrate the 40th anniversary of Michael Jordan’s Air Jordan 1 brand, Tyler Reddick sported special colors. He covered the Jordan brand logo with black tape, commemorating the NBA controversy that unfolded in the 1980s. NBA wanted to ban Jordan’s black and red shoes, claiming they had to be 51% white according to uniform mandates – and fined him every time he wore them to a game. Incidentally, Nike covered those costs as an attempt to muffle the huge profits Jordan’s brand was accruing.

Tyler Reddick’s No. 45 Toyota livery paid tribute to this incident as part of the ‘Unbannable’ campaign. However, it could also be interpreted as 23XI Racing prevailing against NASCAR in the lawsuit. Jordan Brands highlighted the significance of this promotional campaign in a statement. “The effort is part of a year-long celebration aimed to inspire people to chase after their own greatness that the Jordan Brand believes is in everyone.” Even Tyler Reddick hyped it up in an interview with FOX Sports. “Jordan Brand is a global brand, right?” Reddick answered. “They have a life outside of racing, and they sell shoes all over the world.”

NASCAR is currently trying to topple the lawsuit’s popularity by pitting the grid against Michael Jordan. In the meantime, Jordan and Co. are also rolling up their sleeves. Who do you think will prevail as the lawsuit drama continues to take more twists and turns?