A three-judge federal appellate panel ruled Thursday in favor of NASCAR in the antitrust lawsuit filed by two teams, one owned by Michael Jordan, and vacated an injunction that required 23XI Racing and Front Row Motorsports to be recognized as chartered teams as their case snakes through the legal system.

Both race teams sued NASCAR late last year after refusing to sign new agreements on charter renewals. The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates. 23XI, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, allied with Front Row in suing NASCAR after 13 other organizations signed the renewals last September and those two organization refused.

“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,” said Jeffery Kessler, attorney for 23XI and Front Row. “This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for Dec. 1.

“We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”

The two teams sued and asked for a temporary injunction that would recognize them as chartered teams for this season. The antitrust case isn’t scheduled to be heard until December.

The teams said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick’s contract would have made him a free agent if the team could not guarantee him a charter-protected car.

The original judge ruled that NASCAR’s charter agreement likely violated antitrust law in granting the injunction. But when they heard arguments last month, the three judges at the the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, indicated they were skeptical of that decision.

The judges said in Thursday’s ruling they were not aware of any case that supports the lower court’s theory of antitrust law, so they vacated the injunction.

“In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory,” the court said. “And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.”

The teams have 14 days to appeal to the full court. The injunction also has no bearings on the merits of the case, and the earliest NASCAR can treat the teams as unchartered — a charter guarantees their organizations a starting spot each week and prize money — is one week after the deadline to appeal, provided there is no pending appeal.

NASCAR has not said what it would do with the six charters held by the two organizations if they are returned to the sanctioning body. There are only 36 chartered cars for a 40-car field. If the teams do not appeal, the six entries would have to compete as “open” cars — which means they’d have to qualify on speed each week to make the race and they would receive a fraction of the money.

It’s not clear what would happen to Reddick’s contract. He goes to Michigan this weekend ranked sixth in the Cup Series standings. Both organizations are still seeking a win this season — Hamlin’s three victories are with Joe Gibbs Racing, the team he drives for.

Reddick is last year’s regular-season champion and competed for the Cup title last November.

Darrell “Bubba” Wallace is one of the most recognized names in NASCAR. Here’s what you need to know.

23XI Racing and Front Row Motorsports (FRM) have suffered a major setback in their legal battle against Nascar over the charter system after the US Court of Appeals overturned the injunction agreed in December 2024.

The injunction had meant 23XI and FRM were allowed to compete in the Nascar Cup Series and receive the same benefits as other chartered teams while still pursuing their lawsuit against the series. The ruling also granted the teams permission to purchase charters from Stewart-Haas Racing and that Nascar must approve those purchases.

This has now been overturned in a hearing where judges questioned the teams’ attorney Jeffrey Kessler on why they should enjoy the benefits of the charter agreement while suing Nascar over the particulars of it. The fact this case was without precedence was cited as a key reason for the ruling, with the judges stating that the ‘theory of antitrust law’ asserted by 23XI and FRM ‘is not supported by any case of which we are aware’.

The US Court of Appeals also said that the teams failed to make a ‘clear showing that they were likely to succeed’ in their case. Without that, the injunction was revoked.

The ruling won’t take effect for two weeks, which gives 23XI and FRM the chance to appeal. But, if this passes, the teams will have to compete as open teams for the remainder of the 2025 season.

As open entries, 23XI and FRM are no longer guaranteed entry to races and will earn less than a third of what a chartered team makes for competing in a race. FRM team owner Bob Jenkins claimed in the original injunction that the payout from the purse would be so low as an open entry that it would not cover the costs of going to the racetrack.

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It should be noted, though, that both teams were prepared to enter the 2025 season as open entries before the surprise decision to allow an injunction was passed. 

‘We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,’ read a statement from Kessler.

‘This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for December 1st.

‘We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.’

This is the latest twist in a long and complicated case that has seen the two teams initially refuse to sign Nascar’s proposal for a new charter agreement in September 2024 before filing an antitrust lawsuit against the series, in which they accused the organisation of monopolistic practices.

Their request for an injunction was initially rejected by US District Judge Frank D Whitney, but then US District Judge Kenneth D Bell later agreed to the injunction.

The trial date for the lawsuit is set for December of this year.

This was only fueled further when controversial rising star Carson Hocevar was congratulated by Hendrick Motorsports vice president of competition, Chad Knaus, following his second-place finish in Nashville.

However, should Elliott wind up replacing Larson, he wouldn’t have to go far for advice, with Supercar legend Shane van Gisbergen currently knee deep in his first full Cup Series season after making the move from Australia.

The 36-year-old three-time champion currently drives Trackhouse Racing’s No. 88 Chevrolet, and while he won his series debut in 2023, he has yet to return to victory lane.

Hendrick Motorsports, the 14-time NASCAR Cup Series champions, announced a major new multi-year agreement with Phorm Energy on June 5. The innovative deal, which includes the newly introduced energy drink brand supported by beverage leader Anheuser-Busch, was effective immediately and runs through the 2027 season.

This partnership agreement marks a critical collaboration for Phorm Energy, as it aims to leverage the Hendrick and NASCAR platforms’ capabilities to bring its product to the highly competitive market.

Phorm Energy Has Partnered with Hendrick Motorsports’ No. 24 in a Multi-Year Sponsorship Deal

The powerful agreement includes marketing partnerships that are a crucial part of NASCAR’s sponsorship model. Phorm Energy will assume the primary sponsorship of William Byron’s No. 24 Chevrolet Camaro ZL1 for a pair of races in the 2026 Cup Series season, expanding to four races in 2027.

Announcing a new partnership with @phormenergy because training doesn’t stop when the race does.

https://t.co/7bInbciLjV pic.twitter.com/9jicgRGmGm

— Hendrick Motorsports (@TeamHendrick) June 5, 2025

Apart from anchor sponsorships, Phorm Energy will also become a full season associate partner. The beverage company seeks to raise its stature by partnering with the No. 5, No. 24, and No. 48 Chevrolets driven by Kyle Larson, William Byron, and Alex Bowman, respectively.

The multi-year contract includes the 2025, 2026, and 2027 NASCAR seasons. Sal Frisella, CEO of 1st Phorm, emphasized the need for strategic alignment.

“Launching Phorm Energy is a huge moment for our team, and partnering with Hendrick Motorsports is just another way we can continue to grow and deliver something truly special,” Frisella stated, via Racing America.

“We have built this brand for people that embrace the grit and grind in their everyday lives and that’s something that Hendrick Motorsports and their drivers inherently know and understand. We know we found the right partner in Hendrick Motorsports and together we have big plans.”

Performance Center Partnership Fuels Hendrick’s Athlete Development

The collaboration extends far beyond the racetrack. It deeply integrates into Hendrick Motorsports’ significant investment in athlete performance and well-being. Phorm Energy branding and products will feature prominently within the team’s new 35,000-square-foot athletic center and corporate meeting space.

Construction crews broke ground on this flagship complex at Hendrick’s North Carolina campus in April 2025. It will function as the central hub for Hendrick Motorsports’ training regimens, recovery protocols, and overall health initiatives. Phorm Energy’s presence there underscores the shared focus on peak performance.

Jeff Gordon, Vice Chairman of Hendrick Motorsports, highlighted the opportunity and alignment. “It’s an amazing opportunity to work with a powerhouse like Anheuser-Busch, as they launch Phorm Energy and build something new,” Gordon said.

“As a brand grounded in shared values of dedication and hard work, we’re proud that the No. 24 team and our incredible athletes get to be part of their community. We’re making a major investment in our facilities to support our teammates with the best possible resources, and it’s exciting to have Phorm Energy involved from day one. We look forward to collaborating on a distinctive and authentic program.”

The newly launched beverage company is trying to grab the NASCAR market by endorsing high-profile faces. Phorm recently endorsed Kyle Busch, the two-time NASCAR Cup Series champion, despite his rocky 2025 season.

Phorm Energy — the first product from the partnership of Anheuser-Busch, 1st Phorm, and UFC President Dana White — enters the market with four varieties: Screamin’ Freedom, Blue Blitz, Orange Fury, and Grape Smash.

Recently it was revealed that the current NASCAR CEO Jim France attempted to sponsor fielding a NSCAR Cup Series car with Spire Motorsports. The co-owner of the sport was looking to give a Cup seat to his IMSA driver Jack Aitken. They would have made the 29-year-old driver the first driver to race for France in both series, which is owned by NASCAR.

The plan was to race at Sonoma, the road course even that would match the drivers’ sports car racing experience. But Jim France decided to call of the attempts and talking about it in the recent episode of the Dale Jr. Download podcast, Hall of Famer Dale Earnhardt Jr. highlighted that Indy 500 factor behind the decision to back down.

This idea of Jim France getting Spire to do this deal so he could run this driver, all of this has been probably worked on for a month, two months, maybe more. They were probably planning this, maybe they saw what went down at [IndyCar] and had second thoughts.

Dale Earnhardt Jr. said. Via Dale Jr. Download.

At the 2025 Indy 500, two Team Penske Racing cars were found having illegal changes made and the team received massive penalty. The sports integrity came into question, as the team owner Roger Penske owns both the championship as well as the iconic Indianapolis Motor Speedway. The teams past success even came into question.

This showed the France family how tough it is going to be to navigate the double ownership factor and how it is going to affect the sport as a whole. According to Dale Jr. they were forced to have second thoughts and considering the situation the sport is in, decided to back down from the move though they had the support from some big names of the sport.

I’m certain they saw what went down in Indy and thought, ‘Let’s rethink this. Should we do this? Should we not?’ I agree. It’s problematic at Indy at the level. It’s a tough thing to navigate where Penske is competing, but also the owner of the Series.

Dale Earnhardt Jr. added.

Dale Earnhardt Jr. explains why Roger Penske was able to race full-time in IndyCar unlike Jim France

Then in the same discussion the JR Motorsports co-owner, who is in the same situation with his CARS Tour Series, explain how Roger Penske can make the IndyCar moves smoother. Being someone that has the legacy and respect of the industry has the respect alongside trust of the garage. But France doesn’t have that that luxury of trust in the garage.

The thing about Roger Penske is he has so much respect amongst the industry. This is not a great time in the industry for Jim with the lawsuit. Is this an issue if everybody, the industry leaders and the charter owners all thought everything was going perfectly?

Dale Earnhardt Jr. said.

The lack of trust is primary due to the new charter deals; the controversies he has been part of over the years and the recent lawsuit. This puts him in a tough spot even for an open car entry while Penske has earned the trust with his openness regarding the series.

Would they mind then if Jim ran an open car with this guy through Spire? Probably not. That’s why Roger Penske has been able to get to this point at least without any issue.

Dale Earnhardt Jr. added.

The comments from the Hall of Famer are on point and it’s not the right time for France family to publicly enter the sport. Since they have plans to have charters, they should do that by having the team leaders that has no relationship to the series ownership.

Also Read: Kyle Petty Declared Carson Hocevar Is Racing “Exactly” Like Dale Earnhardt

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A three-judge federal appellate panel ruled Thursday in favor of NASCAR in the antitrust lawsuit filed by two teams, one owned by Michael Jordan, and vacated an injunction that required 23XI Racing and Front Row Motorsports to be recognized as chartered teams as their case snakes through the legal system.

Both race teams sued NASCAR late last year after refusing to sign new agreements on charter renewals. The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates. 23XI, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, allied with Front Row in suing NASCAR after 13 other organizations signed the renewals last September and those two organization refused.

“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,” said Jeffery Kessler, attorney for 23XI and Front Row. “This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for Dec. 1.

“We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”

The two teams sued and asked for a temporary injunction that would recognize them as chartered teams for this season. The antitrust case isn’t scheduled to be heard until December.

The teams said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick’s contract would have made him a free agent if the team could not guarantee him a charter-protected car.

The original judge ruled that NASCAR’s charter agreement likely violated antitrust law in granting the injunction. But when they heard arguments last month, the three judges at the the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, indicated they were skeptical of that decision.

The judges said in Thursday’s ruling they were not aware of any case that supports the lower court’s theory of antitrust law, so they vacated the injunction.

“In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory,” the court said. “And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.”

The teams have 14 days to appeal to the full court. The injunction also has no bearings on the merits of the case, and the earliest NASCAR can treat the teams as unchartered — a charter guarantees their organizations a starting spot each week and prize money — is one week after the deadline to appeal, provided there is no pending appeal.

NASCAR has not said what it would do with the six charters held by the two organizations if they are returned to the sanctioning body. There are only 36 chartered cars for a 40-car field. If the teams do not appeal, the six entries would have to compete as “open” cars — which means they’d have to qualify on speed each week to make the race and they would receive a fraction of the money.

It’s not clear what would happen to Reddick’s contract. He goes to Michigan this weekend ranked sixth in the Cup Series standings. Both organizations are still seeking a win this season — Hamlin’s three victories are with Joe Gibbs Racing, the team he drives for.

Reddick is last year’s regular-season champion and competed for the Cup title last November.

Darrell “Bubba” Wallace is one of the most recognized names in NASCAR. Here’s what you need to know.