Michael Jordan’s 23XI Racing and Front Row Motorsports Launch Defiant Legal Offensive in NASCAR Charter War

Michael Jordan and Denny Hamlin own 23XI Racing, while Bob Jenkins owns Front Row Motorsports (FRM), which appears to be relying on their last option to retain the charter status. In a recent move, they appealed a recent ruling from the U.S. Court of Appeals, revoking their preliminary injunction.

The two Cup teams are fighting an antitrust lawsuit against NASCAR, having accused the racing organization of “monopolistic practices.” While the case is underway, a District Court previously granted their preliminary injunction request. That means the teams got charter status as they continued their legal battle against NASCAR.

However, the Court of Appeals recently revoked that status. Now the teams have no option but to appeal the decision. If things don’t turn in their favor, the two Cup teams risk losing all three of their charters mid-season.

23XI Racing and FRM Turn to Last Resort To Keep Charter Status

The Fourth Circuit of Appeals in North Carolina, while giving the ruling, said, “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 participate 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.”

However, before the charter status is revoked, the teams have an option of appealing, which they have recently exercised. Also, according to NASCAR journalist Bob Pockrass, “This will delay them losing the charters until seven days after the decision not to hear it again or a rehearing/decision.”

But this would not be enough, as the teams need the preliminary injunction at all costs. The injunction ensures the teams get an entry in every points race and a cut of the race purse. More importantly, it allows them to continue the lawsuit while reaping these benefits. Not having the preliminary injunction could harm them in a big way.

In addition, the team’s lawyer, Jeffrey Kessler, spoke about how this ruling could set a dangerous precedent if the decision is not reversed.

Kessler said, “If upheld, the ruling would set a dangerous precedent, allowing monopolists to shield themselves from legal challenges simply by requiring release language as a condition of doing business with the monopoly. Our lawsuit is about making NASCAR more competitive and fair. The release provision is just one of many anticompetitive tactics NASCAR has used to preserve its monopoly.”

23XI Racing and FRM have repeatedly spoken out about continuing the legal battle with or without the charter status. It’s unlikely that the lawsuit will end soon, and that has left a federal judge worried.

For now, only time will tell what unfolds in this case.