Michael Jordan’s racing team, 23XI Racing, has lost a significant legal battle in its effort to compete in the 2025 NASCAR season under a coveted charter system. In a decision issued Thursday, the US Court of Appeals for the Fourth Circuit overturned an earlier injunction that had temporarily granted the team charter status, marking a setback in Jordan’s broader challenge to NASCAR’s business model.

According to a Bloomberg report, the appeals court determined that the injunction, previously granted by a district court judge, improperly compelled NASCAR to enter agreements with 23XI and Front Row Motorsports that excluded standard legal terms — namely, a litigation release clause. The absence of that clause, the court said, went against typical contractual practices and gave the plaintiffs preferential treatment.

Judge Paul V. Niemeyer, writing for the three-judge panel, concluded that neither 23XI nor the lower court demonstrated how the release clause — a common requirement in NASCAR’s agreements — would harm competition. “Absent anticompetitive conduct in the service of monopoly power,” the opinion stated, businesses remain legally entitled to determine their own terms of engagement.

Related: NASCAR Urges Appeals Court to Overturn Injunctions in Ongoing Charter Dispute

The ruling undercuts the legal claims brought by 23XI and Front Row Motorsports, who sued NASCAR last year alleging the organization operates a monopoly over premier stock car racing in the United States. The suit targeted NASCAR’s charter system, which guarantees teams entry into major races and performance-based earnings — privileges not extended to so-called “open” teams that must qualify for each race individually.

Per Bloomberg, the Fourth Circuit found no credible basis for the lower court’s assumption that NASCAR’s requirement of a legal release amounted to anticompetitive behavior. The opinion emphasized that the release provision was broad and standard, covering a wide range of prior conduct, including any alleged violations of antitrust laws.

Niemeyer, joined by Judges Steven Agee and Stephanie D. Thacker, noted the injunction had no clear precedent and was unlikely to succeed on legal grounds. The panel’s opinion aligns with skepticism Niemeyer had expressed during oral arguments in May.

Attorneys for 23XI and Front Row, including Jeffrey Kessler of Winston & Strawn LLP, declined to comment on the ruling, Bloomberg reported.

The decision now forces 23XI to operate without the guaranteed access to races and financial benefits that charter status affords — a notable blow for a team backed by one of the most recognizable figures in sports.

Source: Bloomberg

Mark Martin’s Enormous Fortune Revealed: A Deep Dive into the Wealth of the NASCAR Icon

Renowned NASCAR Hall of Famer, Mark Martin, has not only left a lasting impact on the racing world but has also amassed a staggering net worth throughout his illustrious career. With an impressive 40 Cup Series career victories under his belt, Martin’s talent on the track is undeniable. Despite falling short of a championship title, he clinched the runner-up position in the NASCAR Cup Series standings five times, solidifying his status as a racing legend.

Beyond his achievements on the race track, the 66-year-old American veteran has proven to be a savvy entrepreneur, with a reported net worth of approximately $70 million as per CelebrityNetWorth. A significant portion of Martin’s wealth stems from his successful business ventures and lucrative endorsements, in addition to his earnings from race winnings and sponsorships.

Adding to his substantial net worth was Martin’s opulent lakefront home in North Carolina, which he sold for a whopping $2.425 million in 2017. Situated in an upscale area, the property boasted breathtaking views and top-notch amenities, reflecting Martin’s penchant for luxury.

Moreover, the racing icon delved into the automotive industry, owning multiple dealerships, including a Ford dealership in his hometown of Batesville, Arkansas. Despite retiring from racing in 2013 at the age of 54, Martin has managed to stay relevant in the NASCAR realm, maintaining his status as a revered figure in the sport.

In a recent turn of events, Martin made headlines with a cryptic comment on the heated debate surrounding NASCAR’s collaboration with Amazon Prime for broadcasting select races in 2025. While the partnership received accolades for its high-quality streaming and comprehensive coverage, it also sparked controversy among fans accustomed to traditional cable broadcasts.

Martin’s enigmatic remark in response to NASCAR journalist Jeff Gluck’s post stirred speculation about the racing icon’s potential foray into broadcasting. With his increased presence on social media and willingness to engage with fans, Martin’s rumored venture into the broadcasting booth could mark a significant development in the world of NASCAR, following the sport’s recent partnerships with various platforms.

Stay tuned as Mark Martin continues to make waves both on and off the race track, solidifying his legacy as a true icon in the world of NASCAR.

A federal appeals court ruled in favor of NASCAR on Thursday in the sanctioning body’s ongoing legal battle with Michael Jordan’s 23XI Racing and Front Row Motorsports.

The Fourth Circuit of Appeals in North Carolina overturned an injunction that allowed the teams to race as chartered teams as their lawsuit against NASCAR proceeded. The teams won the injunction in December after they were the only two teams in NASCAR’s Cup Series to not sign the current franchising agreement between NASCAR and its teams.

“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,” the decision stated. “And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.”

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Front Row and 23XI had said that NASCAR was monopolistic in its antitrust suit filed in October. Chartered teams receive guaranteed entries into every Cup Series race and, most importantly, get a bigger share of purse money from the season-ending points fund.

Per the terms of the decision, the teams have 14 days to ask for another hearing and the revocation of the charters — if it happened — wouldn’t go into effect for another week after that 14-day deadline. There’s still plenty of time for more legal machinations to happen before the teams’ charters would get taken.

Where everything stands now

There were signs the teams’ argument could be in trouble a month ago during a May hearing. The appeals court proceeding happened after NASCAR appealed the injunction in favor of the teams. A judge on the panel openly questioned the teams’ argument that they should receive the benefits of the charter contract while not signing the contract.

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From Sportsnaut:

“I had thought coming in and you can correct me, that the district court concluded that the (lawsuit release clause) was anticompetitive and therefore, to protect your antitrust claims, the court wanted you to be able to race but without a contract that included the release,” said [Judge Paul V.] Niemeyer, “and my concern and I’ll just lay it out there, I don’t understand the Section 2 analysis, what we need to have is the exercise of monopoly power to exclude competition.

“I can’t see why a release addresses competition in any sense. If you don’t want the contract, you don’t enter into it and you sue. But if you do want the contract, you enter into it, and you’ve given up past releases. But the Omega (a precedence case) is that you can’t have your cake and eat it too.”

The teams have been represented by famed antitrust lawyer Jeffrey Kessler. The 71-year-old has been on the winning side in previous high-profile sports cases like the NCAA’s lifting of its cap on college athlete compensation, the United States Women’s National Team’s pay discrimination case and even Tom Brady’s appeal of his four-game suspension as part of the “Deflategate” scandal.

“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,” Kessler said in a statement via NBC Sports. “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 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.”

Neither 23XI or Front Row seem to be at risk of failing to qualify for any races if they lose their charter protections because no race since the Daytona 500 has featured more than 40 teams attempting to qualify for the 40 available starting spots. In fact, all but one race since the 500 has not featured a full field.

The money, however, is a much bigger factor. Cup Series teams rely heavily on purse and points fund money from NASCAR. With chartered teams getting a much larger share of that money than open teams, the budgets of both 23XI and Front Row Motorsports could be heavily impacted.

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The decision could also lead to a fascinating dilemma. Both Front Row and 23XI expanded from two cars to three over the offseason by purchasing charters from the now-defunct Stewart-Haas Racing team that closed at the end of the season. NASCAR would assumably take over the ownership of the charters since SHR no longer exists and other chartered teams could end up getting larger shares of the money designated for chartered teams.

Front Row currently fields cars for Todd Gilliland, Noah Gragson and Zane Smith, while 23XI Racing has cars for Riley Herbst, Tyler Reddick and Bubba Wallace.

A major decision from the U.S. Court of Appeals today has changed the 23XI Racing, Front Row lawsuit against NASCAR. At least in the short term. This case is still set to go to trial on December 1, but what are the consequences for the teams now that the preliminary injunctions from the district court have been vacated?

Today’s ruling will not go into effect immediately. 23XI and FRM have the right to appeal to the entire court and must file that appeal in the next 14 days. If that appeal is not filed, the ruling will take effect seven (7) days after that. So, we are looking at a three-week timeline, at the earliest.

Jeffrey Kessler, attorney for 23XI Racing and Front Row in this case, released a statement. He does not believe this impacts the likelihood of winning the lawsuit at trial later this year.

On December 18, 2024, the district court entered a mandatory preliminary injunction. That injunction stated that NASCAR had to allow 23XI Racing and Front Row Motorsports to compete under the 2025 Charter Agreement with the teams’ two charters that they possessed under the previous agreement.

The injunctions from December 23 and 26, 2024, went further. The former prevented NASCAR from putting a stay on the original injunction, allowing it to go into effect as the Court of Appeals heard the case for itself. Then the latter injunction made it so NASCAR had to approve the sale of the Stewart-Haas charters to 23XI and FRM. All three injunctions have been vacated.

U.S. Court of Appeals ruling on 23XI, FRM vs. NASCAR

It appears that the U.S. Court of Appeals did not like the mandatory part of the injunctions. As it “alters” the status quo rather than maintaining the status quo, such as a prohibitory injunction. Perhaps even worse, the court found that the teams do not have a likelihood of success based on the merits of the case as it relates to their antitrust claims.

“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. And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.

“We therefore conclude that the district court abused its discretion in entering the preliminary injunction that it did. This is all the more true in view of the heightened standard for issuing a mandatory preliminary injunction and because the one here required two parties to engage in business that one party claimsto be illegal. … We express no view, however, on any aspect of the pending case beyond those stated herein with respect to the preliminary injunction. Accordingly, the injunctions of December 18, December 23, and December 26, 2024, are hereby vacated.”

The U.S. Court of Appeals did not feel that previous cases were cited in the district court ruling. In the instances where case law was applied, the appeals court felt it was applied incorrectly. So, that will have to be addressed on the teams’ appeal.

Consequences of U.S. Court of Appeals ruling

Should the ruling go into effect, this will have massive ramifications on the 2025 season. Losing out on charter payments can be a major issue for 23XI and Front Row for the rest of the NASCAR season. They have employees to pay, sponsorship agreements to uphold, and race cars to build. That takes money.

This ruling would make 23XI Racing and Front Row Motorsports compete as Open teams. They will have the status of all six of their collective charters removed. That will impact the teams in terms of charter payments. It could also end up violating driver contracts that the teams have signed and sponsor deals.

I think the biggest question right now is, what about the Stewart-Haas charters? If the acquisition of those cars is reversed, what happens to them? Haas Factory Team has stated they do not want to and cannot take on two additional charters. They are a one-car operation now. So, would NASCAR repossess them? There is language that underperforming teams can have their charters forfeited based on the last three years of performance, and if NASCAR makes a decision to do so.

Long story short, HUGE financial hit, possible contract violations with drivers and sponsors, and a big question mark about the Stewart-Haas charters. We will see if an appeal will swing things back in favor of 23XI and FRM, but NASCAR has won a big victory today.

Moving forward, this changes things for the entire Cup Series. Other teams will now be given a bigger share of charter money. At least, in theory. It remains to be seen how NASCAR will respond to today’s ruling.

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.

MBM Motorsports is set to return to the NASCAR Craftsman Truck Series with driver Tyler Tomassi competing in the Ford F-150 during the MillerTech Battery 200 at Pocono Raceway on June 20. Tomassi, expressing his excitement, reflects on his childhood memories at Pocono and recognizes the opportunity to race in front of a northeastern crowd. The 22-year-old has valuable late model experience and will be making his sixth Truck Series start, as MBM owner Carl Long aims to enhance Tomassi’s progression behind the wheel. The team previously achieved a Top 10 finish at Pocono in the NASCAR Xfinity Series. Confirmation of Tomassi’s vehicle number and sponsorship details will be released later, while FOX Sports 1 will provide live coverage of the event.

By the Numbers

• Tomassi will be making his sixth start in the Craftsman Truck Series.
• This will be the fourth Truck race of the 2025 season for Tomassi.

State of Play

• The MillerTech Battery 200 is part of a NASCAR triple header weekend at Pocono.
• MBM Motorsports has previously achieved an 8th-place finish at Pocono in 2020.

What’s Next

As the race date approaches, further updates will be provided regarding Tomassi’s vehicle number and any potential sponsorships, which are still available for interested parties. The team’s focus will be on fulfilling the NASCAR approval process for Derek White to enhance their future racing prospects.

Bottom Line

With Tomassi’s enthusiasm and the backing of MBM Motorsports, the upcoming race at Pocono presents a pivotal moment for both the driver’s career and the team’s ongoing efforts in the NASCAR Craftsman Truck Series.