Courts Jumps in Defense of Michael Jordan & Co as Federal Judge Locks NASCAR Out of Business

5 min read

The NASCAR world was rocked by a legal storm with early 2025 bringing an unprecedented showdown between the sanctioning body and two of its teams: 23XI Racing, co-owned by NBA legend Michael Jordan and Denny Hamlin, and Front Row Motorsports. The heart of the dispute lies in NASCAR’s controversial call not to automatically renew the teams’ existing charters, licenses that guarantee race entry and a slice of broadcast revenue.

Introduced in 2016 to stabilize team investments, these charters are a lifeline for business security in the sport. When NASCAR decided to hold back renewals amid ongoing charter agreement talks, 23XI and Front Row fired back with a federal antitrust lawsuit in October 2024, accusing the body of monopolistic practices. They argue that NASCAR’s grip on charters stifles fair competition and undermines their investments and operational stability, turning the garage into a tense battleground.

Things heated up in June 2025 when a federal court denied the teams’ motion for a preliminary injunction to block NASCAR from enforcing charter removal right away. Without it, 23XI and Front Row briefly lost their chartered status, risking missed races and sponsorship cash. But the teams didn’t back down, appealing for reconsideration and snagging a short-term reprieve.

The fight has only grown fiercer, with Denny Hamlin dropping public hints that the full story behind NASCAR’s charter handling will “all be exposed” when the trial kicks off in December 2025. That uncertainty has rattled sponsors and driver retention plans, leaving the sport on edge as the legal saga unfolds. But a recent development has now given a sigh of relief to Hamlin and MJ, shifting the momentum in this high-stakes drama.

Latest development

In a major turning point, a federal judge has stepped in with a ruling that brings some breathing room for 23XI and Front Row Motorsports. The judge has decided that the teams will keep their race entries under current charter terms until a decision on the preliminary injunction is reached on August 28, 2025. Even better, NASCAR has been barred from selling any vacated charters in the meantime, effectively locking the sanctioning body out of reshuffling the charter landscape while the case stays active. This judicial move offers temporary protection to Jordan and his crew, shielding them from immediate operational harm as the broader antitrust claims head toward trial.

 

Preliminary injunction hearing set for August 28. Judge indicates that 23XI and Front Row will be guaranteed spots in races up until a decision on preliminary injunction and that NASCAR won’t sell charters until a decision as well. pic.twitter.com/nzgnu9lx8j

— Bob Pockrass (@bobpockrass) July 22, 2025

The preliminary injunction hearing is set for August 28, with the judge making it clear that 23XI and Front Row will be guaranteed spots in races until a decision is made, and NASCAR won’t touch the charter sales until then. After the appeal earlier this month sent the case back into play, Denny Hamlin shared his reaction at Dover Motor Speedway, saying, “If you want answers, you want to understand why all this is happening. Come Dec. 1, you’ll get the answers that you’re looking for. All will be exposed.”

He added, “Dec. 1 is all that matters. Mark your calendar. I’d love to be doing other things. I’ve got a lot going on. When I get in the car today, nothing else is going to matter other than that. I always give my team 100%. I always prepare whether I have side jobs, side hustles, more kids; that all matters, but I always give my team all the time that they need to make sure that when I step in, I’m 100% committed.” This latest development feels like a lifeline, keeping Jordan’s vision alive while the legal fight plays out, with all eyes now on that December showdown.

Hamlin’s dig at Logano

Denny Hamlin has always been one of the most outspoken drivers on the Cup Series grid, especially since diving into the broadcasting world with his weekly Actions Detrimental podcast. Never shy about airing his views, no matter how controversial, Hamlin might just have taken a subtle jab at reigning champion Joey Logano recently. The 23XI Racing co-owner spoke at length about the importance of winning the regular season championship for a driver in NASCAR’s top tier, a feat one of his drivers from 23XI, Tyler Reddick, achieved last year.

In light of how the postseason Playoffs system in stock car racing works nowadays, Hamlin described the regular season championship as one of the most legitimate ways to judge a driver’s consistency throughout a year. Touching on how the regular season standings, unlike the playoffs, aren’t affected by surprise winners or upsets during the season, he elaborated, “There’s been no flukes, been no accidental winners. It’s the biggest sample size we have in the sport, so that’s why I think it’s the most legitimate.” While one could take his words at face value, it’s hard to ignore the possibility he might be nodding toward Joey Logano and how the Team Penske driver clinched his third championship last year.

Several things had to fall in place for Logano to grab the ultimate prize, ranging from Alex Bowman’s disqualification at the Roval, which allowed the No. 22 Ford driver to advance to the next round of the playoffs, to winning his way into the postseason in the first place after being pretty much non-existent results-wise during the start of the year. It’s tough to say for sure if Hamlin was aiming at Logano, but the timing sure raises eyebrows, especially with Logano’s upset championship win drawing fresh criticism about the Playoffs system and its struggle to reward drivers for consistency.

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