Michael Jordan and Denny Hamlin’s racing team, 23XI Racing, along with Front Row Motorsports, has lost its legal battle to secure a guaranteed spot in NASCAR’s 2025 season through a charter agreement. The US Court of Appeals for the Fourth Circuit reversed a lower court’s injunction that would have temporarily allowed Jordan’s team and Front Row Motorsports to compete with charter status. The court ruled that the district judge’s earlier decision was flawed and not supported by any legal precedent.
Notably, the original injunction argued that NASCAR violated antitrust laws by requiring teams to sign a legal release covering past conduct in order to join the charter system. However, the appeals court disagreed, stating that this condition is standard practice and not unlawful. According to NASCAR insider Bob Pockrass, “Teams said they needed an injunction b/c the charter agreement says they can’t sue NASCAR. The original judge’s decision ruled that the release of claims likely violated antitrust law. Appeals court said that the theory of antitrust law is not supported by any case it knows, so vacated injunction.”
Judge Paul V. Niemeyer of the US Court of Appeals, writing for the panel, rejected the injunction. “Because that theory of antitrust law is not supported by any case of which we are aware, we conclude that it was not a likely basis for success on the merits and vacate the injunction,” he wrote. Judges Steven Agee and Stephanie Thacker agreed with his opinion. The ruling emphasized that the injunction had forced NASCAR into a contract without its consent and granted Jordan’s team an unfair benefit not extended to other teams.
Denny Hamlin and Co. are in trouble!
In NASCAR, charter teams receive guaranteed entry into races and earn financial incentives based on performance. In contrast, open teams must qualify for each race and lack financial security. After the latest court setback, both 23XI Racing and Front Row Motorsports now operate as open teams with no financial protection. This legal battle forms part of a broader antitrust lawsuit filed by Jordan’s team and Front Row, who argue that NASCAR holds monopoly power over professional stock car racing and abuses it.
Teams said they needed injunction b/c charter agreement says they can’t sue NASCAR. Original judge’s decision ruled that release of claims likely violated antitrust law. Appeals court said that theory of antitrust law is not supported by any case it knows so vacated injunction. https://t.co/8HSrZzbIj9
— Bob Pockrass (@bobpockrass) June 5, 2025
This is a developing story.
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