When Denny Hamlin and NBA legend Michael Jordan announced the formation of 23XI Racing in September 2020—after purchasing Germain Racing’s charter—their vision was clear. Build a powerhouse team by blending Hamlin’s series experience with Jordan’s competitive drive and star power. Back then, Hamlin said, “Michael and I have a shared vision for this team. So it’s exciting to see it reflected in the team name and on the race car with the iconic number 23 that Michael made famous.” Since their debut at the 2021 Daytona 500, Bubba Wallace has steered the No. 23 Toyota to multiple wins. And that it did with Tyler Reddick and Riley Herbst soon joining the roster.
Fast forward to 2025, and the trio of 23XI Racing Cup entries has yet to claim a checkered flag this season. Instead, off-track drama has taken center stage. In December 2024, 23XI Racing joined Front Row Motorsports in filing an antitrust suit against NASCAR over the new charter agreement. They accused the sanctioning body of monopolistic practices. The legal battle escalated in June when a federal appeals court lifted a preliminary injunction. They stripped the team of its guaranteed charter entries and forced it to qualify on speed for each race. The fate of 23XI Racing now lies squarely in its own hands.
That ruling brings increased pressure to perform—no safety net, higher financial risk. And a season where even one off-weekend could result in missing a race. Fans expected turbulence, but not this level of fragility from a team with such big names, high expectations, and enormous stakes. 23XI Racing is navigating uncharted territory—a turning point that could reshape its future.
Why 23XI Racing cannot find consistency in 2025
Since Texas, 23XI Racing has posted average finishes of 19.4 for Bubba Wallace and 22.7 for Tyler Reddick over a seven-race span. Expanding the sample to eight races since that weekend reveals similar trends: Reddick now averages 17.7 and Wallace 22.6. In the standings, Reddick has slipped from 5th to 6th, while Wallace has dropped from 8th to 13th.
As for Riley Herbst in his rookie Cup season, he’s driving the No. 35 under conditions of high uncertainty. He has completed 17 races with an average finish of 25.8, no top-10 results, and two DNFs—though he has led at least one lap. If 23XI loses its charter protections, Herbst could be the first to feel the impact, scrambling just to qualify each week.
In contrast, Toyota’s Legacy Motor Club has surged. Erik Jones now averages a 14.0 finish and has jumped from 29th to 18th in the standings. John Hunter Nemechek has improved from 24th to 21st with a 16.8 average. This statistical gap isn’t due to chance—it clearly reflects underperformance from 23XI Racing compared to their Toyota counterparts. Legacy’s numbers are trending upward, with John Hunter’s steady top-10s and Jones’ breakout runs solidifying the team as Toyota’s second-best over the past two months.
So, what’s going wrong at 23XI Racing? One theory is distraction. The team’s ongoing antitrust and charter litigation—sparked last year and reignited with a June appellate court loss—has reportedly strained resources and morale. Without guaranteed charters, the team must fight just to qualify each week, adding pressure on crew chiefs, engineers, and drivers.
Is off-track turmoil bleeding into on-track performance? Is it luck, driver form, or mechanical issues? Tyler Reddick has shown glimpses of potential—a pole at COTA and several top-15 finishes—but consistency remains elusive. Bubba Wallace, despite moments of brilliance on road courses, has crashed out twice and missed the top 20 more often than not.
Moreover, NASCAR filed subpoenas demanding up to 11 years of financial records from teams, seeking insight into revenue, sponsor deals, and salaries. Twelve of the fifteen teams involved—including FRM, 23XI Racing, and Kaulig—argue that turning over this data, even with NASCAR’s promised redactions, could expose proprietary information and damage competitive balance.
At the June 18 hearing, Judge Kenneth Bell expressed frustration with the escalating legal feud and urged both sides—NASCAR and the suing teams—to pursue an out-of-court settlement. He warned of “heavy costs and potential instability to the sport.”
However, Denny Hamlin downplayed the significance of the recent ruling on pallet panels, calling it “a narrow setback” that doesn’t alter the broader antitrust case, which is still scheduled for trial in December. He reaffirmed that “the team will continue to compete, even as open entries, if necessary.”
Bubba Wallace battles speed misfortune and pressure
Bubba Wallace has shown strong moments of promise this season, but consistency has eluded him. Through 18 races, he secured six top tens and three top fives and led 103 laps. On top of that, he posted an average finish of 19.4 and an average start of 15.7, currently sitting 13th in the standings with 428 points.
Earlier in the season, Wallace qualified third fastest in Duel 1 at Daytona. He claimed a strong third-place finish in the Homestead race. A pole run at Darlington also spotlighted his raw speed. Notably, he surged to a sixth-place finish at Nashville and impressed at Michigan 4th. But six DNFs have marred those highlights, finishing with fewer laps run than he’d like.
Pocono Raceway was especially brutal. A late race brake rotor explosion sent the car hard into the wall during stage 2, triggering his 6DNF. He finished 36th, and teammate Riley Herbst hit the fence similarly due to rotor failure. Wallace admitted his frustration: “By the time I was ready to touch the pedal, it just went to the floor.” Moreover, DNF now has him dangerously close to the playoff cut line. That’s only 29 points above the danger zone.
However, the low point came at Pocono, where Tyler Reddick, Wallace, and Riley faced the same mechanical issue. Owner Denny Hamlin did not hold back on his words, knowing the potential of his team. He said, “That was the most frustrated I’ve been in a long time. That was like a gut punch. It was really hard to swallow it.” The talent is there. The backing is historic. Right now, it’s not dominance, it’s survival. And if they can’t study the ship soon, one of NASCAR’s most ambitious experiments might find itself in a deeper rebuild than anyone expected.
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