Michael Jordan’s NASCAR team, 23XI Racing, and Front Row Motorsports suffered a legal setback Thursday when the U.S. Court of Appeals for the Fourth Circuit vacated a preliminary injunction that had temporarily allowed both teams to compete with the benefits of NASCAR charters without fully complying with the latest agreement.
The decision means the two teams, which had challenged NASCAR’s 2025 charter agreement, no longer have legal protection to race as if they hold official charters. The ruling aligns with skepticism expressed by the three-judge panel during oral arguments in May and further casts doubt on the legal claims brought by 23XI Racing, co-owned by Michael Jordan and Denny Hamlin.
Judges Challenge Legal Basis of Antitrust Claims
In a sharp opinion authored by Judge Paul V. Niemeyer, the court criticized both the original ruling by U.S. District Judge Kenneth D. Bell and the legal theory put forth by the teams. Niemeyer, writing on behalf of a unanimous panel, said the antitrust claim “is not supported by any case of which we are aware.” He argued the injunction wrongly gave the teams benefits not provided to others, calling it “an unauthorized windfall.”
Judge Stephanie Thacker, during earlier arguments, noted this was “the first time in all the history of contract law” she had seen a judge create a contract through an injunction. The ruling echoed that concern, stating that NASCAR should not be forced to provide benefits to teams unwilling to sign the same charter agreement other teams accepted.
Injunction Gone, But the Lawsuit Isn’t Over
Despite the court’s firm rejection of the injunction, the broader antitrust case remains alive. A trial is set to begin December 1. The teams argue that NASCAR is behaving like a monopoly by forcing them to waive legal claims in exchange for a charter—a system that provides guaranteed starting spots and valuable business advantages.
Judge Niemeyer questioned that argument, pointing out that NASCAR, like any business, can choose its partners and terms. He wrote that “neither the plaintiffs nor [Judge Bell] has shown how the release would have injured competition.”
Options Still on the Table for 23XI and Front Row
Without the injunction, 23XI Racing and Front Row Motorsports can still compete as open teams, meaning they must qualify for races without the benefits and security of a charter. That’s how they participated in some races late last year, after filing suit.
The ruling is a win for NASCAR and its legal team, led by Christopher S. Yates of Latham & Watkins. NASCAR’s attorneys argued the case relied on flawed antitrust logic and threatened the league’s control over its own business model.
In a statement, attorney Jeffrey Kessler, representing the teams, said they were “disappointed” by the decision but emphasized that it focused only on a narrow issue—the release clause in the charter deal—not the full case.
News in Brief: Michael Jordan NASCAR Team Loss
Although the appeals court ruling tilts momentum toward NASCAR, the legal battle is far from over. The next step could be a petition by the teams for a full appellate review by all Fourth Circuit judges, though such requests are rarely granted.
Ultimately, this case revolves around money and control. The charter system has grown into a cornerstone of NASCAR’s business structure, with teams viewing it as key to financial stability. If the dispute isn’t resolved in court, both sides could reach a settlement—something many legal observers say remains likely.
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