CHARLOTTE, N.C. — Two racing teams taking legal action against NASCAR regarding antitrust issues announced on Saturday that they have reached a preliminary agreement with the organization. This deal will permit them to participate in events during the 2025 season as the legal proceedings progress.

23XI Racing, co-owned by NBA legend Michael Jordan and Denny Hamlin, who is a three-time Daytona 500 champion, along with Front Row Motorsports, rejected NASCAR’s final revenue-sharing proposal just two days prior to the start of the playoffs in September.

These teams have initiated an antitrust lawsuit that claims NASCAR operates as “monopolistic bullies.” Last week, a federal court denied their request to be recognized as “chartered” teams while the case is ongoing. Being “chartered” means receiving guaranteed prize winnings, a guaranteed race spot each week, and various additional protections, similar to a franchise model.

The two teams have stated they would compete as “open” teams, necessitating their participation in weekly qualifying sessions for every race. However, “open” teams do not enjoy the same financial benefits afforded to chartered teams, including a fair share of the prize purses.

Following the rejection of their injunction, which the teams are currently appealing, Hamlin indicated that it was uncertain if 23XI would participate in the season-opening Daytona 500 scheduled for February.

In a morning update from attorney Jeffrey Kessler, it was confirmed that NASCAR has eliminated the previously contested anticompetitive release stipulation in its agreement, allowing both 23XI and Front Row to compete as open teams. Each team currently operates two chartered cars and has agreements in place with Stewart-Haas Racing to acquire an additional charter each.

As these agreements have not yet finalized, the current charters held by 23XI and Front Row are set to expire at the end of the year. Kessler has requested an expedited hearing in December concerning the appeal as the new racing season is set to commence in February.

Kessler reiterated that the teams would be entering as “open” teams while they continue to pursue their appeal. “My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams and avoid irreparable harm,” he stated. “Both race teams are pleased to remain engaged in a sport they cherish while working towards fairness and justice for everyone involved.”