CHARLOTTE, N.C. — A U.S. District Court has issued a preliminary injunction allowing 23XI Racing and Front Row Motorsports to compete as chartered teams in the NASCAR series for the 2025 season. The ruling, made by Judge Kenneth D. Bell, emphasized the importance of NASCAR fans and the wider public in having full access to all teams and their best drivers competing together. This decision is seen as a significant step forward for both teams, who are currently involved in a legal battle against NASCAR.
The disagreement between these teams and NASCAR stems from an antitrust lawsuit where the two teams accused NASCAR of monopolistic practices. The suit was filed after 23XI, owned by NBA icon Michael Jordan and three-time Daytona 500 champion Denny Hamlin, along with Front Row, declined revenue-sharing offers from NASCAR shortly before the start of playoff races last September. A charter in NASCAR acts like a franchise, ensuring teams receive prize money, a guaranteed spot in races, and additional benefits.
In the ongoing legal proceedings, both teams were previously unsuccessful in their attempt to be recognized as chartered teams, leading to their current injunction that allows them to continue negotiations for charters while pursuing their lawsuit. The ruling comes at a critical time; both teams can now finalize agreements and seek additional charters from Stewart Haas Racing, which is no longer using all four of its charters following the 2024 season.
Denny Hamlin expressed his excitement over the ruling on social media. The outcome is vital for 23XI, particularly for driver Tyler Reddick, who faced the possibility of becoming a free agent if the team’s charter status was not secured. Additionally, Bubba Wallace expressed urgency regarding the team’s plans for the next season, indicating potential interest in exploring opportunities with other teams.
Jordan has stated that the lawsuit serves as a fight for all competitors within the highest tier of American motorsports. NASCAR maintains that the two teams are simply dissatisfied with the terms of the charter agreement and has sought dismissal of the lawsuit. Both teams are looking to expand from two to three full-time cars in their operations and have already reached preliminary agreements to purchase additional charters.
Prior to the injunction, both teams faced the risk of competing as “open” teams without the support and financial advantages that come with holding a charter, which would have significant implications for their ongoing contract obligations with sponsors and drivers. The judge noted the public interest in having a full array of teams participating in the racing season, which enhances fan engagement and allows the plaintiffs’ legal challenges to be properly addressed.
The ownership of Front Row rests with businessman Bob Jenkins, while 23XI involves a collaboration among Jordan, Hamlin, and adviser Curtis Polk. In prior statements, Jenkins highlighted the significant revenue losses both teams would incur if they operated without charters but remained committed to challenging NASCAR’s practices. Since the implementation of the charter agreement in 2016, NASCAR’s operations have consisted of 36 chartered teams alongside four open spots.
The judge also noted that the diversity of sports in America does not diminish the monopolistic implications of NASCAR’s control, comparing it to others, such as college sports, that have faced scrutiny for similar dominance.