CHARLOTTE, N.C. — A federal court has rejected NASCAR’s requests to dismiss an antitrust case brought against the organization.

U.S. District Judge Kenneth Bell, presiding in the Western District of North Carolina, also dismissed NASCAR’s appeal for two specific racing teams, 23XI Racing and Front Row Motorsports, to be required to pay a bond covering potential fees despite not being legally responsible if they lose the lawsuit.

Co-owned by NBA legend Michael Jordan, 23XI Racing, alongside Front Row Motorsports, owned by businessman Bob Jenkins, is challenging NASCAR’s authority in order to secure charter recognition through the 2025 racing season.

Since the establishment of a franchise system in 2016, NASCAR has managed the top-tier Cup Series with 36 cars holding “charters,” ensuring their inclusion in every race while providing additional financial benefits. In contrast, four “open” positions are available for each weekly race.

Over nearly two years, both teams were part of negotiations striving for an enhanced charter framework, facing challenges from NASCAR throughout the process. In September, NASCAR presented teams with a final offer that required immediate acceptance, which was a mere 48 hours before the commencement of the playoffs, leading to heightened tensions.

Among the 15 teams involved, only 23XI Racing and Front Row Motorsports opted not to sign the revised charter agreement. Subsequently, they filed a lawsuit against NASCAR and its chairman, Jim France, claiming that NASCAR possesses a monopoly within U.S. stock car racing, depriving teams of their equitable share of resources.

The two teams asserted they could still race as open cars but successfully argued to the court that they deserved chartered status to avoid irreparable damage. A significant aspect of their argument hinged on the potential loss of 23XI driver Tyler Reddick, who could become a free agent if the team fails to secure a guaranteed chartered position.

In response, NASCAR argued that the funds in question were vital and would be proportionally dispensed to the chartered teams if the lawsuit concluded unfavorably for 23XI Racing and Front Row Motorsports.

However, Jeffery Kessler, a prominent antitrust attorney, countered that NASCAR had failed to provide assurances regarding fund distribution to other teams, pointing out that NASCAR retained the discretion to allocate the money at their own choosing, potentially even directing some funds towards their own legal expenses.