Jordan Can’t Bar Charter Sales Because NASCAR Agreed Not to Sell Charters

Michael Jordan’s racing team got another legal setback.

23XI was pushing for a court to bar NASCAR from selling charters, but a judge said no because NASCAR has already agreed not to sell charters.

Jordan’s 23XI Racing and Front Row Motorsports sued NASCAR in October over allegations the organization is a monopoly that hoards revenue and pushes teams around in negotiations. The lawsuit did not seek a specific amount in damages; instead, it wants NASCAR to be found to have “willfully” engaged in anticompetitive conduct to the detriment of its teams, and a ruling that it stop that behavior.

It was filed after both teams refused to sign a new charter agreement in September that was offered by NASCAR. Charters ensure that teams can compete in Cup Series races and guarantee access to NASCAR’s revenues.

The Wednesday ruling from U.S. District Judge Kenneth Bell denied a request from 23XI Racing and Front Row for a preliminary injunction prohibiting NASCAR from selling any more charters this season. The decision came after NASCAR last week voluntarily committed not to “issue, sell, convey, or lease any additional Charters” while the litigation remains pending. The plaintiffs were not satisfied, telling the judge on Tuesday that the injunction was “necessary.”

The judge disagreed, saying that “plaintiffs cannot show the likelihood of imminent irreparable harm sufficient to support a Preliminary Injunction.” The judge cited NASCAR’s “renewed commitments to the Court.”

NASCAR welcomed the court’s decision in an emailed statement, saying it “brings much-needed clarity to the remainder of the 2025 NASCAR season.”

Jeffrey Kessler of law firm Winston & Strawn, who is representing 23XI Racing and Front Row, said in an emailed statement his clients are “grateful that Judge Bell has made clear that the status quo is being maintained—protecting my clients’ rights to regain their charters if they prevail at trial and ensuring their ability to continue racing through the 2025 season based on NASCAR’s commitments.”

A trial in the contentious case—which is playing out amid the NASCAR playoffs—is scheduled to begin this December. The judge has previously urged both sides to settle, saying in June, “It scares me to death to think about what all this is costing.”

The case is currently in the discovery phase, which has given a rare glimpse into private communications on both sides, including blunt text messages sent by Jordan and former Daytona winner Denny Hamlin, co-owner of 23XI Racing. Last fall, 13 racing teams signed charters with NASCAR, some of which contended they had no leverage regarding the terms.

“Teams are going to regret not joining us,” Jordan wrote in a text message to Curtis Polk, his business manager who is also a co-owner of 23XI Racing. Jordan also called Joe Gibbs and other racing owners “fuckers” and “pussies” for agreeing to charter terms. 

Private messages from NASCAR executives were also revealed during last week’s hearing, including an email written by commissioner Steve Phelps that said talks weren’t progressing after an early charter proposal to teams. Another message to coworkers said that racing teams could “pick a date and can either sign or lose their charters. It is that simple.”