In a recent episode of The Teardown, NASCAR journalists Jeff Gluck and Jordan Bianchi revealed their firsthand experiences of watching the legal battle between 23XI Racing and NASCAR at the U.S. Federal Court. For them, it was nothing less than watching a movie.
23XI Racing and Front Row Motorsports embarked on this legal battle when NASCAR laid down the terms of its new charter agreement and asked the teams to sign it before the 2024 playoffs began. The two teams didn’t comply because they felt they had not been given a chance to make a fair bargain.
The teams demanded a preliminary injunction that would allow them to keep racing in 2025 whilst continuing their pursuit of the antitrust lawsuit. The hearing was held on Monday, November 4, a day after the controversial playoff race at Martinsville Speedway.
“All of this happens at Martinsville, sets up the Championship 4...where are we on a Monday afternoon? We are in U.S. federal court because who? Not just any team owner. Michael freaking Jordan is taking NASCAR to the U.S. Federal Court,” Bianchi exclaimed. “It was the moment, you know, three black big SUVs pull up and out comes Michael Jordan, Denny Hamlin, Curtis Polk. They're walking in and it looks like a movie poster, right?”
Gluck agreed. Adding to Bianchi’s narrative, he said,
“Just watching the arguments go back and forth; it was like a movie. It was like you were in a court movie. Felt like the lawyers were getting a little bit personal. The 23XI (and) Front Row lawyer Jeffrey Kessler turns to the NASCAR Lawyer at one point and says...I'm gonna explain this in terms that even you can understand. It was like woah!"
So what is the status of the lawsuit against NASCAR following the latest court hearing? Let’s take a look.
23XI Racing and Front Row Motorsports lose the perks of the charter
Being a chartered team has its benefits, the biggest of which is perhaps a guaranteed spot in every point-paying race of the season. However, when 23XI Racing, owned by Denny Hamlin and Michael Jordan, chose not to sign the agreement, it meant only one thing; they would have to qualify for every single race from then on, starting from the 2025 Daytona 500.
NASCAR agreed to let both 23XI Racing and Front Row Motorsports compete as non-chartered, “open” teams for the upcoming season. The antitrust lawsuit will still go on at the U.S. Federal Court.
Although this saves the teams from getting ousted from contention, it doesn’t obliterate the possibility of them losing sponsors and even drivers.
“The district court denied (the injunction) motion, and now (the teams) face immediate irreparable harm if they do not receive this court's expedited review of the district court's decision," a court filing read (via Newsweek). “That irreparable harm has already begun because (23XI/FRM) cannot assure sponsors, drivers, and fans that they will be able to compete as chartered teams in 2025 – a condition that puts those critical relationships with sponsors, drivers, and fans at immediate risk."
As of now, there seems to be no end in sight to this situation. Needless to say, this ongoing lawsuit is one of the top stories in NASCAR ahead of the 2025 season.