NASCAR vs Michael Jordan's 23XI court case: All the latest developments explored

AUTO: NOV 09 NASCAR Cup Series NASCAR Cup Series Championship - Source: Getty
Michael Jordan at Phoenix Raceway last year - Source: Getty

NASCAR recently filed its response to 23XI Racing and Front Row Motorsports’ bid to regain chartered status for the remainder of the 2025 season. The sanctioning body argued that since both teams declined to sign the charter extension agreement in September 2024, they should return the payouts they received earlier this year and allow the charters to be redistributed to existing organizations or new entrants looking to join the Cup Series.

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Both 23XI and FRM currently have three charters apiece (two came from the now-defunct Stewart-Haas Racing). The former—co-owned by six-time NBA champion Michael Jordan—fields Bubba Wallace (#23), Tyler Reddick (#45) and Riley Herbst (#35), while the latter competes with Todd Gilliland (#34), Noah Gragson (#4) and Zane Smith (#38).

NASCAR has asked the plaintiffs to make their charters available for sale by October 1, giving other existing organizations and prospective new owners time to bid and prepare for the 2026 season. The update was reported by veteran NASCAR journalist Bob Pockrass on X.

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“Lawsuit update as NASCAR filing indicates it wants to sell the charters 23XI and Front Row had and wants to do so by Oct 1 so any potential new owners can be ready to race in 2026 (obviously if they did that and lost lawsuit, monetary damages could be big),” Pockrass wrote.
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The court has granted 23XI and FRM an injunction on the basis of “irreparable harm” if they competed as open teams. However, NASCAR countered that the risk is now minimized thanks to a July rule change that ensures non-chartered teams can qualify through owner points rather than relying solely on qualifying.

The sanctioning body also stressed that both teams earned “reasonable profits” during their time as charter holders and have received a higher percentage of revenues than Formula 1 teams. For now, the next hearing is set for August 28, with a full trial scheduled for December.

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“We're prepared to go all the way”: Denny Hamlin on lawsuit fight against NASCAR

In addition to Michael Jordan, #11 Joe Gibbs Racing driver Denny Hamlin co-owns 23XI Racing. Hamlin vowed their camp is “prepared to go all the way,” insisting that NASCAR’s current system violates antitrust laws.

In a pre-race interview at Pocono Raceway in June 2025, the 44-year-old Toyota driver said:

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“I have stated publicly that I've always hoped cooler heads would prevail... I can tell you this is, it’s not on our end that needs, you know, the cooler heads. It's certainly, we've said that. I think the difference is they're saying different things on their side. So, we're prepared to go all the way.”

While Hamlin continues to fight the lawsuit as a 23XI co-owner, he has been having a strong season driving the #11 JGR Toyota. He has amassed four wins, 11 top-5s and 13 top-10s, though he fell short of the regular-season championship to William Byron.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

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Edited by Luke Koshi
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