Major NASCAR lawsuit twist as Michael Jordan’s 23XI and Front Row risk losing charters after court vacates injunction

In a lawsuit involving Michael Jordan's team, 23XI Racing, and Front Row Motorsports, on June 5, 2025, a three-judge panel from the U.S. Court of Appeals Fourth Circuit ruled in favour of NASCAR. The ruling has overturned a previous injunction that had allowed 23XI Racing and Front Row Motorsports to compete as chartered teams during the 2025 season while their antitrust lawsuit against NASCAR proceeds.

The teams have 14 days to ask for a rehearing, and the ruling goes into effect seven days after the deadline. The court found that there was no legal precedent supporting the lower court’s conclusion that the “release” clause violated antitrust law.

The injunction originally granted in December of 2024 was vacated, which means that NASCAR can revoke the charters held by 23XI and Front Row Motorsports. Without the charters, the teams will have to compete as “open” teams, risking their financial stability and ability to qualify for races. Without further appeal, NASCAR could revoke up to three charters each from 23XI and Front Row.

"Because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory," the appeals court opinion said.

"And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction," they added.

Bob Pockrass reported the news for Fox Sports:

The June 2025 appeals court ruling is a major blow to Michael Jordan and Denny Hamlin's 23XI Racing and Front Row Motorsports in their fight against NASCAR's charter system.

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Insider drops major update on Michael Jordan’s court case against NASCAR

The latest update in the lawsuit between NASCAR and 23XI Racing/Front Row Motorsports reveals that the next court hearing has been rescheduled from June 12 to June 17, following the Mexico City race. This hearing will address the plaintiffs' motion to dismiss NASCAR's counterclaim, which accuses Curtis Polk (23XI co-owner and Michael Jordan's business partner) of collusive behavior to secure better commercial terms, including allegedly threatening to boycott races.

Bob Pockrass reported on X:

“The next hearing in the 23XI/Front Row-v-NASCAR case has been moved from June 12 to June 17.”

The court will also consider whether other teams should be involved, given the broader implications for NASCAR's charter system, especially since only 13 of 15 charter holders agreed to the most recent extension, with Michael Jordan co-owned 23XI Racing and Front Row Motorsports citing monopolistic practices and a ban on legal action against NASCAR as reasons for their refusal.