NASCAR lawsuit update: Michael Jordan’s 23XI and FRM make a bold shift as teams opt for ‘open team’ status - Reports

For the first time since their inception, 23XI Racing and Front Row Motorsports will run not one, but two back-to-back races as unchartered NASCAR teams. The news was reported by journalist Bob Pockrass just a few hours ago.

NASCAR’s latest filing states that both organizations completed the required paperwork to race as open teams at Dover Motor Speedway on July 20, and at Indianapolis Motor Speedway a week later. This was after the teams applied for a preliminary injunction and filed a temporary restraining order against NASCAR last Monday.

The Fourth Circuit Court of Appeals revoked that status on Wednesday, July 16. Although expected to be enforced before this coming Sunday’s race, no timeline has been set for the court’s decision.

Taking to X (formerly known as Twitter), Pockrass wrote,

“According to NASCAR filing today: Both 23XI and FRM have completed the paperwork to race as open teams at Dover and Indianapolis.”

Being a chartered team has several perks, one of which is having a guaranteed starting spot in every single point-paying race on NASCAR’s schedule. It also provides a team with more revenue than those without a charter.

The good news is that fewer than 40 entrants are going to compete in both races. So, the three 23XI cars owned by Michael Jordan and Denny Hamlin, and the three FRM cars owned by team owner Bob Jenkins, will not miss them. However, losing charter status will indeed cause irreparable harm to the teams.

The teams stated the following in Monday’s filing:

“It is not economically viable for a team to participate in the Cup Series on a long-term basis racing under an “open” agreement. Moreover, if Plaintiffs are forced to relinquish their charters before trial, they once again will face the prospect of losing key sponsors and star drivers, who will have the right to terminate their contracts and have already signaled their intention to pursue driving opportunities with other teams (should Plaintiffs lose their charter rights).”

However, NASCAR stated that the charters never belonged to the teams in the first place, as they denied signing the sport’s newest charter agreement before the 2025 season kicked off in February.

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NASCAR demands a settlement proposal from 23XI Racing and Front Row Motorsports

Although it doesn’t seem like a mutual feeling, NASCAR is ready to settle things with 23XI Racing and Front Row Motorsports. All the teams have to do is present a settlement proposal and rescind the lawsuit, which, according to NASCAR, is “damaging” and “distracting”.

NASCAR claimed that they had made multiple requests to 23XI and FRM to present a proposal. But none have been received yet. NASCAR stated,

“We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.”

“We remain focused on collaborating with the 13 race teams that signed the 2025 charter agreements and share our mutual goal of delivering the best racing in the world each week, including this weekend in Dover,” NASCAR further added.

All eyes are now on Dover Motor Speedway, which is going to host the AutoTrader EchoPark Automotive 400 Cup Series race. Scheduled for July 20, the 400-lap event will be televised on TNT Sports (2 pm ET onwards), with live radio updates on PRN and SiriusXM NASCAR Radio.