Michael Jordan Team to Compete in NASCAR Series After Court Win

Two racing teams, including one owned by NBA Hall of Famer Michael Jordan, can compete in the 2025 NASCAR Cup racing series as chartered teams after a federal judge granted their request for a preliminary injunction against the organization.

Judge Kenneth Bell of the US District Court for the Western District of North Carolina in a Wednesday order said Jordan’s team, 23XI, and Front Row Motorsports Inc., met their burden of proof for a limited preliminary injunction that allows them to compete as chartered teams, which are guaranteed racing spots and earn money for performance. Open teams are disadvantaged as they are not promised spots.

The order is the latest development in a case brought by 23XI and Front Row Motorsports against NASCAR in October that accuses the organization of monopolizing the stock car racing market. The teams will continue pursuing their underlying antitrust claims.

Jeffrey Kessler, attorney for 23XI and Front Row Motorsports, said in a statement Wednesday that he welcomed Judge Bell’s order granting a preliminary injunction.

“The court’s ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in next year’s Cup Series,” said Kessler, co-executive chairman and partner with Winston & Strawn LLP. “We are confident in the strength of our case and will continue to fight so that racing can thrive and become a more competitive and fair sport in ways that benefit teams, drivers, sponsors and, most importantly, our fans.”

The teams requested a preliminary injunction in late November, saying they would face irreparable harm without one, including the loss of their antitrust rights, sponsors, drivers, industry goodwill, and competitive opportunities.

They argued they were likely to succeed on the merits of their claims because NASCAR unlawfully exercised power in the market for premier stock car racing teams in the US, in violation of Section 2 of the Sherman Act.

Bell sided with the plaintiffs, saying they have shown the likelihood of irreparable harm and that the injunction favors the public interest.

The court also held that NASCAR possesses monopoly power in the relevant market for premier stock car racing teams in the US.

“NASCAR’s Cup Series is the only premier stock car racing series in the United States, and premier stock car racing is a distinct form of automobile racing with unique cars and highly specialized racing teams for which other types of motorsports like Formula 1 and IndyCar are not substitutes,” Bell said. “Therefore, NASCAR fully controls which race teams can compete at the highest level of stock car racing – effectively, it has a 100% market share.”

In November, Bell denied the plaintiffs’ initial motion for a preliminary injunction without prejudice, finding they hadn’t shown the irreparable harm, but invited them to file a renewed motion “should circumstances change.”

The plaintiff teams dropped their appeal of that ruling and sought a new injunction, asking to participate in the NASCAR Cup Series as chartered teams in 2025.

Circumstances changed with regard to the teams’ drivers, including one on Jordan’s team who said 23XI was in breach of his contract that says he must be able to drive in all Cup Series events. The driver could leave the team if the contract wasn’t cured within 30 days.

A lack of chartered cars also affected the plaintiffs’ relationships with such sponsors as Monster Energy and Love’s Travel Stops.

“These are changed circumstances that the court finds have moved Plaintiffs’ likely harm from remote and speculative to present and immediate,” Bell said.

NASCAR is represented by Latham & Watkins LLP.

The case is 2311 Racing LLC v. NASCAR, W.D.N.C., No. 3:24-cv-00886, 12/18/24.