The long heated and discussed legal battle between NASCAR and NBA hall of famer Michael Jordan's team 23XI seems to have reached a much needed agreement, While it is still not the closure it is the middle way around. Two NASCAR teams involved in an ongoing antitrust lawsuit against the sanctioning body announced on Saturday that they have reached a temporary agreement, allowing them to compete in the 2025 season while their legal battle progresses.
The lawsuit
The teams, 23XI Racing — co-owned by NBA legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin — and Front Row Motorsports, had previously rejected NASCAR’s revenue-sharing offers made in September, just days before the start of the NASCAR playoffs. In response, they filed an antitrust lawsuit, accusing NASCAR of engaging in monopolistic practices. A federal court ruling last week denied their request to be recognized as “chartered” teams, although the case is still ongoing.
In NASCAR, a "charter" functions as a franchise, guaranteeing a team a spot in every race, as well as a share of the prize money and other financial protections. Teams without a charter must qualify for each race individually, and they do not receive the same financial guarantees or race-week security as chartered teams.
Open teams
Despite the court ruling, both 23XI and Front Row Motorsports stood firm on competing as "open" teams, meaning they would need to qualify for every race on their own, without the same advantages as chartered teams. After losing their injunction request, Hamlin said it was still uncertain whether 23XI would participate in the season-opening Daytona 500 in February.
However, a recent update from the teams’ attorney, Jeffrey Kessler, indicated that NASCAR had agreed to lift the "anticompetitive release requirement" from its open agreement, allowing both teams to proceed as open teams in 2025. Currently, both 23XI and Front Row Motorsports each field two chartered cars and are in the process of finalizing agreements to purchase a third charter from Stewart-Haas Racing. The existing charters will expire at the end of the year.
Kessler is now requesting an expedited hearing in December to address the appeal before the new season begins.
"We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025," the statement said.
"My clients will continue their appeal to the 4th Circuit to issue an injunction so that they can run as chartered teams therefore avoiding irreparable harm. Both teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all."
