Charlotte, N.C. saw the beginning of NASCAR championship week with a legal match between 23XI Racing co-owners, Michael Jordan and Denny Hamlin, and NASCAR. Along with Front Row Motorsports, 23XI Racing is suing NASCAR and CEO Jim France for antitrust violations. Their first courtroom confrontation occurred during a Monday hearing over a preliminary injunction request. Centred around a clause in NASCAR’s 2025 charter agreement preventing teams from taking legal action, 23XI and FRM requested this clause be waived so they can continue racing.
The lawyers representing the teams, Jeffrey Kessler, exchanged heated discourse with Chris Yates, NASCAR’s lawyer. If the clause isn’t waived, the teams can’t sign the agreements. “We cannot practice our profession without signing this release,” Kessler argued. Regardless of the dispute, the teams hope Judge Frank Whitney will not only dismiss the clause but restore the original charter offer that NASCAR presented on September 6.
Yates, however, argued that NASCAR no longer wishes to enter into a charter agreement with the teams due to their negative public comments about NASCAR. According to Yates, the teams’ professionalism was compromised due to their derogatory remarks about NASCAR’s brand and goodwill. “NASCAR only wants to enter charter agreements with teams who want to work collectively to grow the sport, not disparage it,” said Yates.
Yates further argued on behalf of NASCAR that the teams could choose to take their business elsewhere, like another racing sport. This suggestion was promptly rebuffed by Kessler with an analogy that this would be akin to asking a football player to switch to playing baseball.
Under the 2025 charter agreement, Yates explained that racing teams will receive about 50% of all TV revenue and said the lowest-performing charter team would see a 50% increase in payouts. Yates insists that NASCAR has met its contractual obligation to inform the teams of the prize money for the following year by November 1. He also noted that the number of teams was reduced to 32 charters due to NASCAR’s disinclination to re-offer 23XI and FRM their existing four combined charters.
Despite the heated discussions, both attorneys received praise from the judge for their “extraordinary” and “excellent” arguments. A written decision will be given by Friday. Jordan expressed confidence with the proceedings and joyfully stated, “I think we did a good job of that. But I’m looking forward to winning the championship this weekend.”
