A judge denied a motion filed by NASCAR in a legal battle between the stock car racing circuit and two of its race teams – including one owned by NBA icon Michael Jordan.
Jordan’s 23XI Racing joined forces with Front Row Motorsports (FRM) to file a lawsuit against NASCAR last October – alleging that the governing body’s actions violate anti-trust laws.
The lawsuit accuses NASCAR and the France family (which has owned and operated the league since inception) of monopolizing American stock car racing. The family has denied this claim.
The ongoing suit has been brutal and is set for trial proceedings to begin on December 1. On Monday, a judge in North Carolina passed down an important ruling in the case.
NASCAR demanded that the court issue an order to show cause – forcing 23XI, FRM, and their lawyers to explain why sanctions shouldn’t be imposed against them for presenting ‘manufactured evidence’.
On Monday, the court denied the racing organization’s motion for an order requiring the two teams to show cause.
A judge ruled in favor of Michael Jordan’s race team in its ongoing lawsuit against NASCAR
The judge rejected NASCAR’s request for an order to show cause amid the league’s claim that Jordan’s team, another plaintiff, and their lawyers made false statements
In the motion, NASCAR’s attorneys accused the plaintiffs of making false statements in declarations made in December 2024 – as well as manufacturing evidence which was submitted to support a second motion for a preliminary injunction.
The racing circuit presented messages from the agent of 23XI owner and current Joe Gibbs Racing driver Denny Hamlin, 23XI president Steve Lauletta, 23XI drivers Bubba Wallace and Corey Heim, FRM owner Bob Jenkins, and FRM general manager Jerry Freeze.
NASCAR also accused one of the plaintiff’s attorneys of writing emails which ‘were false’ and were relied upon to grant an injunction which has since been vacated after an appeal from the racing organization.
23XI and FRM’s lawyer, Jeffrey Kessler, dismissed NASCAR’s claim as ‘another baseless distraction intended to try to divert the Court’s attention from the overwhelming evidence that demonstrates that Jim France and NASCAR have been operating an unlawful monopoly that has hurt not just my clients, but all of stock car racing.’
The suit filed against NASCAR accuses the league of monopolizing American stock car racing by owning a majority of the tracks NASCAR races on, imposing exclusivity deals on NASCAR-sanctioned tracks, acquiring its biggest competitor (ARCA), preventing teams from participating in any other stock car races, and forcing teams to buy parts from single-source suppliers chosen by the racing organization.
Also central to the suit is the ‘charter system’ – where teams pay tens of millions of dollars per car for the right to a guaranteed starting spot and a share of a preferred purse.
While locking down that starting spot is important in the search for sponsorships, the cost of charters have fluctuated through the years. It’s believed to have cost about $30m per charter this year.
FRM and 23XI are the only two teams who declined to sign a new charter arrangement which runs from 2025 to 2031.
Jordan’s team and Front Row Motorsports are suing NASCAR for alleged anti-trust practices
Tyler Reddick (L) is currently the lead driver in the points standings for 23XI Motorsports
Speaking on the suit last season, Jordan said, ‘Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track.
‘I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.’
Both FRM and 23XI are still racing in NASCAR for the 2025 season. 23XI has four drivers: Tyler Reddick (7th in driver’s standings), Wallace (10th in standings), Riley Herbst (35th), and Burt Myers (42nd). FRM’s three drivers – Zane Smith, Todd Gilliland and Noah Gragson – are 27th, 31st, and 33rd respectively.
