NASCAR says Michael Jordan
antitrust suit is to force permanent charter no other team has
[August 20, 2025]
By JENNA FRYER
CHARLOTTE, N.C. (AP) — NASCAR argued in its latest court filing that
Michael Jordan is suing the stock car series to earn a permanent
charter that no other teams possess, and that neither 23XI Racing
nor Front Row Motorsports has suffered any harm by racing as “open”
entries.
NASCAR also indicated in its 34-page response filed late Monday that
it has buyers interested in the six charters that have been set
aside as a federal judge decides if the two teams can have them back
for the remaining 11 races of this season. NASCAR is prepared to
immediately begin the process of allocating the charters elsewhere.
These latest arguments are part of the ongoing federal antitrust
lawsuit filed by 23XI and Front Row against NASCAR in a fight over
charters, which are essentially franchise tags. 23XI, owned by
basketball Hall of Famer Michael Jordan and three-time Daytona 500
winner Denny Hamlin, and Front Row, owned by entrepreneur Bob
Jenkins, were the only two organizations out of 15 not to sign
extensions on new charter agreements.
All the teams were fighting to have the charters made permanent
during more than two years of extension negotiations, but NASCAR
refused and its final offer was a seven-year extension with an
additional seven-year option beyond that. 23XI and Front Row won a
temporary injunction to be recognized as chartered as the case heads
toward a Dec. 1 trial date.
The injunction was eventually overturned and appealed by the teams.
U.S. District Judge Kenneth Bell will hear arguments Aug. 28 on the
matter. 23XI and Front Row as “open” teams do not receive the same
financial percentages as chartered teams.
NASCAR asked in the filing that 23XI and Front Row return all money
they were paid when they were recognized as chartered teams this
season. NASCAR said the money would be redistributed to the 30
current chartered teams.
A rulebook change in July after the chartered status was stripped
from the two organizations ensured that the six cars aren't in
danger of not qualifying for a race; starting spots are guaranteed
to the 36 chartered cars in every 40-car field.
“Mr. Jordan has said he wants to use the litigation to grant him a
permanent Charter that no other team has,” NASCAR alleged.
23XI and Front Row have maintained they will continue to race even
if they must do so as open teams. NASCAR has argued that when the
two organizations did not sign the extensions they lost all rights
to charters and the sanctioning body should be free to move them.
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Bob Jenkins, owner of Front Row Motorsports and Co-Owner Michael
Jordan, of 23XI Racing, pose before a NASCAR Cup Series auto race at
Talladega Superspeedway, Oct. 6, 2024, in Talladega, Ala. (AP Photo/
Butch Dill, File)
“Plaintiffs’ theoretical inability to obtain
Charters post-trial also does not justify NASCAR from selling or
transferring Charters, because Plaintiffs do not have Charters now
because of their own strategic choice," NASCAR said in its filing.
"Plaintiffs had multiple opportunities to acquire 2025 Charters, and
they squandered them.”
NASCAR also argued that a court cannot order the private company
into a partnership with teams it is not interested in doing business
with. Another argument by NASCAR is that 23XI and Front Row have not
been harmed by not being chartered because their drivers have not
left the team and the rule change protects them from missing races;
Tyler Reddick of 23XI has clauses in his contract that he can leave
if his car is not chartered.
Additionally, NASCAR said it pays teams a higher percentage than
even Formula 1 does and that its payout structure to teams proves it
is not a monopoly because it was increased first by 28% in the 2016
charter agreement, and then by 62% in the 2025 agreement.
“NASCAR pays Teams more than even Formula 1 as a percentage of
profit," NASCAR said. “Plaintiffs ignore the pay raises the Teams
received. Instead, they focus on a text during negotiations for the
2025 Charter that said an internal version of the May 2024 draft
contained ‘zero wins’ for Teams.
"Plaintiffs ignore that the actual May 2024 draft proposed to Teams
carried forward the biggest win for the Teams — a massive pay
increase — that was set out in the December 2023 draft. It also gave
Charter holders an opportunity to obtain any improved extension
terms NASCAR offered to third parties and increased Teams’ ability
to receive investor funding, among other benefits.”
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