A federal judge on Wednesday denied 23XI Racing and Front Row Motorsports a preliminary injunction they were seeking in their antitrust lawsuit against NASCAR.
In issuing his ruling, U.S. District Judge Kenneth D. Bell said he denied the injunction because NASCAR pledged not to sell any of the six combined charters held by 23XI and Front Row until the ongoing lawsuit was settled. The trial is scheduled to begin on Dec. 1.
As Bell stated in a hearing last week in downtown Charlotte, N.C., he did not want to issue a ruling that could potentially poison the jury pool, and his decision Wednesday reaffirmed that stance.
“As the Court noted at the hearing on this motion, the Court believes that it is best not to provide its forecast of the Plaintiffs’ likelihood of success on the merits, and thereby potentially bias the jury pool, unless it is necessary to do so, which it is not here,” Bell wrote.
“Plaintiffs also complain about NASCAR’s refusal to acknowledge their ownership of the Charters purchased from the Stewart-Haas team. However, the Court need not resolve that ownership claim in this Order. The Parties’ rights and obligations with respect to those Charters will be determined after trial.”
Bell also again issued a warning to both parties that the outcome of this case, in favor of either side, could fundamentally alter NASCAR.
“The uncertainty about what the 2026 season will look like unfortunately exists not just for the Parties, but for the other teams, drivers, crews, sponsors, broadcasters and, most regrettably, the fans,” Bell wrote.
23XI is co-owned by NBA legend Michael Jordan and three-time Daytona 500 winner and active Cup driver Denny Hamlin. Front Row is owned by restaurant magnate Bob Jenkins. The two teams filed a joint lawsuit against NASCAR and its CEO and chairman Jim France last fall, alleging monopolistic practices.
Displeased with NASCAR making a take-it-or-leave-it offer and imposing a short deadline to agree to an offer that would extend the charter agreement, 23XI and Front Row balked. Of the 15 Cup Series teams that hold 36 available charters, 23XI and Front Row were the only teams that declined to sign the extension that guarantees teams certain revenues and starting spots in all points races.
The teams have argued in court that they faced “irreparable harm” should they lose their charters, including the potential loss of sponsors and drivers opting out of their contracts, since those deals require them to be placed in chartered cars.
Bell addressed this issue in his ruling on Wednesday.
“The loss of the ‘fixed’ Charter payouts and the uncertainty of ongoing relationships with drivers and sponsors can either be compensated with money damages at trial or is simply inherent in the risks associated with the lawsuit,” Bell wrote. “What will happen for the 2026 racing season will remain unsettled for everyone involved in the NASCAR Cup Series until after trial (or an earlier resolution among the Parties). Therefore, there is no irreparable harm with respect to the loss of ‘Charter rights’ for the remainder of the 2025 Cup Series.”
23XI and Front Row having their injunction denied on Wednesday could result in additional payments being distributed to the 13 teams that signed the charter agreement.
In a letter NASCAR sent last week to the 13 charter teams, which was obtained by The Athletic, NASCAR commissioner Steve Phelps outlined how the 13 teams would benefit should Judge Bell deny the injunction sought by 23XI and Front Row and be forced to race as “open” teams for the remainder of the 2025 season.
According to the letter, any team holding one of 30 charters is set to earn approximately $1.5 million more per charter. That figure takes into account $25,146,300 already paid 23XI and Front Row in “Fixed Owner’s Payments and Performance Payments during the period that the Court’s prior preliminary injunction order was in effect (the first 20 points races of the 2025 Cup Season; through Sonoma)” and must be paid back to NASCAR, which would then distribute $838,210 to each charter holder.
Another factor that now goes into effect, Phelps wrote, is that should Judge Bell not restore the 23XI and Front Row’s charter status for the remainder of the season — as he ruled on Wednesday — each charter holder would get “approximately $670,000 on average per charter.”
Phelps closed the letter by stating: “This litigation continues to be a cloud over the season, which is unfortunate. We want the teams, drivers and growth of our sport to be the focus especially in a crowded sports landscape competing for fans, sponsors and media dollars. We thank you for helping to keep the focus on the positive things happening in the NASCAR Cup Series and we thank you for your partnership.”
(Photo: Jeff Robinson / Icon Sportswire via Getty Images)
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