Breaking news: What does NASCAR appeal hearing mean for l… read more
What does NASCAR appeal hearing mean for l… read more
Michael Jordan’s 23XI Racing could be facing a major setback off the track, which may have bigger implications than their current struggles on it. Despite expanding to four cars for the first time during the recent NASCAR Cup Series race at Kansas, the team failed to place any higher than 13th. However, their lack of results may be overshadowed by ongoing legal troubles that threaten the foundation of the team’s operations.
Currently, 23XI Racing and Front Row Motorsports (FRM) are involved in a legal dispute with NASCAR over their charter status—a designation that guarantees entry into every race and offers commercial stability. In December 2024, a judge ruled in favor of the teams, granting an injunction that allowed them to continue competing as charter teams while the lawsuit proceeds through the court system.
However, NASCAR appealed that decision, and a three-judge panel from the U.S. Court of Appeals recently heard arguments in the case. During the hearing, the panel appeared skeptical of the teams’ position, questioning why they should be allowed to continue racing under the protected charter system while simultaneously suing NASCAR. The implication was that if the teams want to pursue legal damages, they should do so without the guaranteed privileges that come with charter status—possibly as open entries, which would require them to qualify for each race.
The panel’s decision is expected by late May or early June. If they reverse the injunction and rule in NASCAR’s favor, 23XI would lose its charter status and be forced to qualify for every race. This could significantly impact their operations, as racing without a charter could jeopardize existing contracts with drivers like Bubba Wallace and Tyler Reddick, and could cause sponsors to walk away due to the increased uncertainty.
Attorney Jeffrey Kessler argued during the hearing that forcing the teams to race without charters would be economically devastating. He emphasized that the drivers’ contracts are tied to their charter status and that losing this designation could lead to the collapse of the team.
Although the judges acknowledged that 23XI and FRM may have a valid case when the full trial begins in December, they clarified that the outcome of the injunction hearing is separate from the merits of the broader lawsuit. Nonetheless, a loss at this stage could significantly weaken 23XI Racing’s position and even threaten its long-term future in the NASCAR Cup Series.
