The difficult phase of the battle is in full swing. Michael Jordan and Bob Jenkins were fiercely confident when they filed the NASCAR lawsuit in October. However, that confidence fizzled out as the dominoes fell one by one. First, U.S. District Judge Frank Whitney denied the teams’ request for an expedited discovery of NASCAR documents. Then Whitney deprived both 23XI Racing and Front Row Motorsports of the opportunity to race next year.
Now, however, Jim France and Co. have entered offense mode against Michael Jordan. NASCAR is looking forward to snuffing out the entire lawsuit. If the court beckons favorably to the sport in this regard as well, four years of blooming 23XI would screech to an unpleasant end for Jordan.
Jordan faces the death knell in NASCAR lawsuit
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Spirits were buoyant among fans and drivers alike when two teams bravely stood out. 23XI Racing and FRM refused to sign the 2025 charter agreement and filed an anti-trust lawsuit. They claimed that NASCAR monopolized the market for premier stock-car racing, allowing it to keep a greater share of profits. Further complaints included acquiring premier racetracks and implementing policies that restrict teams from racing for NASCAR rivals. These accusations were part of a two-year-long negotiation between the Race Team Alliance and NASCAR, that involved demanding higher revenue and permanent charters.
However, now NASCAR seeks to diffuse the strength of that argument. While Michael Jordan and Co. fight to keep their breathing rights alive in the 2025 season, Jim France seeks to uproot the NASCAR lawsuit. Journalist Bob Pockrass updated on X that France and Co. have filed a motion to dismiss the lawsuit altogether. “NASCAR, as expected, has filed motion to dismiss 23XI/FRM lawsuit: “Plaintiffs’ Complaint reflects nothing more than dissatisfaction with business negotiations that didn’t go their way.” Kelly Crandall shared the exact wording of the motion: “Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb.”
NASCAR has filed a motion for the 23XI Racing/Front Row Motorsports lawsuit to be dismissed.
“Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb. Plaintiffs bring claims barred by the statute of limitations and laches; they…
— Kelly Crandall (@KellyCrandall) December 2, 2024
Since the NASCAR lawsuit kicked off, Jordan could not get time to get down to the real problem. Given Tyler Reddick’s elevated status after cracking the Final Four, surviving as a chartered team in 2024 was the priority. Yet that is exactly what NASCAR grabbed as its reason for seeking to dissolve the lawsuit. Crandall continued, “Plaintiffs bring claims barred by the statute of limitations and laches; they fail to plead any reduction in competition, meaning they do not have the required antitrust injury to establish antitrust standing; and they aim to renegotiate contractual terms rather than address genuine anticompetitive behavior. Plaintiffs’ claims should be dismissed.”
As things seem right now, the NASCAR lawsuit may roll towards a detrimental future.
Bleak prospects for the teams
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Other teams tipped their hats in respect to Jordan and Jenkins. The only reason for that was their tremendous guts to stake their love for racing for the NASCAR lawsuit. However, that battle is already shriveling at the roots, as NASCAR is tightening its offense. Back in October, it already announced that it plans to run in 2025 with 32 chartered teams (instead of 36 this year) and eight open cars (instead of four) in its 40-car field. That charted out 23XI and FRM’s impending doom, as both teams were compelled to sign an open agreement on November 16th. Although Jordan and Jenkins will be able to field cars next year, it would mean a drastic fall in revenue.
23XI co-owner Denny Hamlin opened up about the financial losses they could possibly incur and ensured that the owners and not their employees would bear it. “As 23XI, we’re prepared for any outcome. I think Michael [Jordan] has stated and I’ve stated to the team we will not let this affect our employees whatsoever in any kind of way, and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen,” said Hamlin. The major financial strain is not having a guaranteed seat for each race next season, therefore possibly missing out on a chunk of the season’s purse.
First of all, they would miss out on the Busch Light Clash at the Bowman Gray Stadium. The Daytona 500 alone is worth about 15% of the entire season’s purse. As open teams, 23XI Racing and FRM have no guarantee of running that race. So FRM owner Bob Jenkins dejectedly admitted to the risk of the NASCAR lawsuit. “Because of our love for the sport and our determination to maintain the race team we have built, we are determined to race next year even if we have to do so on an ‘open’ basis, but at some point, the losses may become so severe that we simply cannot continue — causing irreparable harm to our business, our employees, and the communities and fans we are associated with.”
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The future looks very dim. However, there is still a sliver of hope left for the two teams, as we await the court hearing. Let us see if NASCAR gets its way again or a stroke of luck befalls Michael Jordan.