NASCAR Lawsuit: Tony Stewart’s Depleting NASCAR Stock Leaves Michael Jordan in the Trenches as Their Partner in Crime Sneaks Past

The ongoing NASCAR lawsuit has taken an unexpected twist. With Stewart-Haas Racing shutting down at the end of the 2024 season, its charters were up for grabs for teams looking to expand their Cup Series operations. Amidst the ongoing legal battles, both Front Row Motorsports and 23XI Racing decided to purchase SHR’s charters despite the uncertainty. As it turns out, the inevitable has happened, as the sanctioning body has rejected the transfers.

While both the teams seem to be in hot water, recent updates by FOX Sports journalist Bob Pockrass reveal that 23XI Racing might be in a worse situation. Are Michael Jordan and Denny Hamlin’s team being subjected to NASCAR’s wrath after daring to take them to court?

Is the NASCAR lawsuit a losing battle for the plaintiffs?

It seems like NASCAR isn’t taking too kindly to being taken to court. The sanctioning body recently filed a motion to dismiss 23XI Racing and Front Row Motorsports’ anti-trust lawsuit, calling the complaint a “misguided attempt to dress up private business frustrations in antitrust garb.” It all began when both teams refused to sign a charter proposal at Atlanta Motor Speedway, after being given a 6-hour window to put pen to paper or risk losing their charters. While 13 teams signed the agreement, the two holdouts took them to the Federal Court of North Carolina in October for monopolistic practices.

To retain their charters amidst the NASCAR lawsuit, both teams filed a preliminary injunction which was subsequently denied. The sanctioning body has also rejected the teams’ request to expand its Cup Series operations, with Bob Pockrass tweeting, “NASCAR filing today indicates it won’t consider charter transfer of SHR charters to 23XI/FRM as they “purchased these Charters fully aware that they contained a release provision, which needed to be accepted for any requested transfer to be considered.” But that’s not all, as the journalist also shared that “SHR has recently submitted a request for a charter transfer to Front Row (but no mention of one for 23XI, implying that hasn’t been done yet).”

If NASCAR’s request is accepted, the move could be a bitter blow for 23XI Racing and Front Row Motorsports. Michael Jordan and Denny Hamlin’s team have recently signed Riley Herbst, who will be competing in the No. 35 Toyota during the 2025 season. Meanwhile, Bob Jenkins’ side has not yet announced a third driver, who will join Michael McDowell and Todd Gilliland in next year’s Cup Series campaign. However, Front Row Motorsports seems more likely to expand its operations at NASCAR’s highest level, as Stewart-Haas Racing has submitted its charter transfer request while 23XI seems to be in limbo.

With both teams filing another preliminary injunction after gathering ‘new evidence’ in the NASCAR lawsuit, Jeffrey Kessler’s clients will hold out hope of not being forced to run as open teams next year. However, there is a realistic chance that they might be forced to do so, which will significantly increase their costs while not guaranteeing them a spot in every race of the season. While the repercussions of such a situation are unclear, losing their charters will be less than an ideal situation for the plaintiffs, who are hoping that the court sees the “irreparable harm” that it could cause.

In anticipation of the possibility of running as open teams, 23XI co-owner Denny Hamlin has already ensured that his employees would be protected from any financial losses, saying, “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.” However, NASCAR has now filed a motion that would certainly cause immense financial losses to 23XI and FRM.

NASCAR files a motion to dismiss the anti-trust lawsuit

Over the years, the France family has controlled NASCAR and its stakeholders with an iron fist. It should come as no surprise that 23XI Racing and Front Row Motorsports’ ‘rebellion’ hasn’t gone down well with the sanctioning body, with the organization and Jim France filing for a dismissal of the ongoing lawsuit. The motion was filed on December 2nd and highlighted many reasons why the NASCAR lawsuit had no merit, urging the court to dismiss the case immediately.

Highlighting that 23XI and Front Row’s NASCAR lawsuit claims have no merit, the filing read, “For instance, Plaintiffs concede the Charters are ‘worth millions of dollars’ and NASCAR increased the revenues available to teams after the last round of negotiations. This behavior is the exact opposite of what one would expect from a monopsonist; if NASCAR truly had market power, it would be decreasing its demand for Plaintiffs’ services and lowering the amount by which it compensates them.”

In a separate filing, the plaintiffs were also accused of dragging Jim France to court unnecessarily, without having any factual information to back up their claims. It said, “They also fail because Plaintiffs have not provided any factual allegations showing Mr. France “actively and knowingly engaged” in the alleged anticompetitive scheme.” With the ongoing NASCAR lawsuit taking a new turn, 23XI Racing and Front Row Motorsports have until December 16 to respond and defend their case. While the battle may seem like David taking on Goliath, both teams will hold out hope for the best outcome in court.