The legal confrontation between 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and NASCAR is set to intensify as both parties prepare for a significant trial in December 2025. The dispute centers around an antitrust lawsuit filed in October 2024 in the U.S. District Court for the Western District of North Carolina. The teams, which include Front Row Motorsports, argue that NASCAR’s charter-based system constitutes anti-competitive behavior that violates the Sherman Act.
The trial comes after a series of procedural developments that have already impacted the teams’ standings. Recently, Judge Kenneth D. Bell approved a preliminary injunction allowing 23XI and Front Row to compete as chartered teams despite not having signed NASCAR’s charter deal for 2025. This decision, however, faced a setback in June 2025 when the Fourth Circuit Court of Appeals overturned the injunction, siding with NASCAR and jeopardizing the financial stability of the teams.
In preparation for the upcoming trial, both 23XI and NASCAR have agreed to a set of ground rules aimed at maintaining focus on the economic issues at stake. These stipulations prohibit personal attacks, disallow references to past legal disputes, and prevent discussions regarding the departure of former NASCAR executive Brian France. The intent is clear: to keep the proceedings centered on the critical questions surrounding competition, contracts, and the charter system.
At the heart of this legal struggle lies the charter system itself. 23XI and Front Row contend that the framework restricts competition by locking teams into participation agreements, thus limiting opportunities for new or non-chartered entrants. NASCAR, on the other hand, argues that the charter structure provides stability, encourages investment, and protects the financial foundation of both teams and the sport.
The stakes are high as the outcome of this trial could have lasting implications for the NASCAR Cup Series. Key issues include guaranteed race slots, revenue distribution, and the overall sustainability of team operations. The verdict could potentially reshape the competitive landscape for years to come.
Despite the ongoing legal battles, Denny Hamlin remains resolute about their objectives. He emphasized, “Dec. 1 is all that matters,” highlighting the team’s determination as they move closer to the trial date, underscoring the critical nature of their fight against NASCAR’s charter system.
As the trial approaches, the focus will be keenly on how this case evolves and its potential repercussions on the future of NASCAR and its teams. With both sides gearing up for what promises to be a contentious legal battle, the motorsport world watches closely.
