NASCAR appeals case against Michael Jordan

Sixty-eight pages, that's the size of the document that the NASCAR filed with the court to appeal Judge Kenneth Bell's decision in December to allow teams 23XI (owned by Michael Jordan and Denny Hamlin) and Front Row (managed by Bob Jenkins) to participate in the 2025 season as franchised teams, thus having the same financial benefits and guarantees of participation in all the races of the season as the other teams entered. However, the two entities had refused to sign a new document sent to NASCAR in early September 2024, a document required to receive one of the precious franchises. With three cars each, the two teams represent a sixth of the grid with a franchise.

NASCAR explains in its appeal: “The district court’s injunction orders flout federal antitrust law, misapply established rules governing the use of preliminary injunctions, ignore unrebutted and legally significant evidence, and have far-reaching implications for the 2025 NASCAR Cup Series season. These injunctions abuse judicial power to force NASCAR to treat its litigating opponents as its business partners and confidants, thereby undermining the mutual trust that has fueled NASCAR’s growth and success.”

The heart of the action brought by 23XI and Front Row is based on the application of American antitrust laws, which limit monopoly situations as much as possible. For the two teams in dispute, NASCAR places itself in this situation given that it manages the four national stock-car series in the USA, and that it redistributes at will the sums of television rights in particular to the teams, without necessarily consulting them. For NASCAR, not accepting the terms of a contract is not enough to bring a lawsuit on the basis of antitrust laws.

"While all other team owners who were offered contracts with these improved terms accepted them, these two held out - raising concerns about several provisions, but not the mutual releases.", NASCAR wrote. “NASCAR eventually withdrew its offers to the plaintiffs and moved forward with planning for the 2025 Cup Series season without them as franchise teams. So 23XI and Front Row turned to the courts, attempting to turn the standard franchise waiver clause into a trump card to late, outside of negotiations, secure the franchises they regretted rejecting — even though no team owner ever raised the clause as an issue during the two years of negotiations. With neither the facts nor the law on their side, 23XI and Front Row argue that the sports governing body’s inclusion of these standard waivers in their agreements violates the Sherman Act. The district court took the bait.”

The rest of the case is scheduled for later in the year. One thing is for sure, the six cars of the two teams will participate in the Daytona 500 this weekend, and should not be worried for the start of the season.

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