“It’s hard to picture a winner if this goes to the mat, or to the flag, in this case.” Judge Kenneth Bell’s ominous words a month earlier rang alarm bells for the NASCAR lawsuit. Since September 2024, Denny Hamlin, Michael Jordan, and Bob Jenkins have been in a legal battle with the stock car racing behemoth. After several exchanges of blows, the case looked to be developing in the teams’ favor. However, the team owners may finally lose some ground under their feet.

The main lawsuit dealt with NASCAR’s ‘monopolization’ of the sport through charters. But a parallel case developed surrounding the race teams’ financial security in the sport. That is where Jordan may have run out of options in a recent update.

Michael Jordan watches as his ambitions get pulled apart

Well, the spark of rebellion is finally beginning to fade. In September last year, 23XI Racing and Front Row Motorsports took a huge risk. Out of 15 Cup Series teams, they were the only ones who did not sign the new charter deal. Then, Michael Jordan filed a lawsuit against NASCAR to prove that it is violating antitrust laws through its charter deal. However, the narrative has flipped wildly in the past month.

On June 5th, a three-judge panel revoked the preliminary injunction that guaranteed both race teams’ charter security for the 2025 season. They reasoned that Jordan and Co. cannot enjoy the charters while suing NASCAR for it too; “you can’t have your cake and eat it too.” The teams, led by Jeffrey Kessler, tried to appeal this decision and requested a rehearing with the entire Fourth Circuit Court of Appeals. However, as of July 9th, this request has been denied. This left Michael Jordan and Co. on a time bomb.

The options are limited as the injunction expires 7 days later (July 16th), leading to both teams losing their charters. NASCAR Journalist Bob Pockrass detailed what NASCAR would do with 23XI and FRM’s charter money: “NASCAR could give the extra money to the chartered teams but also possible it is put in escrow until the lawsuit is completed and then once the litigation is completed, it would be determined (either by NASCAR or any court judgments) how it gets distributed.”

After July 16th, Michael Jordan and Bob Jenkins’ team will suffer significant financial losses, and certain contracts will be considered void. The six charters they currently hold, including two that they purchased from Stewart-Haas Racing (with legal help) last year, have an uncertain fate. Both 23XI Racing and Front Row might be compelled to bring open-car entries to Dover Motor Speedway.

Bob Pockrass continued on the likelihood of 23XI and FRM getting their charters back in the future. He wrote on X, “If the teams win the lawsuit, then how/if they would get their charters back would be determined then. If they lose it, I’d be surprised if they get them back. Also could be something negotiated if there is a settlement.”

Despite the denial of the teams’ security, Jeffrey Kessler said that the main lawsuit would go on. Kessler said in a statement, “This decision has no bearing on the strength of our antitrust case, which we look forward to presenting at trial. We are committed to racing this season as we continue to fight for more competitive and fair terms for all teams to ensure the future of the sport, and remain fully confident in our case.”

While NASCAR attains a winning sheen in this case, it is also dealing with a separate case.

Entwining others in the controversy

Well, the main factor in Michael Jordan’s lawsuit revolves around revenues. This aspect in the legal battle has prompted the race teams to get access to the financial records of other organizations. These include the NFL, NHL, NBA, and IndyCar, to draw a comparison with NASCAR. The sanctioning body, on the other hand, has also demanded information.

This includes financial data from race teams like driver salaries, sponsorship amounts, manufacturer deals, and other information. Attorney Adam Ross, who represented five teams, asserted that NASCAR should not have access to such sensitive data. NASCAR was apparently trying to find a profitable team and then use that to disprove the 23XI and FRM allegations. “This is a crisis for all 12 teams that are represented here,” Ross told the court.

Similarly, IndyCar also filed an appeal against its involvement in this lawsuit. NASCAR is in a battle with its open-wheel rival regarding deposing IndyCar President Doug Boles. IndyCar’s court filings, according to Bob Pockrass, read: “INDYCAR has filed motion in federal court in Indiana to keep NASCAR from deposing Doug Boles in 23XI/FRM lawsuit. Deposition scheduled for Friday. INDYCAR argued it has provided 650 pages of documents, that NASCAR is competitor & deposing Boles is burdensome & unnecessary.”

Clearly, the lawsuit has gone haywire from a lot of standpoints. Especially for Michael Jordan and Co., as they are watching their Cup Series dream get torn apart.