Denny Hamlin has always been bold, both on and off the racetrack. But in October 2024, he took a risk unlike any other in his career. Along with Michael Jordan and Hamlin’s 23XI Racing, Front Row Motorsports (FRM) filed a massive antitrust lawsuit against NASCAR. The claim? The sport’s governing body operates like a monopoly. While speaking about it, he claimed, “I’m risking a lot… Financially. I’m putting my reputation on the line. It’s all a risk, but it’s all for the better good.”

The case quickly turned heads across the industry. At the center of this legal war is NASCAR’s charter system — the very system that gives race teams value, stability, and a share in revenue. 23XI and FRM stood alone as the only two out of 15 teams to reject the 2025–2031 charter agreement. Their argument was clear: the terms were unfair and suppressive. NASCAR responded with a strong counterclaim, naming Jordan’s business partner, Curtis Polk, for allegedly staging a rebellion for not turning up at the Daytona 500.

But all the noise off-track hasn’t kept Hamlin or his team from pushing forward. “Business as usual,” he says. Still, the risks are real and rising. And what started as a push for equality might backfire. Now, Michael Jordan & Co. find themselves in the middle of a legal mess. And if the judges rule against them, it’s not just court costs at stake, they could lose key drivers and sponsors. The decision to take on NASCAR could cost them big.

Legal turbulence could shake up 23XI and FRM’s future!

After a lot of discussions, in October 2024, Denny Hamlin and Michael Jordan led 23XI joined hands with Front Row Motorsports to call out NASCAR’s ‘monopolistic behavior.’ While the case was pending, in December 2024, a federal judge granted 23XI Racing and FRM an injunction. This allowed them to race as chartered teams in 2025, despite not signing the updated agreement. The court also approved their purchase of charters from Stewart-Haas Racing.

That decision gave them legal breathing room. But it didn’t resolve the deeper conflict, and now, the pressure is back. The case returned to court on Friday Morning. A three-judge panel at the U.S. Court of Appeals heard arguments on whether 23XI and FRM could keep their chartered status. The hearing made it clear: judges were sceptical. They questioned whether the teams could demand the benefits of a contract while also suing to dismantle it. “Have your cake and eat it too,” said Judge Paul Niemeyer. He wasn’t buying the logic.

The issue cuts deeper than contract language. NASCAR argued that allowing 23XI and FRM to operate as chartered teams while suing the sport harms the other 13 teams that did sign. That’s millions in revenue at stake. NASCAR claims the injunction gives those two teams money they didn’t earn under the agreed terms. That puts the integrity of the entire system at risk. If the court sides with NASCAR, the impact will be massive.

The charters could be revoked. And without a charter, a team isn’t just demoted, it loses guaranteed race entries, prize money, and value. That ripple effect reaches drivers. NASCAR insider Bob Pockrass reported that while teams don’t need to leave drivers, it mainly depends on their contract. “Team contracts with drivers require a chartered car, so theoretically the drivers could leave,” he replied to a fan’s question.

Notably, during the maiden hearing of this legal battle in November, Pockrass had reported that 23XI Racing driver Tyler Reddick and some sponsors could leave the team if it runs as an open charter. While Noah Gragson, who joined FRM for the 2025 season, has admitted to being somewhat disconnected from the legal proceedings. He stated, “I’m probably not the guy to ask but I do feel confident we’re going to race,” indicating his focus remains on racing rather than the lawsuit’s details.

While most drivers have stood by their teams, uncertainty like this can shake confidence. Especially when careers and millions in earnings hang in the balance. So, what’s next? Both sides could push for mediation. Judges encouraged it. NASCAR’s legal team said they’d participate, but warned, “We’re not going to rewrite the charter contract.” That leaves little room for compromise. Still, 23XI’s lawyer, Jeffrey Kessler, insists they want a solution. The trial is scheduled for December. That’s when the real battle begins. But a window for settlement is closing fast. And for the time being, the options for the two teams are limited.

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Formula 1 isn’t coming to Michael Jordan’s aid

NASCAR isn’t like most popular sporting series or leagues, where they have a governing body and franchises that run the show. Ever since its inception, the sport has been run and operated by the France family, making NASCAR’s lawsuit unique. Now, to make their arguments in the court against the sanctioning body, the two teams wanted to lean on Liberty Media, the owners of F1, to disclose their financial agreement with the teams. They even issued a subpoena to them to get information about the revenue split between the governing body and the teams.

But Liberty Media didn’t approve of this request by the teams, and in turn, 23XI and FRM also made a U-turn, dropping this pursuit. “23XI/Front Row has dismissed court proceedings with Liberty Media (Formula 1) in trying to compel compliance with their subpoena for F1 financial info. Either the teams settled and got some info, or just dropped this quest. Other cases against INDYCAR, NFL, NHL, NBA continue,” Bob Pockrass reported this via X.

It’s unclear whether the two parties struck a deal in private or the teams simply gave up the chase. But one thing is clear: F1 won’t be opening up their books to help MJ and his NASCAR team.