NASCAR Today: Brutal Blow to Michael Jordan & Co. as Judge Declares Charter Losses ‘Risk of the Lawsuit’

One year after Michael Jordan took up arms against NASCAR, he has lost his assets. The NASCAR lawsuit featuring 23XI Racing and Front Row Motorsports vs. the sanctioning body has dealt several blows to the plaintiffs. From losing their chartered status to enjoying limited financial prizes as open teams, Jordan’s faction has gone through a lot. The final blow, however, may have come recently.

Soon after Michael Jordan and Co. filed a lawsuit in September 2024, the cards seemed to be falling in place. In December 2024, Judge Kenneth Bell granted 23XI and FRM chartered status for the 2025 Cup Series season. In 9 months, however, the same judicial dignitary has dealt a brutal blow to the teams.

The last domino in the NASCAR lawsuit

After the Fourth Circuit of Appeals overturned the December injunction in June, both 23XI and FRM had been competing as open teams. Recently, however, NASCAR had hinted at a potential buyer of the two teams’ six charters, despite notifying the judge about avoiding the redistribution of the charters. This was a fallout of bitter exchanges between the legal factions. That prompted Michael Jordan and Co. to file another 11-page preliminary injunction with Judge Bell, seeking recognition as chartered organizations until the NASCAR lawsuit’s hearing on December 1.

Sadly, Judge Kenneth Bell did not listen to Michael Jordan and Co. this time. In a recent update on X, Bob Pockrass wrote, “Judge Bell has DENIED the 23XI/FRM motion for preliminary injunction with NASCAR saying it will leave six charters (out of 40) available so if that is a remedy as a result of the trial, they are available. Therefore no irreparable harm.” So Bell determined the charter losses to be a ‘risk’ of filing the lawsuit in the first place.

Now, the two teams’ hard-earned charters from the now-defunct Stewart-Haas Racing will be at NASCAR’s disposal. And the sanctioning body is moving fast – it issued a letter to the 13 teams that signed the charter deal last season. President Steve Phelps let them know that the $1.5 million accrued from each of the six charters would be distributed among the teams. “If the Court denies Plaintiffs’ motion, NASCAR intends to pay the funds that would have been paid to those cars in Fixed Owner’s Payments and Performance Payments to the remaining active 2025 Charter holders,” the letter read.

Despite this disastrous consequence, 23XI/FRM attorney Jeffrey Kessler issued a toned-down response. “We are grateful that Judge Bell has made clear that the status quo is being maintained, protecting my clients’ rights to regain their charters if they prevail at trial and ensuring their ability to race throughout the 2025 season based on NASCAR’s commitments.”

Evidently, this marks a crucial turn in the NASCAR lawsuit and in Michael Jordan’s tenure in the sport. Meanwhile, however, a NASCAR veteran does not want to be part of this mess.

A distraction from the racetrack

For a year, the NASCAR lawsuit has occupied big headlines. Michael Jordan and Co.’s drive to disrupt a heavily entrenched 76-year legacy is something historic. And naturally, eyes were deflected away from events at the racetrack. Now, however, an industry veteran does not wish to focus on the legal feud, considering an ugly fallout. A string of profanity-laced messages from team owner Michael Jordan and NASCAR executives like Steve O’Donnell and Steve Phelps surfaced recently. For instance, the NBA legend targeted the non-suing Cup Series teams: “Teams are going to regret not joining us.” Then Steve Phelps warned that the deal “must reflect a middle position or we are dead in the water.”

However, Jeff Burton, former NASCAR driver and current commentator, does not want any part of this. With the NASCAR lawsuit attaining a distasteful flavor, he opined, “I mean, I’ll be honest with you. Unfortunately, in these things like that, things kind of get ugly from time to time, and you wish they didn’t.” Burton continued, “I’ll be honest, I’m trying to stay away from that. Trying to focus on the racing. We’ve had a lot of great racing this year ’cause the playoffs is the closest it’s ever been. And so, honestly, that’s getting all my energy.”

Michael Jordan and Co. face an abyss of challenges at present, with a hint of no return. Nevertheless, let us see what happens when the NASCAR lawsuit proceeds.