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Michael Jordan‘s ongoing court battle with NASCAR on behalf of his 23XI race team took a major hit on Thursday when a federal judge overturned a previously granted preliminary injunction. The injunction allowed 23XI, as well as Front Row Motorsports, to compete as chartered teams while the lawsuit took place despite not signing the latest charter agreement.
The charters guaranteed 23XI’s three full-time drivers: Bubba Wallace, Tyler Reddick, and Riley Herbst, a spot in each of the 36 races this season. They also guarantee teams far larger payouts at each race, and sponsorship agreements are often tied to teams holding NASCAR charters.
Both 23XI and Front Row Motorsports refused to sign the current charter agreement, alleging that NASCAR strong-armed other teams into doing so by using monopolistic and anti-competitive practices.
Latest Court Ruling Could Leave Michael Jordan’s 23XI NASCAR Team In A Bad Spot
According to Jordan Bianchi of The Athletic, “If NASCAR chooses to follow through by stripping the charters, the teams would lose approximately a combined quarter billion dollars in charter values in addition to the lower race winnings they will now receive.”
The teams may still, and are expected to, appeal the ruling by the federal court.
In addition to the financial ramifications, both 23XI and Front Row Motorsports risk losing its star drivers amid the new ruling.
23XI driver Tyler Reddick, who finished fourth in the 2024 Cup standings, has an opt-out clause in his contract and could become a free agent if the team does not secure a charter for next season. The same clause is believed to be included in the contract for driver Bubba Wallace.
Both Reddick and Wallace bring significant sponsorship dollars to the team.
NASCAR must now also ask itself if it wants to risk alienating an owner of Jordan’s stature. Yes, the series will be fine without Jordan, as it was before he came on board in 2021. But at a time where NASCAR is looking to find new audiences, turning away perhaps the most recognizable name in the sports world is one heck of a gamble.