Michael Jordan-owned 23XI team could leave NASCAR MID-SEASON after appeal hearing

Michael Jordan's co-owned team 23XI Racing and Front Row Motorsports could lose their charters for the 2025 Cup Series season after possibly their worst day yet in their lawsuit against NASCAR.

The early signs for the lawsuit were positive in December last year, with a judge granted an injunction ruling that the teams should be allowed to race as charter teams while the case was working through the courts.

However, a three-judge panel heard NASCAR's appeal against that ruling at the US Court of Appeals on Friday, and seemed less than sympathetic to 23XI and FRM's side.

A large part of the judges' questioning of attorney Jeffrey Kessler centered around why the teams should be allowed to both race as chartered teams and sue for damages, implying that it would be more reasonable for them to race as open entries while suing for damages.

23XI and FRM attorney: We risk drivers leaving

Kessler fought back against that idea, telling the panel: "It was found it is not economically viable to have to qualify each week – you may not get in, you lose your sponsors, you lose your drivers. It's in the record that our drivers have contracts. If we are not chartered teams, they can abandon us and go to different teams."

Meanwhile, NASCAR attorney Chris Yates argued that the court-mandated charters were unfair to other teams in the sport as well as the sport itself, with the revenue being split in larger portions among fewer teams without 23XI and FRM.

"The point is that two-thirds of this season remains," he said, "and other racing teams would receive more money if NASCAR was not making guaranteed payments under a court-mandated contract to these plaintiffs. And that is a real harm, not just to NASCAR, but to other racing teams."

It's possible that the panel will give their ruling on the appeal before the end of the month, although sometimes they take months to deliver a decision.

NASCAR HEADLINES: Michael Jordan-owned 23XI Racing drop legal challenge as Christopher Bell slams 'life-altering' penalty

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