Michael Jordan-owned 23XI Racing suffer major blow as judge makes key ruling in NASCAR lawsuit

Michael Jordan and Denny Hamlin's 23XI Racing, along with Front Row Motorsports (FRM), have been dealt another blow in court after a judge made a key ruling in their ongoing legal battle with NASCAR.

The two Cup Series teams sued the stock car racing series last October, and since then, they have gone back and forth over several key issues.

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Earlier this month, for example, a judge overruled an injunction allowing the teams to race with chartered status in 2025, meaning they now face losing said charters and the 'tens of millions' that go with them. The team has appealed and are seeking a rehearing on the matter.

Now, however, Michael Jordan and company have been dealt another blow in court, with a judge ruling that NASCAR's countersuit against the two teams can go ahead.

NASCAR countersued the two teams in March claiming that they violated antitrust laws during charter negotiations last year, with a court filing at the time reading: "The undisputed reality is that it is 23XI and FRM, led by 23XI’s owner and sports agent Curtis Polk, willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements."

Judge rules on NASCAR countersuit against 23XI and FRM

Last week, 23XI and FRM's legal representatives argued in court for the countersuit to be dismissed, with the judge taking time to consider his decision.

On Monday, he ruled in favor of NASCAR, however, allowing their lawsuit against the teams to go on.

In a court filing, United States District Judge Kenneth D. Bell wrote: “NASCAR has alleged unlawful ‘anticompetitive effects’. NASCAR contends that through actual and threatened ‘boycotts’ and the insistence on relatively more guaranteed money, the Counterclaim Defendants harmed ‘performance-based competition’ and the incentive for ‘open’ cars to race.”

“Of course, Plaintiffs have several responses to these allegations that will be considered at Summary Judgment (for example, that the alleged harm to ‘performance-based competition’ flows, if at all, from the guaranteed entry provision which NASCAR touts as a beneficial aspect of the 2016 Charter that was never at issue in the 2025 Charter negotiations, the absence of ‘antitrust injury,’ etc.), but the Court’s task at this stage of the proceedings is simply to determine if there is a 'plausible' claim.

“And, NASCAR has satisfied that (relatively) low bar. Therefore, the Court will allow NASCAR’s counterclaim to proceed towards a merits decision on its Rule of Reason Sherman 1 claim.”

Speaking after the judge denied their motion to dismiss NASCAR's countersuit, 23XI and FRM attorney Jeffrey Kessler said: "Judge Bell’s decision today is encouraging even though we are disappointed that he did not dismiss NASCAR’s meritless, retaliatory counterclaim."

"The judge’s recognition of many of our arguments, including the efficiency and necessity of joint negotiations and lack of credible evidence, reinforces our confidence that we will prevail in summary judgment.

"This counterclaim is a tactic by NASCAR to divide and distract.

"We remain confident in our case and motivated by our original intent – to ensure a competitive and fair sport for all drivers, fans, teams, and partners."

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