23XI Racing finds itself in a challenging position. After withdrawing its preliminary injunction appeal, Michael Jordan’s team is set to compete in the ‘open’ category for the 2025 NASCAR season—a significant setback as they continue their legal battle against NASCAR. They share this predicament with Front Row Motorsports, both teams now excluded from the financial perks of NASCAR’s charter system, which benefits the other 13 teams.
Without guaranteed spots in Cup Series races, the future for this so-called “rebellion” looks uncertain. Both teams have accused NASCAR of monopolistic practices, but sustaining their operations in 2025 will be a daunting task.
23XI Racing and Front Row Motorsports had pinned their hopes on anti-trust attorney Jeffrey Kessler to secure a preliminary injunction that would let them keep their charters while challenging NASCAR in court. However, Judge Frank D. Whitney ruled against it, stating there was no concrete evidence of irreparable harm if the teams raced as open entries in 2025. Shortly after, a court filing indicated “changed circumstances” in the case, leading to the appeal being dropped.
Operating as an open team poses significant risks for 23XI Racing. NASCAR insider Brad Gillie highlighted that while the chance of missing races like the Daytona 500 is real, the larger issue is the financial strain. Without the charter agreement’s income, 23XI faces higher costs without the usual returns.
Despite these challenges, Michael Jordan and Denny Hamlin have assured employees that they will be protected, regardless of the legal outcome. However, the team must find ways to manage reduced earnings while balancing operational costs. Whether this means Jordan absorbing significant losses or cutting the budget—and potentially jobs—some level of compromise appears inevitable.
One potential lifeline for 23XI Racing is Michael Jordan’s global brand. By leveraging his marketability, the team could attract new sponsors and partnerships, easing the financial burden while continuing their legal fight. Though far from simple, exploring these opportunities may provide the stability needed for 2025.
Front Row Motorsports (FRM) faces even steeper challenges. After expanding to three full-time cars in 2023 by purchasing a $20–25 million charter from Stewart-Haas Racing, FRM now finds itself racing as an open team in 2025. Unlike 23XI, FRM lacks a figure like Michael Jordan to draw sponsorships and generate additional revenue streams.
Gillie pointed out that this move is riskier for FRM because their resources are more limited, leaving them vulnerable if they cannot secure consistent race entries. The financial investment they’ve already made heightens the stakes, making the ongoing legal battle even more critical for their survival.
For both teams, much depends on the efforts of attorney Jeffrey Kessler. A victory in court could reshape NASCAR’s structure, but until then, the uncertainty looms large. For 23XI and FRM, navigating this period will require creativity, resilience, and strategic planning to weather the storm.
