Denny Hamlin and Michael Jordan have achieved a significant victory in their ongoing legal battle with NASCAR. After initially being denied a preliminary injunction, the owners of 23XI Racing and Front Row Motorsports (FRM) refiled their motion, this time successfully convincing U.S. District Judge Kenneth D. Bell of the potential irreparable harm to their teams without chartered status for the 2025 season.
Initially, 23XI Racing faced setbacks when their request for discovery and injunction was denied. However, this recent ruling has shifted the momentum in their favor, leaving NASCAR in a challenging position. NASCAR plans to appeal the injunction ruling, and as the situation escalates, Denny Hamlin has openly criticized NASCAR for its approach. In a bold move, Hamlin took to Instagram to highlight the irony of NASCAR’s recent push to expedite court proceedings during the Christmas holiday, despite previously opposing a Thanksgiving hearing schedule proposed by 23XI Racing and FRM.
Securing Charter Status for 2025
The court’s decision to grant the preliminary injunction does not signify victory in the larger antitrust case but ensures that 23XI Racing and FRM can operate as chartered teams in 2025. This step is critical for securing the future of their drivers, sponsors, and staff, allowing the teams to focus on the antitrust case next year. NASCAR had initially tried to delay proceedings, hoping to exert pressure on the teams. However, the recent injunction has forced NASCAR to shift tactics, with the sanctioning body now seeking a hearing as early as Friday.
The court’s ruling also granted the two teams permission to utilize the charters they acquired from the now-defunct Stewart-Haas Racing (SHR). This has added to NASCAR’s frustration, as the organization now claims it will suffer irreparable harm if the injunction remains in place.
NASCAR’s Response and Concerns
NASCAR has gone on the defensive, arguing that granting charter status to 23XI Racing and FRM undermines their efforts to plan the 2025 Cup Series with 32 chartered teams. The organization contends that sponsors and drivers could invoke opt-out clauses if a team lacks a charter, nullifying the claim of irreparable harm to the teams. Reports also indicated that drivers Tyler Reddick and Bubba Wallace were exploring other opportunities due to the legal dispute.
Additionally, NASCAR is concerned about being forced to disclose sensitive information, which could weaken its position in the antitrust case. The organization painted a dire picture of the potential fallout, stating, “This Court’s order permitting Plaintiffs to race under the 2025 Charter terms will inflict irreparable harm on NASCAR. For example, it requires NASCAR to disclose confidential information to plaintiffs—an action that is inherently irreparable.”
While NASCAR has expressed a willingness to provide financial assistance if the teams prevail in the antitrust case, Hamlin and Jordan are unlikely to accept such a settlement given their recent legal victory.