Retired NBA legend Michael Jordan and the owners of two NASCAR teams appeared in federal court for a hearing regarding their antitrust dispute with the stock car series. The lawsuit, filed by 23XI Racing and Front Row Motorsports, challenges NASCAR's charter system, which the teams claim restricts competition and unfairly binds them to the series, its tracks, and suppliers.
The teams are seeking a temporary injunction to compete without the contested clause while the lawsuit is ongoing. NASCAR has rescinded the charter agreements offered to the teams in September. The court is expected to decide on the preliminary injunction request by Friday.
The dispute comes as NASCAR gears up for its championship weekend, with the title-deciding race set for Sunday in Phoenix. The teams argue that NASCAR's refusal to grant the injunction would have severe consequences, potentially putting them out of business and causing drivers to leave.
The charter system, in place since 2016, has been extended twice, with 13 organizations signing deals to run from 2025 through 2031. NASCAR's representation argued that the teams have alternatives outside of NASCAR and disputed claims of coercion in signing the charter agreements.
The court hearing was attended by key figures from the teams, including Michael Jordan, Denny Hamlin, and team executives. The teams maintain that NASCAR's proposed changes could have detrimental effects on their operations and competitiveness.
NASCAR plans to have 32 chartered teams and eight open cars in its 40-car field each week, with the two teams in question currently holding two charters each. The teams have deals to buy additional charters, but NASCAR has indicated it will only recognize the 32 agreements signed in September.
The court's decision on the injunction request will have significant implications for the future of the teams and NASCAR's operations moving forward.
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