Fourth Circuit Questions NASCAR Antitrust Injunction in Jordan-Owned Teams' Lawsuit

A federal appeals court panel expressed skepticism regarding the preliminary injunction allowing Michael Jordan’s 23XI Racing and Front Row Motorsports to compete as charter teams in NASCAR’s 2025 season, despite refusing to sign new charter agreements. The injunction, granted by a lower court, forced NASCAR to treat these two teams as chartered members without the usual litigation release clause, which NASCAR argues is standard business practice and not anti-competitive conduct. Judge Paul Niemeyer emphasized that a party cannot simultaneously reject a contract and seek its benefits, stating, "You can’t have your cake and eat it too." NASCAR's counsel argued that the charter agreements resulted from extensive negotiations and that if NASCAR wins the appeal, the teams can still compete as open teams by qualifying for each race. The court encouraged both sides to engage in mediation ahead of a trial set for December 1, with the judges focusing mainly on the legal implications of the release clause rather than the broader antitrust claims. The outcome of this appeal could significantly impact how NASCAR manages its charter system and antitrust allegations moving forward.