Michael Jordan-Owned NASCAR Teams Face Charter Sale, Potential Closure

Michael Jordan's NASCAR team, 23XI Racing, along with Front Row Motorsports (FRM), are embroiled in a legal battle with NASCAR over the status and sale of racing charters, which guarantee guaranteed starting spots and financial benefits in races. Both teams refused to sign NASCAR's latest charter agreement due to a clause preventing lawsuits and subsequently filed an antitrust lawsuit, initially winning a preliminary injunction allowing them to race with charter benefits. However, this injunction was overturned on appeal, forcing the teams to compete as open entries without charter benefits, negatively impacting their profitability and sponsorships. NASCAR has announced plans to transfer at least one charter previously held by 23XI or FRM to another team for the 2026 season, prompting further court hearings as 23XI and FRM seek to block this transfer until the lawsuit concludes. The teams argue that NASCAR's actions maintain monopsony power and are anticompetitive, while NASCAR maintains its position and seeks to reclaim charter fees paid to the teams. The case is headed toward a trial scheduled for December, with a critical hearing imminent, highlighting the high stakes for the involved teams, including 23XI Racing, which was founded by Michael Jordan.