CHARLOTTE — The rancor between NASCAR and two teams suing it intensified in federal court during a Thursday hearing, and 23XI Racing co-owner Michael Jordan stated afterward that “if I have to fight this to the end for the betterment of the sport, I will do that.”
Thursday’s hearing in U.S. District Court focused on if 23XI Racing and Front Row Motorsports should have the status of charter teams for the rest of the season even though they didn’t sign the charter agreement last year.
But ominous warnings from Judge Kenneth D. Bell, acrimonious text messages and possibility of a reimagined NASCAR if the teams win provided underlying currents in a case that is building toward a Dec. 1 trial with no settlement in sight.
Judge Bell said a decision on the preliminary injunction would come next week but encouraged the two sides to find a working agreement.
Thursday’s hearing took place in a crowded courtroom that included 23XI Racing co-owners Denny Hamlin, Curtis Polk and Jordan, Front Row Motorsports owner Bob Jenkins and NASCAR executives Jim France and Lesa France Kennedy.
The teams seek a preliminary injunction to have charter status and prevent NASCAR from selling their charters to other groups. NASCAR stated in court documents Monday an intent to issue one of the disputed charters to another group if the preliminary injunction is denied. In court, NASCAR attorney Christopher Yates noted private equity interest in the sport and its charters.
A look at the 16 Cup playoff drivers, key facts and a key question for each as NASCAR’s postseason begins this weekend at Darlington Raceway.
Without charter status, 23XI Racing and Front Row Motorsports attorney Jeffrey Kessler said the drivers for both teams “can give notice that (they) are in breach” of their contract. 23XI Racing employs playoff drivers Bubba Wallace and Tyler Reddick, along with rookie Riley Herbst. Front Row Motorsports employs Zane Smith, Todd Gilliland and Noah Gragson.
Throughout the hearing, Judge Bell asked several questions of both sides and also projected what could happen in the trial, noting “If the plaintiffs (23XI Racing and Front Row Motorsports) prevail, NASCAR is going to look very different.”
Yates told the judge that “if we have to go back to pre-charter (days), we will.”
The playoffs will open at “The Track Too Tough to Tame.”
Charters have been in place since 2016. NASCAR granted 36 to teams, which guarantee entry for each race and provide guaranteed payments.
The charters were extended through 2024.
NASCAR produced a note from Hamlin dated May 1, 2024, where he stated: “In short, im (sic) in for the fight with NASCAR. My despise of the France family runs deep, but whatever we do, please lets (sic) not sabotage our own business over principle when it comes down to it.”
USA Network will have coverage from Darlington Raceway beginning at 5:30 p.m. ET Sunday.
After more than two years of negotiations,13 of the 15 Cup teams signed the charter agreement last September. The new agreements began this year and go through 2031.
NASCAR produced text messages from Jordan that expressed disgust after finding out fellow Toyota team Joe Gibbs Racing signed the charter. NASCAR also produced a text message from Jordan after being informed other teams had signed. Part of the text from Jordan read: “Teams are going to regret not supporting us.”
Kessler chastised Yates in court for “attacking Mr. Polk and Mr. Jordan.”
23XI Racing and Front Row Motorsports also produced texts from NASCAR executives that the teams suggested showed NASCAR was dictating preferential terms. NASCAR challenged that notion.
During the hearing, Judge Bell reminded both sides the peril of a jury trial, encouraging them to settle.
“If either party feels certain you’re going to win, you’re wrong,” he said.
Yates, the NASCAR attorney, later said in court that he trusted juries because “juries go by common sense.”
Jordan, meeting with reporters outside the courthouse, said: “Look, I’ve been a fan of the game for a long period of time. When we first started this whole process, I’ve alway said that I want to fight for the betterment of the sport, even though they try to point out that we made some money or we had a successful business, that’s not the point.
“The point is that the sport itself needs to continually change for the fans as well as the teams, as well as for NASCAR, too If they understand that. I feel we made a good statement about that today.
“I look forward to going down, fine. If I have to fight this to the end for the betterment of the sport, I will do that.”
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