Why Michael Jordan & Co. pushed NASCAR to revise a key clause in the open team agreement? All you need to know
Amid the ongoing legal battle, Michael Jordan's 23XI Racing and Front Row Motorsports recently announced that NASCAR has removed the anticompetitive release requirements, thus allowing the teams to pursue the antitrust lawsuit and compete as an open-chartered team in the 2025 season.
While the federal judge denied them a preliminary injunction to run as chartered teams during the period that the lawsuit continues, both the Cup Series teams have appealed the denial of the injunction. Moreover, the teams required an injunction to either run as open teams or to argue a clause releasing NASCAR from certain legal claims.
In a recent statement, Jeffrey Kessler, the attorney for 23XI Racing and Front Row Motorsports, announced that a clause allowing teams to sign as open teams has been removed from open agreements. This development will enable the teams to continue their legal battle against NASCAR while operating as open teams.
23XI Racing's post on X (formerly Twitter) stated:
"We are pleased to announce that NASCAR has removed the anticompetitive release requirements in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025. [...} My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams therefore avoiding irreparable harm,” Kessler said. “Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all," wrote Kessler.
On the other hand, if this was not the case, NBA icon Jordan and Denny Hamlin-owned 23XI and FRM would have been left with only two options, as reported by Bob Pockrass.
"This means 23XI and Front Row will at least be open cars in 2025. Without this move, the teams had two choices: 1) sign the open agreement to race while risking that the previous legal claims release clause would be considered valid, which would dismiss lawsuit. Or 2) not race," Pockrass wrote on X.
"Irreparable harm has already begun" : Michael Jordan's 23XI Racing and Front Row Motorsports cite in their appeal of denied preliminary injuction
23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR in September after missing the charter deadline imposed by the sanctioning body. The lawsuit alleged that NASCAR's practices are monopolistic.
Following a recent court hearing, a judge ruled in favor of NASCAR, denying the teams' request for a preliminary injunction that would have allowed them to retain their charters for the 2025 season. As a result, 23XI Racing and Front Row Motorsports have appealed the decision.
In a post on X, Fox Sports' Bob Pockrass shared the filing of the appeal report as cited by 23XI and FRM.
"In filing, 23XI/FRM:"Irreparable harm has already begun because Appellants cannot assure sponsors, drivers, and fans that they will be able to compete as chartered teams in 2025-a condition that puts those critical relationships with sponsors, drivers, and fans at immediate risk," Pockrass wrote on X.
23XI Racing and Front Row Motorsports have proposed December 10-13 as the dates for the expedition and oral argument in their appeal against NASCAR.