Federal Appeals Court Blocks Michael Jordan NASCAR Charter Bid

A U.S. Court of Appeals for the Fourth Circuit ruled against Michael Jordan’s 23XI Racing and Front Row Motorsports in their antitrust lawsuit challenging NASCAR’s charter system, overturning a previous injunction that had allowed them to race as charter teams without releasing claims. The appellate court found no legal precedent supporting the claim that NASCAR’s requirement of a release clause in charter agreements was anticompetitive, labeling the lower court’s injunction an abuse of discretion. The ruling allows NASCAR to strip the charters—valued in the tens of millions of dollars—from 23XI and Front Row, forcing them to compete as open teams with no guaranteed race entries and significantly reduced earnings. Despite this setback, the teams plan to continue their legal fight, with a trial scheduled for December, asserting their commitment to creating a fair economic system in stock car racing. The court emphasized that businesses can legally set their contract terms absent anticompetitive conduct, and the charter release clause is a standard provision covering potential claims. The decision marks a major victory for NASCAR, affirming its current business model and charter system.