Denny Hamlin, co-owner of 23XI Racing alongside retired NBA legend Michael Jordan, remains optimistic about the antitrust lawsuit filed against NASCAR by his team and Front Row Motorsports, despite recent developments that could potentially overturn an injunction allowing the teams to compete as chartered entries.
Speaking at Kansas Speedway on the weekend, Hamlin addressed the situation, stating, “You know, they’re telling me kind of what’s going on. I didn’t get to hear it live or anything like that. But we’re overall pretty confident in our case.”
The lawsuit, filed on October 2 in the Western District of North Carolina, alleges that NASCAR coerced teams into signing charter agreements, essentially franchise deals, that make it financially challenging to compete. 23XI Racing and Front Row Motorsports were the only two holdouts among the 15 charter-holding teams that refused to sign the agreements in September.
The current extension of the charters runs until 2031, coinciding with the existing media rights deal. One of the most significant advantages of these charters is that they guarantee 36 of the 40 available spots in each NASCAR race to the teams that possess them.
If the injunction were to be overturned, 23XI and Front Row would be forced to compete as “open teams,” meaning they would have to qualify for every Cup Series event. With only four open spots available and 23XI fielding four cars at Kansas this week – driven by Bubba Wallace, Riley Herbst, Tyler Reddick, and Corey Heim – and Front Row entering three cars with Noah Gragson, Zane Smith, and Todd Gilliland, the implications could be significant.
“You know, the judges haven’t made any kind of ruling,” Hamlin noted. “So until they do, then we’re going to stay status quo.”
During the hearing, NASCAR attorney Chris Yates argued that the injunction, granted by U.S. District Judge Kenneth Bell in December, compelled the series into an unwanted relationship with unwilling partners and harmed other teams by reducing their earnings. He also contended that the teams should not benefit from the charter system they are suing to overturn.
In response, Jeffrey Kessler, the attorney representing 23XI and Front Row, emphasized the lack of alternative competition options and the potential for tremendous damage to the teams if the injunction were overturned, including the possible loss of drivers and sponsors.
“It will cause havoc to overturn this injunction in the middle of the season,” Kessler argued.
With a trial date set for December, judge Steven Agee encouraged the parties to engage in mediation, as previously ordered by a lower court, in an attempt to resolve the dispute over the injunction. However, a resolution seems unlikely, with Yates stating, “We’re not going to rewrite the charter.”
