Michael Jordan and his team owners are heading to federal court for a hearing in the antitrust dispute against NASCAR

CHARLOTTE, North Carolina – Retired NBA star Michael Jordan and his co-owners of two NASCAR teams headed to a federal court hearing Monday in their antitrust battle against the stock car series over what they say is an unfair business model.

23XI Racing, owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by restaurant entrepreneur Bob Jenkins, sued NASCAR and Chairman Jim France in October after months of tense negotiations over NASCAR's charter system, essentially a franchise -Model that includes revenue sharing.

The two teams say NASCAR made a last-minute, take-it-or-leave-it offer to all Cup Series teams in September that both 23XI and Front Row refused to sign. The owners claim the charter system limits competition by unfairly tying teams to the series, its tracks and its suppliers, and they call the French family and NASCAR “monopolistic tyrants.”

The two teams are represented by Jeffrey Kessler, the country's top antitrust lawyer, who has repeatedly argued that they are only seeking an injunction that would allow them to compete without the clause that would bar their ongoing lawsuit.

He said NASCAR has since withdrawn the charter contracts offered in September 23XI and FRM.

“We are not questioning the entire charter agreement. “We want a return to the status quo,” said Kessler. “We are not looking for a dispute lasting seven to 14 years. Let us operate on the terms they offer for the duration of the (court) case and operate under the charter conditions for the duration of the case.”

Kessler said NASCAR is fighting the injunction because NASCAR doesn't believe there is a winning case.

The battle continues as NASCAR heads into its championship weekend. The title-deciding race takes place in Phoenix on Sunday, with 23XI Racing's Tyler Reddick among the four drivers in line to win.

After a nearly two-hour hearing, U.S. District Judge Frank D. Whitney said he would make a decision by Friday on 23XI and FRM's request for a preliminary injunction to be recognized as chartered teams in 2025 – when the cars will arrive in Phoenix track to begin preparations for the title-deciding race.

Jordan listened to Kessler's arguments from the front row of the gallery and leaned forward intently throughout the NASCAR case in court.

In brief comments outside court, Jordan said he did not believe the litigation would affect 23XI's efforts to win the championship with Reddick.

“No, I have been in situations of inequality. “I think the race team will be focused on what they have to do this weekend and that’s what I expect from them,” Jordan said. “I think Jeffrey did an incredible job today and I think I put all my cards on the table. I’m looking forward to winning a championship this weekend.”

At issue before the court is 23XI and FRM's request to be released from a clause in NASCAR's agreement that prohibits teams from suing the sanctioning body. Both teams have said they will operate as “open” teams in 2025 unless they receive the injunction, but even that agreement prevents them from suing NASCAR.

Additionally, an “open” team is not guaranteed a spot in the weekly 40-car field, does not receive the same revenue as chartered teams, and its drivers and sponsors could potentially leave the team because of their association with unprotected chartered teams.

The charter system began in 2016 and has now been extended twice, with contracts signed by 13 organizations running from 2025 to 2031.

Christopher Yates of Latham & Watkins LLP represented NASCAR and France. He said the teams have plenty of opportunities outside of NASCAR.

“Mr. Jordan had a choice: They could invest in NASCAR, IndyCar or buy another NBA team,” Yates said, “but they chose to invest in NASCAR.”

Yates also disputed the notion that the 13 teams that signed the charter contracts 48 hours before the playoffs began in September did so under duress, but he used slides in which he cherry-picked quotes and left out the parts where the owners disagreed Admitting to reporters that NASCAR had threatened that it would derail the entire charter process if signed contracts were not received within a short period of time.

“We're talking about Roger Penske, Rick Hendrick and Joe Gibbs – people who won't let themselves be pushed around,” Yates said.

Kessler called Yates' summary a “complete distortion” of the facts.

Kessler also argued that the terms of the new bylaws could potentially put the two teams out of business and result in Reddick leaving 23XI even if he wins the championship on Sunday.

“We have a potential champion that could leave and we would never get back,” Kessler said. “This could put these teams out of business. You can’t go to a stock car team and ask them to become a Formula 1 team.”

Whitney last week denied an expedited discovery request from 23XI and Front Row requiring NASCAR to produce documents ahead of Monday's injunction hearing.

“While the proposed discovery requests may help plaintiffs demonstrate a likelihood of success on the merits, they are not tailored narrowly enough,” Whitney wrote.

Joining 23XI's Jordan, Hamlin and Curtis Polk, Jenkins and Front Row President Jerry Freeze attended the hearing, which is crucial to the rest of the two teams' next season.

The teams argue that NASCAR would not be harmed by the injunction because the series had planned to have 36 chartered teams, and allowing them to compete as chartered teams while the lawsuit proceeds would maintain the status quo.

NASCAR now says it plans to field 32 chartered teams and eight open cars (instead of four) in its 40-car field each week. Front Row and 23XI each currently have two charter contracts that they have not signed, and both have contracts with Stewart-Haas Racing to purchase a charter contract each.

Those deals have not been completed and NASCAR has indicated it will not honor the sales. NASCAR maintains that it is only honoring the 32 charter agreements signed in September.

NASCAR contends that the two teams do not qualify for an injunction because they can still compete as open teams and that any damages they suffer if they prevail in the case can be financially recovered.

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