The tension between NASCAR and 23XI Racing continues to boil over. Ever since Michael Jordan and Denny Hamlin, co-owners of 23XI Racing, took NASCAR to court over alleged “monopolistic practices,” the relationship between the two parties has been on shaky ground. NASCAR, long dominated by the France family, isn’t known for tolerating challenges to its authority, and the rebellion from 23XI Racing has clearly ruffled feathers within the sport’s hierarchy.
Amid this legal saga, NASCAR president Steve Phelps has made what seems to be a subtle, yet pointed, jab at 23XI Racing. With the court battle taking more twists than a NASCAR road course, an exchange of words was almost inevitable.
Steve Phelps Reflects on 2024’s Highlights
It’s undeniable that 23XI Racing has made a significant impact on NASCAR since its inception. Thanks to Michael Jordan’s financial backing and star power, combined with Denny Hamlin’s racing expertise, the team has experienced a meteoric rise. Their technical alliance with Joe Gibbs Racing only accelerated their growth. This hard work culminated in a landmark achievement in 2024 when Tyler Reddick secured the regular season championship and reached the Championship 4 at Phoenix Raceway—a remarkable feat for a team that’s only been competing since 2020.
When speaking to The Athletic, Steve Phelps didn’t shy away from acknowledging 23XI’s success. He remarked:
“The close finishes, that was really cool. The continued schedule innovation, I think our fans have come to expect that, and you’ll see that again in ’25. It’s pretty cool that 23XI competed for a championship so soon in their life cycle of being a race team. And one of the things I’m most proud of is, if you look at the (TV) ratings, we started off minus-27 (percent) and somehow we finished in the positive numbers from a viewership standpoint. I think that is a testament for the strength of the fan base and where the sport is and the popularity of the sport.”
While this may seem like a harmless observation, it’s hard to ignore the potential subtext. Could Phelps be subtly reminding 23XI Racing of the benefits they’ve reaped from NASCAR’s charter system and existing structure—the very things they’re now challenging in court? It’s speculative, but the timing and context of his remarks are certainly curious.
23XI Racing’s Battle Over Charters Intensifies
The friction stems from 23XI Racing and Front Row Motorsports’ refusal to sign NASCAR’s proposed charter agreement. The teams claim they were pressured into agreeing to terms under the threat of losing their charters in 2025. The revised agreement offered better financial terms for the 13 teams that signed, but 23XI and FRM held out, arguing that the deal perpetuates a monopolistic structure. The ongoing lawsuit reflects their broader frustrations with the system.
After losing their initial bid for a preliminary injunction to retain their charters, 23XI Racing and Front Row Motorsports regrouped and filed a second injunction, armed with new evidence. This move didn’t sit well with NASCAR. The sanctioning body, through their lead attorney Christopher Yates, issued a scathing response:
“A month ago, the Court denied Plaintiffs’ first Motion, characterizing their claimed harm as ‘speculative’ and ‘possible,’ but not ‘immediate’ or ‘irreparable.’ After seeking and then dismissing an expedited appeal, Plaintiffs now claim ‘changed circumstances’ to try to overcome this ruling. Yet, even with their manufactured evidence, Plaintiffs still fall far short of a clear showing of irreparable harm.”
Yates continued, taking aim at 23XI and FRM’s legal strategy:
“Plaintiffs cannot manufacture a crisis by filing a lawsuit and then demanding relief from its consequences—that is just as inequitable as it is self-inflicted. And to the extent sponsor concerns are driven by the fact that Plaintiffs could fail to qualify for a race, such concerns are, as this Court already held, speculative.”
What’s Next for 23XI Racing?
For Michael Jordan and Denny Hamlin, this legal battle is about more than just charters—it’s about challenging the status quo in a sport long controlled by NASCAR’s governing body. Retaining their charters would be a significant win, sparing the teams the financial burden of competing as open entries while ensuring their participation in key races next season.
The legal drama will likely drag on, with attorney Jeffrey Kessler tasked with proving irreparable harm to 23XI and FRM in court. Whether this uphill battle pays off remains to be seen, but one thing is certain: the tension between 23XI Racing and NASCAR shows no signs of easing anytime soon.
Only time will tell if the plaintiffs can turn the tide in their favor, or if NASCAR’s iron fist will once again prove unyielding.
