Denny Hamlin, Michael Jordan, and 23XI Racing Celebrate a Legal Victory—But Will It Hold?
In a significant early 2025 win for Denny Hamlin, Michael Jordan, and the teams at 23XI Racing and Front Row Motorsports, a U.S. District Court ruling has given the green light for both organizations to retain their existing Cup Series charters and claim an additional one. But the question remains: Will this ruling stand?
The Ruling
On Wednesday, Judge Kenneth D. Bell delivered a pivotal decision, supporting the race teams’ right to hold onto their two existing Cup Series charters and secure a third, which they purchased from the now-closed operations at Stewart-Haas Racing.
This ruling is a major victory for 23XI Racing, co-owned by Hamlin, Jordan, and Curtis Polk, as well as for Front Row Motorsports, owned by Bob Jenkins. However, NASCAR has the right to challenge the decision by appealing to the U.S. Court of Appeals, though it has not yet announced if it will do so.
A Charter Controversy
The NASCAR Cup Series operates with 36 charters, effectively franchise slots that guarantee starting positions in every race throughout the season. Each team can own up to four charters, which also entitle them to a share of the multi-billion-dollar revenues from media rights deals and other guaranteed prize funds.
Teams without charters can still compete as “open” teams, but they miss out on equal prize fund distribution and other financial guarantees. The battle for these valuable charters has intensified, with 23XI Racing and Front Row Motorsports refusing to sign a new working agreement with NASCAR late in the 2024 season, citing dissatisfaction over revenue-sharing terms.
23XI and Front Row’s Current Standing
23XI Racing, known for fielding cars driven by Bubba Wallace and Tyler Reddick, has been a rising force in NASCAR under the leadership of Hamlin and Jordan. Meanwhile, Front Row Motorsports has made its mark with drivers like Michael McDowell and Todd Gilliland in recent years. However, for the 2025 season, Noah Gragson will replace McDowell in Front Row’s lineup.
This legal battle could reshape the Cup Series’ landscape, particularly if NASCAR’s appeal stretches into the next few seasons.
What’s Next?
While this ruling is a win for the two teams, it’s not the final lap in this legal race. The judge has called for a “case management schedule” to ensure the legal proceedings conclude before the start of the 2026 season—unless all parties reach a settlement beforehand.
For now, Hamlin, Jordan, and Jenkins can savor their victory, but the possibility of further appeals means the fight over NASCAR’s charter system is far from over.
