Live Report: Michael Jordan’s 23XI Racing Scores Major Legal Victory, Sets Stage for NASCAR’s Future
The NASCAR off-season has been anything but quiet this year, with a courtroom battle keeping fans on the edge of their seats. The high-stakes legal dispute between 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and NASCAR has finally reached a pivotal moment. After months of twists and turns, a district court ruling has given 23XI Racing the upper hand, paving the way for monumental changes in the sport—and securing a bright future for Riley Herbst.
A Small Win, but a Long Road Ahead
On December 26, 2024, the district court approved a critical agreement allowing 23XI Racing to take over a long-contested charter from Stewart-Haas Racing (SHR). This move bolsters the team’s expansion plans and strengthens their position in an ongoing antitrust lawsuit against NASCAR. Fox journalist Bob Pockrass broke the news on X (formerly Twitter), stating:
“District court judge has formally OK’d agreement. NASCAR has agreed to an injunction for SHR charter transfer to 23XI and 23XI agreed it won’t use the fact NASCAR agreed to it as an argument on appeal. This now allows appeal process to start on injunction rulings.”
This ruling gives 23XI Racing the green light to expand their Cup Series operations to three cars in 2025, a goal Michael Jordan and Denny Hamlin have been striving toward for months. It’s a significant step in what has been a rollercoaster legal battle, with earlier setbacks including the rejection of a preliminary injunction and uncertainty about operating as an open team.
While this is not the final victory in the lawsuit, it marks a turning point for 23XI Racing and secures critical resources for their future, particularly for their newest driver, Riley Herbst.
Riley Herbst: A Gamble That Paid Off
Back in November, 23XI announced the signing of Riley Herbst as their third Cup Series driver for 2025, despite uncertainty surrounding their charter status. Herbst, who spent four years with SHR in the Xfinity Series, racked up 3 wins, 30 top-5 finishes, and 65 top-10 finishes during his tenure. Now, thanks to the court’s ruling, he will drive the No. 35 Monster Energy Toyota Camry XSE alongside teammates Tyler Reddick and Bubba Wallace.
The 25-year-old driver had been staring at the possibility of running as an open driver, but the acquisition of the SHR charter ensures his spot on the grid for every race in 2025. This stability is a game-changer for Herbst, as it opens doors for better sponsorship deals, endorsement opportunities, and long-term growth within the Cup Series.
For 23XI Racing, the ruling means a larger share of purse money revenue—a critical factor in sustaining and growing their operations.
Implications Beyond 23XI Racing
This court decision doesn’t just benefit 23XI Racing; it could reshape NASCAR’s entire competitive landscape. The antitrust lawsuit filed by 23XI and Front Row Motorsports challenges the charter system and NASCAR’s control over team operations. While the final verdict is still pending, this ruling forces NASCAR to reconsider its policies on charter transfers and team autonomy.
By allowing mid-tier teams like 23XI to expand, the decision promotes competition and reduces the dominance of powerhouses like Penske Racing and Hendrick Motorsports. This shift could attract new talent, encourage more teams to enter the sport, and increase fan engagement.
The lawsuit also sets a precedent for other teams to stand up for their rights, potentially holding NASCAR more accountable for its policies. As the antitrust case unfolds, the stakes for the future of NASCAR have never been higher.
What’s Next?
With this victory, Michael Jordan and 23XI Racing head into 2025 on solid ground, ready to field a stronger team and continue their legal battle. Meanwhile, fans eagerly await the antitrust proceedings, which could redefine how NASCAR operates.
As the dust settles on this phase of the lawsuit, one thing is clear: the legal and competitive landscape of NASCAR is evolving rapidly. For now, though, Riley Herbst can breathe a sigh of relief, and 23XI Racing is poised to make a lasting impact on the sport.
