Antitrust lawsuit continues between NASCAR and Michael Jordan's team. Will 23XI race in Clash?

CHARLOTTE, N.C. — 23XI Racing, the NASCAR team owned by Michael Jordan, now has three cars in the sport’s highest circuit.

But while young driver Riley Herbst has been announced as the newest teammate of regular-season champion Tyler Reddick and Bubba Wallace, it remains up in the air if these up-and-coming race teams will compete as official “charters” in the Cup Series.

The next NASCAR season opens in Winston-Salem on Feb. 2, 2025, with the Clash at Bowman Gray Stadium, the exhibition race in which only chartered teams are required to participate. Recently, these teams — Front Row Motorsports joined 23XI in suing NASCAR — said they would be able to compete as “open” teams throughout the 2025 season.

But would open teams still enter the traditionally chartered-teams-only preseason race?

“Things are so fluid, over the next few weeks we’ll probably know more, and I’m sorry about that,” 23XI co-owner Denny Hamlin said. “The Clash is always a good repetition. It’s a rep. Certainly one where even though you don’t have pit crews there, it’s good for the teams to work some kinks out. But also: You’re probably going to go there and tear up a lot of stuff.

”So, I don’t know. We’ll see.”

23XI and Front Row filed an antitrust lawsuit in federal court on Oct. 2 in Charlotte, against NASCAR and chairman Jim France. They were the only two teams that refused to sign the final offer of the new charter agreement, and they’re hoping to increase the revenue and influence of the sport’s teams with this lawsuit.

On Tuesday, the teams filed a renewed motion for preliminary injunction, citing imminent irreparable harm. NASCAR is expected to respond to the lawsuit by Dec. 9.

“Consistent with Judge (Frank D.) Whitney’s earlier ruling, 23XI and Front Row Motorsports are submitting a second preliminary injunction to the court with new evidence,” Jeffrey Kessler, the lead attorney representing 23XI and Front Row, said in a statement.

“My clients are also seeking this relief to strike down the release language that NASCAR removed from its open agreements but still maintains in its charter agreements as part of its monopolistic control. I’m confident the court will act to protect my clients from NASCAR’s anticompetitive conduct.”

Expect 23XI Racing to compete in 2025, but Clash is uncertain

The lawsuit is ongoing, but one aspect has become clear: The teams suing NASCAR will race in 2025.

Kessler said in a statement last Saturday that NASCAR determined these teams will be able to compete as open teams, which would mean they would not be guaranteed entry into every race, nor a consistent monetary payout from wins.

“We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025,” Kessler said in the statement.

“My clients will continue their appeal to the Fourth Circuit to issue an injunction so that they can run as chartered teams therefore avoiding irreparable harm. Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”

What are 'charters' in NASCAR?

Next year’s season will be the 10th since NASCAR implemented its charter system.

The sport’s ownership charters are intended to operate similarly to franchises in other leagues. Each of the 36 full-time car numbers is like a professional sports team, guaranteeing entry into every Cup Series race and securing higher purses for winning races.

There is immense competitive risk in racing as open teams. If more than 40 teams enter an event like the Coca-Cola 600 — which had a packed field of 40 cars in May — full-time drivers would have to qualify their way into the race, which could result in perennial contenders like Reddick and Wallace missing starts.

Three competitors will drive for 23XI Racing in 2025

Herbst, 25, will be among two rookies in the 2025 Cup Series field.

The Las Vegas native who’s been racing in Xfinity for the past six years will now pilot the No. 35 Toyota Camry full-time Cup ride for 23XI. Herbst recorded another standout season in NASCAR’s second-tier circuit, even winning the championship race at Phoenix in Stewart-Haas Racing’s final Xfinity start.

Herbst will be alongside Shane Van Gisbergen (who will drive the No. 88 Chevy) as new full-time rookies in the Cup Series garage next season, as Trackhouse Racing is expanding to three charters as well.

Hamlin has been impressed with Herbst throughout his career but knew it may take longer for him to reach the Cup Series level. Herbst made the Xfinity playoffs in each of his past five seasons, finishing in a career-best seventh place in the series after taking the final checkered flag.

“When Tyler (Reddick) came in, it quickly gave Bubba (Wallace) a measuring stick,” Hamlin said. “When Riley comes in, he’s going to have two data points. And we’re gonna be patient with him, understanding that this jump from Saturday to Sunday is a really big one.”