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U.S. Court Of Appeals Announces Ruling On NASCAR, 23XI Racing Lawsuit

Originally posted on The Spun | By Tzvi Machlin | Last updated Jun 5, 2025 1:07 PM ET

In a decision that could have major implications for the 2025 NASCAR season and beyond, the U.S. Court of Appeals made a key ruling in the ongoing lawsuit between NASCAR and Michael Jordan's 23XI Racing team.

23XI Racing and Front Row Motorsports are suing NASCAR and NASCAR executive James France over their charter status with the racing organization. They received an injunction to allow them to continuing racing in NASCAR as chartered teams in 2025. But today the two racing teams received some rather unwelcome news from the court.

On Thursday, the Fourth Circuit court announced that three prior injunctions from the district court have been vacated with the ruling taking effect upon issuance.

"In accordance with the decision of this court, the district court injunctions entered December 18, December 23, and December 26, 2024 are hereby vacated," the judgement stated.

"This judgement shall take effect upon issuance of this court's mandate..."

23XI Racing team owner Michael Jordan during qualifying for the Cup Series championship race at Phoenix Raceway.Mandatory Credit: Gary A. Vasquez-Imagn Images

According to NASCAR insider Jeff Gluck, both 23XI and Front Row Motorsports are now primed to lose their charters and may have to race as open teams.

"Major NASCAR lawsuit news: The preliminary injunction that allowed 23XI and FRM to race as chartered teams has been overturned by a federal appeals court. The teams could now lose their charters (both existing and the ones they got from SHR) and race as open teams," Gluck wrote on X.

Major NASCAR lawsuit news: The preliminary injunction that allowed 23XI and FRM to race as chartered teams has been overturned by a federal appeals court. The teams could now lose their charters (both existing and the ones they got from SHR) and race as open teams.
— Jeff Gluck (@jeff_gluck) June 5, 2025

All is not lost though. FOX NASCAR insider Bob Pockrass noted after the ruling was announced that the teams have a 14-day period to request the case to be heard by the entirety of the seven-person appeals court rather than the three judges who heard it initially. He also pointed out that the ruling won't go into effect for another seven days after that 14-day period.

"So the teams get 14 days to ask for the case to be heard by the entire appeals court judges (instead of just the three judges who heard the case initially). The ruling today wouldn't go into effect until 7 days after that deadline passes at the earliest," Pockrass explained.

So the teams get 14 days to ask for the case to be heard by the entire appeals court judges (instead of just the three judges who heard the case initially). The ruling today wouldn't go into effect until 7 days after that deadline passes at the earliest. https://t.co/1h0p53zqRP
— Bob Pockrass (@bobpockrass) June 5, 2025

Even so, it's a pretty devastating blow to 23XI Racing and Front Row Motorsports. They were always in for an uphill climb, but we may be nearing the end of their time as chartered NASCAR teams.

This article first appeared on The Spun and was syndicated with permission.

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