23XI Racing has officially committed to joining the 2025 NASCAR season amid ongoing legal challenges that accuse the sport of unfair practices in charter negotiations. Co-owned by NBA legend Michael Jordan and NASCAR champion Denny Hamlin, 23XI Racing’s decision comes at a critical time. Alongside Front Row Motorsports, the team has decided to compete as open teams while pursuing an appeal to operate as chartered teams.
23XI Racing’s legal battle with NASCAR started with an antitrust lawsuit filed on October 2 earlier this year. This lawsuit points to NASCAR’s charter agreement terms as monopolistic and detrimental to competitive equity in the sport. Both 23XI and Front Row are battling for the right to race without signing an agreement, which they argue limits their competitive and operational freedoms.
“We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which now allows 23XI and Front Row Motorsports to race as open teams in 2025,” said Jeffrey Kessler, the attorney for both teams.
Michael Jordan and Denny Hamlin established 23XI Racing in 2020, debuting in the 2021 Daytona 500 with Bubba Wallace. Wallace’s historic win later that year began the team’s rapid rise. The team continued by expanding to a two-car team, with Kurt Busch and later Tyler Reddick joining the ranks. Reddick has proven to be a strong member of 23XI Racing.
The legal implications of the charter disagreement are a central concern. By operating as open teams, 23XI and Front Row can sidestep clauses that would quash their lawsuit. This move also allows them to continue their advocacy for a fair racing environment. According to Kessler, “My clients will continue their appeal to the 4th 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 participants in this sport that they love while fighting to make it fair and just for all.”
This ongoing appeal seeks to address what the teams describe as an anticompetitive stronghold by NASCAR.
Following a mildly successful 2024 season, Reddick comes out optimistic.
“Good year for us. Proud of the effort. All the preparation, all the work that goes into this, it takes everybody and we were close, we were just not quite good enough, unfortunately.”
Tyler Reddick is willing to persevere. “We fought really hard. A lot to be proud of it, but obviously when you come here you want to leave a champion. So we’ll work on it and think about what we can do in the off-season to get better here.”
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