CHARLOTTE, N.C. (AP) — A three-judge federal appellate panel ruled Thursday in favor of NASCAR in the antitrust lawsuit filed by two teams, one owned by Michael Jordan, and vacated an injunction that required 23XI and Front Row be recognized as chartered teams as their case snakes through the legal system.
Both race teams sued NASCAR late last year after refusing to sign new agreements on charter renewals. The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates. 23XI, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, allied with Front Row in suing NASCAR after 13 other organizations signed the renewals last September and those two organization refused.
“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps," said Jeffery Kessler, attorney for 23XI and Front Row. “This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for Dec. 1.
“We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”
The two teams sued and asked for a temporary injunction that would recognize them as chartered teams for this season. The antitrust case isn’t scheduled to be heard until December.
The teams said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick’s contract would have made him a free agent if the team could not guarantee him a charter-protected car.
The original judge ruled that NASCAR's charter agreement likely violated antitrust law in granting the injunction. But when they heard arguments last month, the three judges at the the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, indicated they were skeptical of that decision.
The judges said in Thursday's ruling they were not aware of any case that supports the lower court's theory of antitrust law, so they vacated the injunction.
“In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory,” the court said. “And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.”
The teams have 14 days to appeal to the full court. The injunction also has no bearings on the merits of the case, and the earliest NASCAR can treat the teams as unchartered — a charter guarantees their organizations a starting spot each week and prize money — is one week after the deadline to appeal, provided there is no pending appeal.
NASCAR has not said what it would do with the six charters held by the two organizations if they are returned to the sanctioning body. There are only 36 chartered cars for a 40-car field. If the teams do not appeal, the six entries would have to compete as “open” cars — which means they'd have to qualify on speed each week to make the race and they would receive a fraction of the money.
It's not clear what would happen to Reddick's contract. He goes to Michigan this weekend ranked sixth in the Cup Series standings. Both organizations are still seeking a win this season — Hamlin's three victories are with Joe Gibbs Racing, the team he drives for.
Reddick is last year's regular-season champion and competed for the Cup title last November.
AP auto racing: https://apnews.com/hub/auto-racing
Drivers compete down the front stretch during a NASCAR Cup Series auto race at Charlotte Motor Speedway, Sunday, May 25, 2025, in Concord, N.C. (AP Photo/Matt Kelley)
Denny Hamlin waits for the start of a NASCAR Cup Series auto race Sunday, June 1, 2025, in Lebanon, Tenn. (AP Photo/George Walker IV)
Denny Hamlin (11) leads the pack of cars through turn three during a NASCAR Cup Series auto race Sunday, June 1, 2025, in Lebanon, Tenn. (AP Photo/George Walker IV)
Los Angeles Chargers (11-5) at Denver (13-3)
Sunday, 4:25 EST, CBS.
BetMGM NFL Odds: Broncos by 12 1/2.
Against the spread: Chargers 8-7-1; Broncos 6-9-1.
Series record: Broncos lead 72-58-1.
Last meeting: Chargers beat Broncos 23-20 on Sept. 21, 2025, in Inglewood, California.
Last week: Chargers lost to Texans 20-16; Broncos beat Chiefs 20-13.
Chargers offense: overall (12), rush (12), pass (15), scoring (T-16).
Chargers defense: overall (4), rush (9), pass (6), scoring (7).
Broncos offense: overall (9), rush (19), pass (9), scoring (14).
Broncos defense: overall (3), rush (2), pass (8), scoring (4).
Turnover differential: Chargers plus-4 ; Broncos minus-5.
QB Trey Lance is making his sixth career start and first for the Chargers. He's appeared in three games this season, completing 7 of 13 passes for 90 yards with no touchdowns, no interceptions and two sacks.
WR Courtland Sutton surpassed 1,000 yards last week, but he dropped a touchdown pass and caught just four of the 10 passes Bo Nix threw his way. Sutton has 73 receptions for 1,012 yards and seven TDs this season, a similar output to last year when he caught 81 passes for 1,081 yards and eight TDs.
The Chargers offensive line and backup QB versus Denver's dominant pass rush. The Broncos have had a franchise-record and NFL-best 64 sacks so far and are within striking distance of the NFL record of 72 set by the 1984 Chicago Bears, who had a dozen in their season finale that year.
Chargers: Coach Jim Harbaugh said he's sitting QB Justin Herbert (left hand) for the finale along with several other starters. Rookie RB Omarion Hampton (ankle) missed practice time this week as did CB Nikko Reed (hamstring) and OL Jamaree Salyer (hamstring). Harbaugh said he doesn't expect Salyer to play Sunday.
Broncos: LB Dre Greenlaw has been dealing with a hamstring injury and won't play in the finale. WR Pat Bryant (concussion), TE Nate Adkins (knee) and DL John Franklin-Meyers (hip) were limited in practice this week.
The Chargers have won all three games against Denver and Sean Payton with Jim Harbaugh as head coach. All three have been one-score games.
The Chargers clinched a playoff berth for the second straight season, the first time that's happened since they reached the postseason four consecutive times from 2006-09. ... The Bolts are coming off a 20-16 loss to Houston in which they were 2 of 5 in the red zone while the defense allowed a pair of rare long touchdown passes to open the game. K Cameron Dicker missed a field goal from inside 40 yards for the first time in his career and pulled an extra point wide for the first time this season. ... The Chargers are the only team that's unbeaten (5-0) in the AFC West this season. ... RB Omarion Hampton has a touchdown in three of his past four games. ... WR Quentin Johnston is coming off a 98-yard performance in Week 17. ... WR Keenan Allen had seven catches for 65 yards and a touchdown against Denver in Week 3. ... The Broncos were the first team to clinch a playoff spot and can earn the AFC's No. 1 overall seed with a win Sunday. The Broncos won the AFC West for the first time since 2015, ending the Kansas City Chiefs' nine-year reign atop the division. ... Broncos QB Bo Nix is tied for the second-most victories over the first two seasons at his position with 23. With a win Sunday, he'll tie Russell Wilson's NFL record of 24 wins in his first two seasons. ... Nix needs one TD pass to become the fourth QB in NFL history with at least 25 in each of his first two seasons. ... Nix is the third player ever, joining Herbert and Peyton Manning, with 3,500-plus passing yards and 25 or more TD passes in each of his first two NFL seasons. ... RB RJ Harvey leads rookies with a dozen TDs this season. He's scored a TD in five consecutive games. ... LB Nik Bonitto had two sacks in Week 3 against the Chargers.
AP NFL: https://apnews.com/hub/NFL
Los Angeles Chargers tight end Oronde Gadsden (86) celebrates his touchdown during the second half of an NFL football game against the Houston Texans Saturday, Dec. 27, 2025, in Inglewood, Calif. (AP Photo/Kevork Djansezian)
Denver Broncos linebacker Alex Singleton reacts during the second half of an NFL football game against the Kansas City Chiefs Thursday, Dec. 25, 2025, in Kansas City. (AP Photo/Charlie Riedel)
Los Angeles Chargers running back Omarion Hampton (8) celebrates his touchdown with quarterback Justin Herbert (10) during the second half of an NFL football game against the Houston Texans Saturday, Dec. 27, 2025, in Inglewood, Calif. (AP Photo/Kevork Djansezian)
