Michael Jordan’s fight against NASCAR heads to court : NPR

CHARLOTTE, N.C. — Michael Jordan’s bitter battle against NASCAR headed to federal court on Monday in a jury trial that could break up the top motorsports series in the United States.

Antitrust allegations made by Jordan-owned 23XI Racing and Front Row Motorsports have exposed scandalous personal communications, NASCAR’s finances and deep contempt between some of the sport’s top executives and its participants.

Three-time Daytona 500 winner Denny Hamlin, who owns 23XI with Jordan and had the Cup Series championship slip through his fingers less than a month ago, warned this weekend that the gloves will be off during two weeks of testing in the Western District of North Carolina.

“Our fans have been brainwashed by (NASCAR’s) stuff for decades,” Hamlin wrote on social media. “The lies are over as of Monday morning. It’s time for the truth. It’s time for change.”

NASCAR Commissioner Steve Phelps said the series has tried hard to settle the case before Monday’s hearing.

What is the lawsuit about?

The lawsuit was filed by 23XI Racing, which is owned by basketball Hall of Famer Jordan, Hamlin and Jordan’s longtime business manager Curtis Polk. They were also joined by Front Row Motorsports, a team owned by entrepreneur Bob Jenkins, which won the 2021 Daytona 500. These two were the only teams among the 15 that declined to sign renewals on the charter agreements presented to them by NASCAR at the end of 2024.

All 15 teams were fighting for more favorable terms in the charter agreements during negotiations lasting more than two years, and the final terms were lower than the teams had sought. 23XI and Front Row accused NASCAR of being a monopoly and sued on antitrust grounds.

What is a charter?

The charter system was introduced in 2016 and is NASCAR’s version of the franchise model used by most other professional sports leagues. Being chartered guarantees that car a spot in the 40-car field for all 38 races, as well as a set payment from the weekly purse.

Even with charter, teams have argued that the revenue model is not viable. The teams wanted charters to be permanent (they were renewable and revocable), a larger percentage of revenues, and a voice in governance.

23XI and Front Row felt that the new charter agreement failed to meet those demands and refused to sign it. Both organizations argue that NASCAR has too strong a hold on all aspects of the racing series and allege a monopoly based on exclusivity clauses, ownership of most race tracks on the Cup schedule, and its control over rules and regulations.

23XI and Front Row are now demanding a large monetary sum from NASCAR to cover their legal fees and the financial losses they suffered due to not being chartered this year and the lawsuit.

NASCAR defense

NASCAR was founded 76 years ago by the Florida-based France family and says it has not violated antitrust laws because it has done nothing to regulate the business beyond normal business practices.

NASCAR has argued that the 2025 charter agreement increases payouts and proves it is not anti-competitive. NASCAR has also cited the option for cars to enter the race as “open teams” and attempt to make the field in one of four non-chartered spots on qualifying speed. 23XI and Front Row have been open teams, and while their combined six cars made every race, it cost both organizations millions of dollars in purse money.

The pre-trial discovery process revealed that NASCAR made more than $100 million in 2024.

behind the scenes drama

The discovery phase has been brutal for both sides, with inappropriate personal communications from top NASCAR officials as well as both teams being exposed.

Phelps was among the leaders who called Hall of Fame team owner Richard Childress a “dinosaur,” an “idiot” and a “stupid redneck” in discussions with other NASCAR executives. The discussion also included a reference to Childress “owing his entire fortune to NASCAR” and needing to be “taken back out and flogged.”

Another NASCAR executive alleged that the sport’s fans couldn’t read, and several series leaders warned Hall of Fame driver Tony Stewart’s summer short-track series, SRX, and threatened to kill him because NASCAR drivers were participating.

On the other hand, the president of 23XI said that NASCAR president Jim France had to die to get favorable charter terms, Hamlin admitted his dislike of the France family, one of Jordan’s advisors said that Hamlin was not a good businessman and Jordan joked that he loses more money in casinos than he pays one of his drivers.

Who will be in court?

NASCAR has indicated that it wants Rick Hendrick and Roger Penske, the two most powerful team owners in the United States, and does not want any Hall of Famers to testify. They both filed a motion requesting that they not be deposed, and that if they should be deposed, the inquiry should be limited to the charter.

Hendrick and Penske are among a large group of owners who submitted declarations on behalf of NASCAR in defense of the charter system. The announcements showed unity among non-suing teams who do not want the charter system to be dismantled, which could happen if NASCAR loses the case.

But, what NASCAR doesn’t highlight is that many team owners still note that the 2025 charter agreements still fall short of all of their requests.

Additionally, NASCAR has asked that some plaintiffs not be allowed to sit in the courtroom during the trial. It is believed the demand was made so that Jordan, a North Carolina native who led the University of North Carolina to a national championship and once owned the NBA’s Charlotte Hornets as well as Hamlin, would not be given the opportunity to distract the jury.

No decision had been made as of Sunday afternoon on who could sit in court.

What are some results?

The case can still be settled at any time, even if a judgment has been rendered and it has gone to appeal.

If 23XI and Front Row win, a jury will determine actual monetary damages and Judge Kenneth Bell may adjust the figure and even triple it. Bell will also be charged with exposing any monopolies found.

Threats to NASCAR include orders that the France family sell the sport, sell the tracks they own, end the charter system, order a permanent charter – anything is possible.

If NASCAR wins, it is unlikely that 23XI and Front Row will remain in business after 2026 and the six charters set aside will likely be sold to other interested parties. The last charter sold went for $45 million, and NASCAR has indicated there is strong interest from potential buyers, including private equity firms.