CHARLOTTE, N.C. — Retired NBA legend Michael Jordan and his fellow NASCAR team owners recently appeared in federal court to address their ongoing antitrust case against NASCAR. They argue that the organization operates under an unfair business model that adversely affects competition within the sport.
Jordan co-owns 23XI Racing alongside three-time Daytona 500 champion Denny Hamlin, while Bob Jenkins heads up Front Row Motorsports. Together, they filed a lawsuit against NASCAR and its chairman, Jim France, last October after experiencing challenging negotiations surrounding NASCAR’s charter system, which resembles a franchise model that includes shared revenues.
The lawsuit emerged after both teams rejected a last-minute offer made to all Cup Series teams in September. According to the two teams, the charter system restricts competition by unfairly obligating teams to adhere to NASCAR’s rules, its racetracks, and its suppliers. They have labeled the France family and NASCAR as “monopolistic bullies” for their practices.
This legal battle unfolds at a critical time for NASCAR, just ahead of its championship weekend. The decisive race is scheduled for Sunday in Phoenix, where Tyler Reddick from 23XI Racing is one of the four drivers in contention for the title.
Last week, U.S. District Judge Frank D. Whitney rejected 23XI and Front Row’s request for expedited discovery, which sought to compel NASCAR to present documents before the hearing on the preliminary injunction. Whitney noted that while the discovery could help the plaintiffs demonstrate a high probability of winning, it did not meet the necessary criteria for such requests.
During the hearing, Jordan, Hamlin, and Curtis Polk from 23XI Racing were accompanied by Jenkins and Front Row president Jerry Freeze. The outcome of this hearing will significantly impact the futures of both racing teams for the upcoming season.
While 23XI and Front Row will still have the option to compete next year, they would have to do so as open teams. They plan to obtain an injunction because they fear that even this route would include a stipulation allowing NASCAR to escape any future litigation. This situation leads them to request the injunction to enable pursuit of their lawsuit while continuing to race.
The teams maintain that granting the injunction would not harm NASCAR, as the series had previously indicated plans to include 36 chartered teams. Allowing 23XI and Front Row to compete as chartered teams while the lawsuit is ongoing would help preserve the existing competitive landscape.
NASCAR has since revised its plans to involve 32 chartered teams and eight open cars within its 40-car lineup. Currently, both 23XI and Front Row possess two charters each that remain unsigned, and both teams are negotiating deals to acquire an additional charter from Stewart-Haas Racing. However, these agreements have yet to be finalized, as NASCAR has signaled it will not validate these transactions, claiming it will only honor the 32 charters signed earlier in September.
NASCAR defends its position by arguing that the two teams do not fulfill the necessary criteria for an injunction, given their capacity to compete as open teams. The organization also asserts that any financial damages suffered by the teams could be addressed through monetary compensation if they succeed in their case.
