Michael Jordan has taken NASCAR to court, accusing the motorsports organizer of operating an illegal monopoly that he and other team owners say has suppressed competition and caused major financial losses, as the antitrust trial opened this week in North Carolina.
Lawsuit opens with testimony from Jordan’s co-owner
Jordan attended the first day of the trial on Monday, sitting in the front row of the courtroom as Denny Hamlin, a three-time Daytona 500 champion and co-owner of Jordan’s team, 23XI Racing, delivered emotional testimony. The lawsuit, filed in October 2024, was brought by 23XI Racing and Front Row Motorsports, which is led by fast-food franchise owner Bob Jenkins.
The plaintiffs argue that NASCAR, the largest motorsports operator in the United States, has made hundreds of millions of dollars through anti-competitive conduct. The trial is being held in Charlotte, North Carolina, and is overseen by Judge Kenneth Bell. A six-person jury will decide the outcome. The trial is expected to last roughly two weeks.
NASCAR chief executive Jim France, who inherited the company from his father and founder Bill France Sr., denies any wrongdoing.
Charter system and control at the center of the dispute
At the center of the lawsuit is NASCAR’s charter agreement system, which guarantees teams entry into all 38 Cup Series races and provides a defined share of weekly prize money. The charters function as renewable and revocable contracts rather than permanent franchises.
Last year, 23XI Racing and Front Row Motorsports were the only two teams out of 15 that refused to sign extensions to their charter agreements, arguing that the terms were unfair. The teams sought a larger share of revenue and permanent charters, maintaining that the current business model is not financially sustainable even with charter protections.
The teams also allege that NASCAR requires them to race the company’s Next Gen cars and to use parts supplied only by NASCAR-licensed vendors. They further contend that NASCAR maintains excessive control over race rules, imposes exclusivity clauses they describe as monopolistic, and owns most of the racetracks on the Cup Series schedule, limiting opportunities for competition.
Financial losses and valuation figures presented in court
Representing 23XI Racing, attorney Jeffrey Kessler said in his opening statement that Bob Jenkins has never posted a profit since founding Front Row Motorsports in 2004, despite securing a Daytona 500 victory in 2021.
Kessler told the court that more than 70% of NASCAR teams lost money in 2024, citing a study commissioned by NASCAR. He also said that nearly $400m (£302.7m) was paid to the France Family Trust over a three-year period. Kessler referenced estimates from Goldman Sachs valuing NASCAR at $5bn.
“What the evidence is going to show is Mr France ran this for the benefit of his family at the expense of the teams and sport,” Kessler told the court.
NASCAR has countered that charters are not required for participation and highlighted increased payouts under the most recent charter agreement. The organization noted that four of the 40 Cup Series starting positions are reserved for “open teams” that do not hold charters.
NASCAR defense highlights long-standing family ownership
NASCAR’s defense attorney Johnny Stephenson said the France family built the organization over 75 years and rejected claims that it operates unlawfully.
“The France family built NASCAR from nothing. They are an American success story,” Stephenson said in court on Monday. “They’ve done it through hard work over 75 years. That’s the kind of effort that doesn’t deserve a lawsuit. That’s the kind of effort that deserves admiration.”
Potential industry consequences if either side prevails
Front Row Motorsports and 23XI Racing are seeking significant financial damages from NASCAR to cover legal costs and losses tied to not holding charters this year. Their existing charters are currently held by NASCAR and would likely be sold to other buyers, including private equity firms, if the organization prevails in court.
If the teams are unsuccessful, their six combined cars could be forced out of operation. If the plaintiffs win, the ruling could affect the structure of NASCAR’s business model. Judge Bell would have broad discretion in determining remedies, which could include requiring the sale of NASCAR or ending the charter system.
Background of 23XI Racing and celebrity team ownership
Jordan is the majority owner of 23XI Racing, which he co-owns with Hamlin and his longtime business adviser Curtis Polk. The group bought the team in 2020 after investing $20m and purchasing two charters, according to 23XIracing.com.
The team entered its first Cup Series season with one driver, Bubba Wallace, and one car. It now fields three cars and is regarded as a competitive Cup Series team. Tyler Reddick and Wallace have won a combined 10 races for 23XI and have qualified for multiple playoff appearances.
Other high-profile figures have also entered NASCAR ownership in recent years. Grammy Award-winning artist Pitbull became co-owner of Trackhouse Racing with Justin Marks in 2021. That same year, basketball player LeBron James became a partner in Fenway Sports Group, which co-owns Roush Fenway Racing.
James also publicly supported Wallace in 2020 after a noose was found in Wallace’s garage stall at Talladega Superspeedway. A later FBI investigation concluded that no hate crime had occurred.
Featured image credits: Wikimedia Commons
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