Michael Jordan Is Suing NASCAR And He's Right
NASCAR is running an unlawful monopoly on the sport of stock car racing, alleges a suit filed on Wednesday by stock car teams 23XI Racing and Front Row Motorsports against the sanctioning body and its CEO Jim France. 23XI is, of course, the team co-owned by NBA legend Michael Jordan and racer Denny Hamlin. This suit alleges that NASCAR have adopted anti-competitive practices which have prevented competitors within the series from getting a fair shake. All teams were given until September 6 to sign a new charter agreement with NASCAR, and of the fifteen teams in the sport 23XI and FRM are the only two which did not sign.
“We share a passion for racing, the thrill of competition, and winning,” said a joint statement from 23XI Racing and Front Row Motorsports. “Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and most importantly, fans.”
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And for good measure, here’s the statement the Jumpman released on Twitter:
“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”
NASCAR and its teams have been debating over the charter agreement for two years, with teams seeking a larger share of the sport’s revenue, and the ability to convert their charters into a permanent guaranteed space on the starting grid.
What are these anti-competitive practices NASCAR is alleged to have participated in? According to the suit:
NASCAR bought the majority of premier racetracks and used them exclusively for NASCAR eventsNASCAR imposed exclusivity deals on series-sanctioned tracksNASCAR acquired its only real competitor, the ARCA Menards Series, artificially preventing its growthNASCAR prevented teams from participating in other stock car racing seriesNASCAR retains ownership of current-generation spec car parts, forcing teams to purchase these items at an inflated price from NASCAR’s chosen suppliers
While NASCAR itself keeps raking in big dollar TV deals with Fox Sports, NBC Sports, TNT Sports, and Amazon, the teams are getting very little in return. Allegedly NASCAR has made broadcast deals totaling 23.1 billion dollars, while big teams like Hendrick Motorsports continue to run budgets in red ink.
Continues the suit: “It has become evident that this antitrust litigation is the only way to free up the market for competition and enable Plaintiffs, and other stock car racing teams, to obtain the fair charter terms that will be realized in a competitive market for their services as top-tier stock car racing teams. A competitive market will enable the teams to earn the reasonable profits that are necessary for them to re-invest in their businesses and create an even more exciting product for stock car racing fans, sponsors, and broadcasters. The France family and NASCAR are monopolistic bullies. And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. The moment has now arrived.”
23XI and Front Row Motorsports have filed injunctions against NASCAR preventing the series from disallowing the teams from competing during the 2025 season, despite not signing the charter agreement.
