Michael Jordan's 23XI Racing, Front Row Motorsports sue NASCAR and CEO Jim France

Shane Connuck, The Charlotte Observer on Oct 2, 2024

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CHARLOTTE, N.C. — Two Cup Series teams, including the one owned by Michael Jordan, jointly filed an antitrust lawsuit against NASCAR.

23XI Racing, the Huntersville-based team Jordan co-owns with longtime driver Denny Hamlin, joined Front Row Motorsports to argue that the sport’s sanctioning body — led by CEO Jim France — has enriched itself through “unchecked monopolistic practices.”

“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,” Jordan said in a statement. “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.”

Teams seeking injunction after refusing to sign charter agreement

NASCAR adopted its “charter” system in 2016, which makes its race teams operate like franchises in other professional sports. The current agreement expires on Dec. 31, and teams have been trying to negotiate an extension for more than two years.

23XI Racing and Front Row Motorsports, a smaller team owned by entrepreneur Bob Jenkins, both refused to sign a final offer presented by NASCAR on Sept. 6, two days before the first race of the Cup Series playoffs at Atlanta. Thirteen of 15 teams signed the take-it-or-leave-it offer, with some telling the Associated Press that they felt “threatened” or “coerced” by the sanctioning body.

The two teams are filing a preliminary injunction over the coming days that would allow them to continue racing under the current charters without penalty while the case plays out.

“It’s actually pretty simple in my opinion,” Hamlin said. “When I look around, I see that the best and most competitive sports in the world understand that when teams thrive, fans benefit, and that everyone who invests in making the sport a success should share fairly in that success.

“With the right changes, we can certainly make that a reality in racing.”

‘An attempt to further marginalize the teams’ voices in the sport’

In a joint statement released Wednesday morning, the teams alleged that “NASCAR and the France family operate without transparency, have stifled competition, and control the sport of stock car racing in ways that unfairly benefit them at the expense of team owners, drivers, sponsors, partners, and fans.”

The statement lists several practices it alleges have been monopolistic by NASCAR.

It notes how NASCAR bought the majority of premier race tracks and says they have been “imposing exclusivity deals” on these NASCAR-sanctioned tracks; The acquisition of ARCA in 2018 that put the only notable stock car racing series competitor under the direction of NASCAR; Preventing teams from competing in any other stock car races while retaining ownership over Next Gen cars and parts; and forcing teams to buy their parts from third-party suppliers that NASCAR chooses.

“A true partnership, not dictatorship, is our goal,” said Curtis Polk, another 23XI Racing co-owner and Jordan’s longtime business partner. “For over two years, I have dedicated myself to championing a more fair and transparent system within NASCAR, where we recognize the importance of the France family and the sanctioning body, but do what is best for all stakeholders. The charter that was forced on the teams with only hours’ notice does not accomplish these objectives.

“The new charter is an attempt to further marginalize the teams’ voices in the sport and consolidate control and the power in the hands of the France family for their sole benefit. I hope our actions today lead to a future of collaboration for this great sport we love.”