MIchael Jordan’s race team among two NASCAR Cup teams is suing NASCAR

23XI Racing, the team co-owned by NBA legend Michael Jordan, and Front Row Motorsports jointly filed an antitrust lawsuit against NASCAR in federal court in North Carolina. 23XI Racing and Front Row Motorsports are two companies that have held out on the NASCAR charter agreement that was signed by all other organizations participating in the NASCAR Cup Series last month.

In the lawsuit, both teams claim that the case concerns “the unlawful monopolization of leading stock car racing by the French family in order to enrich itself at the expense of leading stock car racing teams…”

The lawsuit alleges that NASCAR and its CEO Jim France used “anti-competitive and exclusionary practices” to “enrich themselves at the expense of leading stock car racing teams.”

According to the lawsuit, the teams believe that NASCAR and the French Family violated Section 2 of the Sherman Antitrust Act (1890) by establishing a monopsony in the relevant stock car racing market
teams.

Additionally, the teams believe that NASCAR and the French Family have violated Section 1 of the Sherman Antitrust Act, which states: “Every agreement, trust or other arrangement or conspiracy to restrain trade or commerce among the several states or with foreign nations is hereby deemed illegal.”

23XI Racing and Front Row Motorsports have hired attorney Jeffrey Kessler, who has been involved in several sports league lawsuits, including the one that led to NFL free agency. Sports Business Journal named Kessler to its 2021 Most Influential People in Sports Business list.

After the lawsuit became public, 23XI Racing and Front Row Motorsports released a joint statement.

“We share a passion for racing, the thrill of competition and victory. Off the racetrack, we share the belief that change is necessary in the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in a way that benefits teams, drivers, sponsors and, most importantly, fans.”

Michael Jordan, who won six NBA championships as a player, says he has always done everything in his power to win, and this lawsuit shows he will do whatever it takes to fight for NASCAR racing teams.

“Everyone knows that I have always been a fierce competitor and that will to win drives me and the entire 23XI team every week on the track,” Jordan said in a statement. “I love racing and the passion of our fans, but today’s NASCAR race is unfair to the teams, drivers, sponsors and fans. Today’s action shows that I am ready to fight for a competitive market where everyone wins.”

Additionally, Front Row Motorsports team owner Bob Jenkins said, “I have been a part of this racing community for 20 years and I couldn’t be more proud of the Front Row Motorsports team and our success. But it’s time for a change. We need a more competitive and fair system where teams, drivers and sponsors can be rewarded for our collective investments by building long-term enterprise value, just like any other successful professional sports league.”

NASCAR has not yet commented on the joint antitrust lawsuit filed by 23XI Racing and Front Row Motorsports.

The charter agreement negotiations are at the heart of the dispute between NASCAR and two racing teams that have filed an antitrust lawsuit. Throughout the negotiations, teams have been trying to come together to negotiate a better deal for their share of the revenue-sharing pie, as even top teams in the sport, such as Hendrick Motorsports, have publicly stated that they have not made a profit in over a decade.

According to multiple sources who spoke to Racing America on SI on the condition of anonymity, NASCAR put teams in a difficult position ahead of the race weekend at Atlanta Motor Speedway, the same weekend that all but two teams signed a charter agreement. Sources indicate that NASCAR has threatened to completely revoke the Charter if teams do not sign an agreement by midnight ET on Friday, September 6.

Section 20 of the preamble to the lawsuit filed Wednesday morning mentions a “take it or leave it” contract offered by NASCAR.

There’s no telling what will happen next, but we’re currently sailing through uncharted territory in the NASCAR world.