Michael Jordan files antitrust lawsuit against NASCAR

By Cedric “BIG CED” Thornton

October 3, 2024

“I love racing and the passion of our fans, but the way NASCAR is run today is unfair to the teams, drivers, sponsors and fans.”

In May, NBA Hall of Famer Michael Jordan (owner of 23XI Racing) warned NASCAR that the way they were running the company was unfair to car owners and that “the sport would die” unless it changed its business practices and had a “good partnership.” ” Jordan has now filed an antitrust lawsuit with another car owner, Front Row Motorsports, against NASCAR and CEO Jim France, stating that he used anti-competitive practices to prevent fair competition in the sport.

According to CNBCthe lawsuit alleged that NASCAR and France operate without transparency and in a way that does not benefit team owners, drivers, sponsors, partners and fans.

“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,” 23XI Racing and Front Row Motorsports said in a statement in a joint report.

23XI Racing and Front Row Motorsports disagree that NASCAR controls all aspects of the business, including purchasing racetracks exclusively for its races and allegedly forcing teams to purchase supplies from suppliers selected by NASCAR from a single source. Another point of contention is the ban on teams from participating in other stock car races.

Jordan’s team was founded and joined NASCAR in 2020 with race driver Denny Hamlin and Jordan’s business partner, Curtis Polk. Bob Jenkins is the owner of Front Row Motorsports and has been involved in the sport since 2005. Jenkins said he has been in the industry for 20 years and has yet to turn a profit.

“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,” he said.

The lawsuit mentions that of the 19 team owners who were originally awarded charters in 2016, only eight of them remain in the sport.

According to CBS Newsa recent change in revenue sharing and new charter rules have put NASCAR on a path that is not profitable for car owners. Media reported that the league was negotiating with 36 team owners to renew the charter system introduced in 2016. All teams are guaranteed a place in each Cup Series race. The owners want the current charter agreement to be permanent, as the contract expires at the end of the 2024 season on November 10.

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

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