Yahoo Sports Michael Jordan joins lawsuit against ‘monopolistic bullies’ at NASCAR
Michael Jordan and his NASCAR team joined a competitor on the circuit in filing a lawsuit on Wednesday that accuses the stock-car racing giant and the family that controls it of antitrust violations under the federal Sherman Act.
“The France family and NASCAR are monopolistic bullies,” the lawsuit states. “And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. That moment has now arrived.”
The lawsuit was filed in a North Carolina federal court by a legal team acting on behalf of 23XI Racing, a team formed in 2020 and co-owned by Jordan, and Front Row Motorsports, which has competed on the circuit since 2004. 23XI is also part-owned by Denny Hamlin, a 54-time winner in Cup Series events who drives for Joe Gibbs Racing.
Named as defendants in the lawsuit were NASCAR and its CEO, Jim France, a son of Bill France Sr., who founded NASCAR in 1948 and whose family has controlled it ever since. That differentiates NASCAR, the lawsuit noted, from comparable sports leagues such as the NFL and NBA, which are “owned and operated by their teams.”
NASCAR teams essentially operate as independent contractors that secure entrance to races on the circuit via charters, legal agreements that for many years lasted just one year, leaving the teams with little long-term financial stability. In 2016, after many teams banded together to negotiate with NASCAR as a group, the charter agreement was extended to a four-year term, which was renewed in 2020. With the current term set to expire at the end of this year, NASCAR engaged in what the lawsuit described as pressure tactics to get agreement on a new charter that is even more to the France’s benefit - and to the alleged detriment of the teams - than the previous version.
NASCAR, per the lawsuit and as reported elsewhere, gave teams an ultimatum last month to sign during a brief window before the playoffs began or risk not having a 2025 charter. All but 23XI Racing and Front Row Motorsports complied, with Hendrick Motorsports owner Rick Hendrick saying at the time he was “just tired” after months of negotiations.
In a joint news release Wednesday, the two teams said the “unfair terms” of the 2016 and 2025 charters were “central” to the legal action. Most notable among the “anti-competitive practices” ascribed to NASCAR by the teams were these listed items:
- “Buying a majority of the premier racetracks that are exclusive to NASCAR races
- “Imposing exclusivity deals on NASCAR-sanctioned racetracks
- “Acquiring Automobile Racing Club of America (ARCA), the only notable stock car racing series competitor
- “Preventing teams from participating in any other stock car races, while also retaining ownership over Next Gen parts and cars
- “Forcing teams to buy their parts from single-source suppliers chosen by NASCAR.”
The charter terms, the lawsuit stated, have caused teams to “struggle to make a reasonable profit while investing the tens of millions of dollars” required to compete at stock car racing’s premier level. Running a team in the top-tier Cup Series was estimated at around $18 million annually, not including the salaries of drivers.
The lawsuit noted that of the 19 team owners who signed the 2016 charter, just eight remain in the sport. Meanwhile, the France family was said to have “profited handsomely,” including from broadcast deals totaling $23.1 billion over the past 24 years.
“Everyone knows that I have always been a fierce competitor,” Jordan said in a statement, “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 had no public comment, pointing (via the Associated Press) to pending litigation. The circuit’s headquarters are in Daytona Beach, Fla., but it also has corporate offices in Charlotte. In explaining its filing in North Carolina, the lawsuit noted that NASCAR conducts a significant amount of its business in that state.
Among the attorneys from the Chicago-based firm of Winston and Strawn LLP who submitted the lawsuit was Jeffrey Kessler. Kessler has been involved in a number of labor actions in the sports world, including work on behalf of the NFL players union, NCAA athletes and members of the United States women’s national soccer team.
Front Row Motorsports, owned by Bob Jenkins, and 23XI said they would seek a preliminary injunction allowing them to race next year under the new charter agreement while pursuing their antitrust litigation.
“I have been part of this racing community for 20 years and couldn’t be more proud of the Front Row Motorsports team and our success. But the time has come for change,” Jenkins said in a statement. “We need a more competitive and fair system where teams, drivers, and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league.”
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