In a significant legal battle, NASCAR is moving to thwart an injunction bid from basketball icon Michael Jordan and other stock car team owners, who allege the racing organization is engaging in anti-competitive practices. The lawsuit centers on claims that NASCAR is unfairly restricting revenue sharing and monopolizing the premier stock car racing market.
In a filing submitted late Wednesday, NASCAR urged a federal judge to reject the request from Jordan’s 23XI Racing team and Front Row Motorsports to retain their status as “charter” members while pursuing their lawsuit. This move comes amid increasing tension as the two teams assert that NASCAR’s actions violate U.S. antitrust laws.
The plaintiffs accuse NASCAR and its CEO, Jim France, of imposing restrictive conditions that limit competition from other racing organizations, thereby allowing NASCAR to retain a disproportionate share of profits. Jeffrey Kessler, the attorney representing the team owners, stated, “NASCAR’s filing does not dispute any of the facts which establish its unlawful monopolization and the need for immediate relief so that the teams can compete while they pursue their antitrust claims.”
Founded in 2020 by Michael Jordan, Denny Hamlin, and Curtis Polk, 23XI Racing, along with Bob Jenkins’ Front Row Motorsports, have opted not to sign NASCAR’s latest charter agreement. They argue that the new terms would strip them of their ability to challenge the league in court. Charter teams are guaranteed entry into prestigious Cup Series races, while non-chartered teams face tougher competition for available slots.
The plaintiffs are seeking a U.S. judge’s injunction that would permit them to race as chartered teams in 2025. They contend that NASCAR is abusing its power to impose unfair economic terms that are far below what teams could secure in a competitive environment.
NASCAR countered by arguing that the lawsuit is not aimed at promoting competition but is rather an attempt by the plaintiffs to secure financial advantages beyond what could be negotiated fairly. In its filing, NASCAR stated, “Antitrust law does not require successful sports enterprises to admit every team that wants to participate or protect teams that do not want to compete.” The organization asserts its right to determine how revenue is distributed among teams.
This case, officially titled 2311 Racing LLC d/b/a 23XI Racing and Front Row Motorsports Inc. v. National Association for Stock Car Auto Racing LLC and James France, is currently before the U.S. District Court for the Western District of North Carolina.
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