Michael Jordan’s NASCAR team, 23XI Racing, and Front Row Motorsports filed an antitrust lawsuit against NASCAR and its CEO, Jim France, on Wednesday.
The teams argue that NASCAR has employed anticompetitive practices that prevent fair competition within the sport.
In a joint statement, 23XI Racing and Front Row Motorsports said, “Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans.”
23XI Racing, co-founded in 2020 by NBA legend Jordan, driver Denny Hamlin, and Jordan’s business partner Curtis Polk, is relatively new to NASCAR. Front Row Motorsports, owned by Bob Jenkins, has been competing full-time since 2005.
The lawsuit claims that NASCAR and France operate without transparency, suppress competition, and maintain control over the sport in ways that benefit themselves while disadvantaging team owners, drivers, sponsors, partners, and fans.
One of the major issues highlighted by the teams is that NASCAR not only owns premier racetracks, making them exclusive to its races, but also allegedly forces teams to purchase parts from single-source suppliers selected by NASCAR.
Moreover, teams are restricted from participating in other stock car races.
The suit further alleges that despite these constraints, teams struggle to generate reasonable profits. Team investors are required to spend tens of millions of dollars annually to maintain operations.
Bob Jenkins of Front Row Motorsports stated that despite being in the business for two decades, he 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 investment by building long-term enterprise value, just like every other successful professional sports league,” Jenkins said.
While teams face financial challenges, NASCAR is reportedly thriving. Last November, the organization signed a new seven-year media deal with Fox, NBC, Amazon, and Warner Bros. Discovery worth $7.7 billion—a 40% increase over its previous contract.
The lawsuit underscores that unlike other major professional sports leagues, which are collectively owned and operated by teams and their owners, NASCAR is privately controlled by the France family.
It claims, “No other major professional sport in North America is run by a single family that enriches themselves through these kinds of unchecked monopolistic practices.”
The financial pressures within the sport have led to significant team turnover. Of the 19 team owners initially granted charters in 2016, only eight remain active in the sport, according to the lawsuit.
Running a chartered team for a full season in the Cup Series can cost around $18 million per year.
Even well-established teams are feeling the strain. Jeff Gordon, a former NASCAR driver and vice chairman of Hendrick Motorsports, revealed that despite holding four charters and 14 Cup Series championships, his team has not seen a profitable season in years. He expressed concerns that the sport’s sustainability is increasingly at risk.
Jordan, the first Black majority owner of a full-time NASCAR team since the legendary Wendell Scott, also voiced his frustration with the current system.
“Today’s action shows I’m willing to fight for a competitive market where everyone wins,” Jordan said in a statement.
“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.
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.”
Jordan’s 23XI Racing, led by driver Tyler Reddick, recently secured its first regular-season championship last month, marking a milestone in the team’s fourth year. Reddick currently holds ninth place in NASCAR’s standings.
Both 23XI Racing and Front Row Motorsports intend to seek discovery from NASCAR and France, while also pursuing damages for what they claim are anticompetitive terms in the 2016 charter agreement.
Representing the teams in this high-profile case is Jeffrey Kessler, one of the most prominent sports lawyers in the country and co-executive chairman of Winston & Strawn.
Kessler announced that the teams plan to file a preliminary injunction to allow them to continue racing in the next calendar year while the antitrust litigation unfolds.
