NASCAR Michael Jordan, the majority owner of NASCAR’s 23XI Racing has filed a longshot, big-time legal battle against NASCAR. He argues that the group operates as a classic illegal monopoly. In October 2024, a lawsuit was filed as a joint venture between Denny Hamlin, co-owner of 23XI Racing, and Front Row Motorsports. Their goal would be to disrupt NASCAR’s charter system and the financial stranglehold it has on all teams.
23XI Racing made its NASCAR Cup Series debut fielding one car with driver Bubba Wallace at the helm. Since then, the team has grown to field three full-time competitive cars and drivers like Tyler Reddick. The growth of 23XI Racing has positioned it as a serious contender in the league, yet the financial landscape for many teams appears bleak. A recent study, commissioned by NASCAR, projected a loss for more than 70% of teams in 2024. This should raise alarm about the overall sustainability of the sport if it continues with business as usual.
NASCAR’s charter system ensures cars a place in each of 38 races and comes with clearly outlined payouts that come from a weekly purse. Jordan and Hamlin argue the reality is that the system disproportionately rewards just a few at the expense of others. Their antitrust suit claims that NASCAR has reaped hundreds of millions of dollars off the backs of its most important asset, its racing teams.
The case that is getting the most national headlines may be the one taking place in Charlotte, North Carolina. This is mostly because of the high-profile plaintiffs in question, and of course because Goldman Sachs believes NASCAR to be worth a whopping $5 billion. The France Family Trust has essentially controlled NASCAR since its inception. Recently, investigations revealed they were paid over $400 million in coverups and settlements over three years, calling into question systemic inequity in the storied organization.
That trial is still underway, with Judge Kenneth Bell as the current presiding judge. Yet, during the first day of proceedings, dozens of potential jurors were removed. Their neutrality was almost immediately challenged, mostly because of Michael Jordan’s overwhelming star power. Legal expert Jeffrey Kessler represents the plaintiffs and articulated their position:
“What the evidence is going to show is Mr France ran this for the benefit of his family at the expense of the teams and sport.” – Jeffrey Kessler
Kessler emphasized that this case aims to reveal more than just financial discrepancies. It seeks to demonstrate NASCAR’s cultural significance and its broader implications for stakeholders involved.
“Now we’re going to show the world Nascar is not only a sport, but it’s a culture.” – Jeffrey Kessler
Stephenson remarked that:
“The France family built NASCAR from nothing. They are an American success story.” – Johnny Stephenson
The potential implications of this litigation could be enormous. A favorable ruling for Jordan and his co-plaintiffs may lead to significant changes in NASCAR’s operational framework, potentially altering how the sport is run today. Those results may include everything from fixing the charter system to a complete overhaul of the business model for racing teams.
Opponents and proponents of this lawsuit will be watching closely as it proceeds. They will focus especially on how it affects the drivers at 23XI Racing, and the overall NASCAR community. The stakes are nothing short of historic. A win for Jordan and his co-owners would change their lives and allow most of the sad sacks that currently make up NASCAR’s field to hope for a better day.