Michael Jordan's Race Team Among Two NASCAR Cup Teams Suing NASCAR
23XI Racing, a team co-owned by NBA legend Michael Jordan, and Front Row Motorsports have jointly filed an antitrust lawsuit against NASCAR in federal court in North Carolina. 23XI Racing and Front Row Motorsports were the two holdouts in the NASCAR Charter Agreement, which was signed by every other organization in the NASCAR Cup Series last month.
In the lawsuit filing, the two teams allege that the case is about, "the unlawful monopolization of premier stock car racing by the France family in order to enrich themselves at the expense of the premier stock car racing teams..."
The lawsuit filing goes on to allege that NASCAR and its CEO Jim France have used, "anticompetitive and exclusionary practices," to "enrich themselves at the expense of the premier stock car racing teams."
According to the lawsuit, the teams feel NASCAR and the France family have violated Section 2 of the Sherman Anti-Trust Act (1890) by running a monopsony over the relevant market for premier stock car racing
teams.
Additionally, the teams feel NASCAR and the France family have violated Section 1 of the Sherman Anti-Trust Act which states, "Every contract, combination in the form of trust or other- wise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal."
23XI Racing and Front Row Motorsports have retained attorney Jeffrey Kessler, who has been integral in several sporting league lawsuits including the one that led to the formation of NFL free agency. Sports Business Journal named Kessler to the 2021 list of the Most Influential People in Sports Buisness.
Following the lawsuit filing becoming public record, 23XI Racing and Front Row Motorsports issued a joint statement.
"We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. 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."
Michael Jordan, who won six championships in the NBA as a player, says he has always done whatever it takes to win, and that this lawsuit shows he will do whatever it takes to fight for the race teams in NASCAR.
"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," Jordan said in a statement. "I love the sport of racing and the passion of our fans, but the way NASCAR is 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."
Additionally, Front Row Motorsports team owner Bob Jenkins said, "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. 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."
NASCAR has yet to comment on the joint antitrust lawsuit filing from 23XI Racing and Front Row Motorsports.
The Charter Agreement negotiations are the crux of the disagreement between NASCAR and the two race teams, which have filed the antitrust lawsuit. Throughout the negotiation period, the teams have attempted to collectively bargain a better deal for their side of the revenue sharing pie, as even the top teams in the sport such as Hendrick Motorsports have publicly stated that they haven't turned a profit in more than a decade.
According to numerous sources, who spoke to Racing America on SI under the condition of anonymity, NASCAR put teams in a bind heading into the race weekend at Atlanta Motor Speedway, the same weekend where all but two teams signed the Charter Agreement. The sources indicate that NASCAR threatened full Charter revocation if the teams didn't sign the agreement by midnight ET on Friday, September 6.
Section 20 of the introduction of the lawsuit filed on Wednesday morning mentions the "Take-it-or-leave-it" deal offered by NASCAR.
What happens next remains to be seen, but we are currently chartering through unchartered territory in the world of NASCAR.
Toby Christie is the Editor-in-Chief of Racing America. He has 15 years of experience as a motorsports journalist and has been with Racing America since 2023.