CHARLOTTE, N.C. (AP) — The legal battle involving Michael Jordan’s 23XI Racing against NASCAR has escalated to a federal court trial, potentially affecting the landscape of the motorsport series in the United States.
Jordan’s team, 23XI Racing, alongside Front Row Motorsports, has accused NASCAR of antitrust violations, bringing to light personal communications and financial details within the organization. The trial, held in the Western District of North Carolina, is expected to last two weeks.
Denny Hamlin, co-owner of 23XI Racing, recently expressed his determination via social media, stating, “Our fans have been brainwashed with (NASCAR’s) talking points for decades. Lies are over starting Monday morning. It’s time for the truth. It’s time for change.”
NASCAR Commissioner Steve Phelps has indicated efforts to settle the case before the trial commenced.
The Core of the Lawsuit
23XI Racing, owned by Jordan, Hamlin, and Curtis Polk, along with Front Row Motorsports, have refused to renew charter agreements proposed by NASCAR. This refusal is rooted in the belief that the terms provided fall short of expectations after extensive negotiations. The lawsuit accuses NASCAR of monopolistic practices.
Understanding the Charter System
NASCAR’s charter system, introduced in 2016, is akin to a franchise model, ensuring a car’s spot in races and a share of the prize money. However, 23XI and Front Row argue that the current revenue model is unsustainable and seek permanent charters, greater revenue shares, and governance input.
The two teams are seeking compensation for legal expenses and financial losses due to their non-chartered status.
NASCAR’s Position
NASCAR, established by the France family, denies any antitrust violations. The organization argues that the increased payouts in the 2025 charter agreement demonstrate its competitive stance. NASCAR also highlights the option for teams to participate as “open teams,” competing for nonchartered spots based on qualifying speed.
Notably, NASCAR’s financial records revealed over $100 million in revenue for 2024 during pretrial proceedings.
Behind-the-Scenes Tensions
The discovery process has been contentious, exposing personal communications from NASCAR executives and the involved teams. Remarks from NASCAR leadership included derogatory comments about industry figures and threats against competing series.
Conversely, 23XI’s president was found to have made statements about NASCAR’s leadership, and Hamlin expressed disdain for the France family.
Key Figures in Court
NASCAR has called upon influential team owners Rick Hendrick and Roger Penske, both of whom have resisted testifying. They, along with other owners, have expressed support for the charter system while acknowledging shortcomings in the 2025 agreements.
Michael Jordan has been granted permission to attend the trial proceedings fully, representing his team’s interests.
Potential Outcomes
The case could be resolved at any point, even post-verdict and during appeals. A victory for 23XI and Front Row could lead to significant changes in NASCAR’s operations, including potential sales of the organization or its tracks and modifications to the charter system.
Should NASCAR prevail, 23XI and Front Row’s future in the sport looks uncertain beyond 2026, with available charters potentially being sold to new parties, including private equity firms.
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