NBA Legend Michael Jordan’s Lawsuit Against Nascar
Michael Jordan, the iconic NBA player, has filed a lawsuit against Nascar, the largest motorsports organization in the U.S., alleging it operates an illegal monopoly that has financially harmed his partially owned team.
On the trial’s initial day, Jordan attended the courtroom, where he listened to heartfelt testimonies from Denny Hamlin, a three-time Daytona 500 champion and co-owner of Jordan’s 23XI Racing team. Alongside Hamlin and Front Row Motorsports, Jordan claims Nascar has illegally profited by limiting opportunities for teams.
Details of the Lawsuit
The lawsuit, initiated in October 2024, is currently overseen by Judge Kenneth Bell in Charlotte, North Carolina. Jordan’s 23XI and Front Row Motorsports argue that Nascar constrains innovation and profits by mandating that teams use the company’s Next Gen cars and purchase parts from only Nascar-certified suppliers. They contend that Nascar’s dominance extends control over racing series rules and has imposed exclusivity clauses, which stifle competition.
A significant issue in the suit concerns Nascar’s charter agreement system, which is akin to franchise systems in other sports but operates as contracts that can be renewed or revoked. These charters guarantee entry into all 38 Nascar races and specify payouts, yet the plaintiffs have called their terms unjust. They seek a more equitable revenue share and wish for the charters to become permanent.
Claims of Financial Distress
In his opening statement, attorney Jeffrey Kessler highlighted that Front Row Motorsports’ Bob Jenkins has not made a profit since establishing his team in 2004, despite winning the Daytona 500 in 2021. Citing a Nascar-commissioned study, Kessler stated over 70% of teams reported losses in 2024, while nearly $400 million was transferred to the France Family Trust, which owns Nascar, now valued at $5 billion.
Anticipated Trial Outcomes
The trial is expected to last around two weeks, culminating in a verdict from six jurors. Concerns over impartiality led to multiple jurors being dismissed, including one who admitted to being a fan of Jordan. Both Front Row Motorsports and 23XI are seeking significant damages to address legal costs and the financial impact of not having charters this year.
Implications for Nascar
Should Nascar successfully defend itself, the outcome could jeopardize the future of 23XI, Front Row, and their six cars, potentially pushing them out of business as their charters lie with Nascar. Conversely, a win for the plaintiffs might reshape Nascar’s operational model, possibly leading to significant changes in its structure and the charter system.
Michael Jordan’s Involvement in Nascar
Jordan is the majority owner of 23XI Racing, co-owned by Denny Hamlin and business advisor Curtis Polk. They invested $20 million to acquire the team in 2020, initially racing with one car and driver, Bubba Wallace. Today, 23XI has escalated to three Cup Series cars, with Tyler Reddick and Wallace as key drivers, achieving 10 victories and multiple playoff appearances.
Celebrity Influence in Nascar
Numerous celebrities have ventured into Nascar ownership, including artist Pitbull, who co-owns Trackhouse Racing. He aimed to showcase Nascar as not just a sport, but a culture. Similarly, Lebron James has also entered the arena, partnering with Fenway Sports Group, which co-owns Roush Fenway Racing. He publicly supported Wallace during an investigation linked to a noose found in Wallace’s stall, which concluded no hate crime had occurred.
