Michael Jordan, second racing team sue NASCAR

CHARLOTTE — Two NASCAR teams — one of them owned by Michael Jordan — filed a federal antitrust lawsuit against the stock car series and its chairman, Jim France, on Wednesday, claiming the new charter system limits competition by unfairly binding teams to the series, its tracks and its suppliers.

23XI Racing and Front Row Motorsports filed suit in the Western District of North Carolina in Charlotte after two years of contentious negotiations between the privately owned National Association for Stock Car Auto Racing and the 15 charter-holding organizations in the series’ top Cup Series.

“The France family and NASCAR are monopolistic bullies,” the teams said in the lawsuit, a copy of which was obtained by The Associated Press. “And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. That moment has now arrived.”

NASCAR presented its final offer in early September on what is essentially a revenue-sharing model; 13 organizations signed, with most saying they did so under duress or felt threatened into doing so.

But 23XI Racing, the team co-owned by Jordan and veteran driver Denny Hamlin, and the smaller Front Row team refused to sign. They hired Jeffrey Kessler, a top antitrust attorney who has represented the players in all four major professional North American sports, helped push the NCAA toward an era of paid college athletes and won a landmark equal pay settlement for members of the U.S. national women’s soccer team.

The lawsuit seeks details from NASCAR and France “related to their exclusionary practices and intent to insulate themselves from any competition.” Kessler said he would ask for a preliminary injunction that will enable the two teams to compete in 2025 under the new charter agreement while the litigation proceeds.

The teams said they will seek treble damages for anti-competitive terms that have ruled the sport since the initial 2016 charter agreement.

“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,” said Jordan, the retired NBA superstar. “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. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”

A spokesman for NASCAR, which is based in Daytona Beach, Florida, said the series does not comment on pending litigation.

The charter system introduced in 2016 included revenue sharing and other elements of the business for the top motorsports series in the United States while guaranteeing 36 entries in every lucrative Cup Series race. Of the 19 team owners who were originally granted charters in 2016, the lawsuit says, only eight remain in the sport.

One of the departing teams was Furniture Row Motorsports, which sold its charter for $6 million at the end of the 2018 season — a year removed from winning the Cup Series championship — proof, the plaintiffs say, that the charters left the teams without a path to profitability.

The original charters lasted from 2016 through 2020 and were automatically renewed to continue through Dec. 31, 2024. With expiration looming, teams argued the revenue sharing is unfair and demanded a larger share of the pot.

Front Row owner Bob Jenkins has maintained he’s never turned a profit since forming his team in 2005. He won the Daytona 500 in 2021 with driver Michael McDowell, but failed to break even in that banner season.

With four sons and a desire to leave something for his family to run, Jenkins said he wants a fair agreement.

“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,” Jenkins said. “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.”