Michael Jordan’s fight against NASCAR heads to court : NPR

CHARLOTTE, N.C. — Michael Jordan's bitter fight against NASCAR will head to federal court Monday in a jury trial that could tear apart the top motorsports series in the United States.

Antitrust charges brought against Jordan-owned 23XI Racing and Front Row Motorsports has exposed salacious personal connections, NASCAR's finances and the deep disdain between some of the sport's top executives and its participants.

Three-time Daytona 500 winner Denny Hamlin, who co-owns the 23XI with Jordan and let the Cup Series championship slip through his fingers less than a month ago, warned this weekend that the gloves will come off during two weeks of testing in the Western District of North Carolina.

“Our fans have been brainwashed by (NASCAR) talking points for decades,” Hamlin. wrote on social networks. “As of Monday morning, the lies are over. It's time for the truth. It's time for change.”

NASCAR commissioner Steve Phelps said the series made every effort to settle the case ahead of Monday's trial.

What is the lawsuit about?

The lawsuit was filed by 23XI Racing, which is owned by Basketball Hall of Famer Jordan Hamlin and Jordan's longtime business manager Curtis Polk. They were joined by Front Row Motorsports, the team owned by entrepreneur Bob Jenkins, which won the 2021 Daytona 500. The two teams were the only teams out of 15 that refused to sign charter extensions presented to them by NASCAR at the end of 2024.

All 15 teams fought for better charter terms over more than two years of negotiations, and the final terms were not what the teams sought. 23XI and Front Row accused NASCAR of monopoly and sued under antitrust laws.

What is a charter?

The charter system was introduced in 2016 and is a version of the NASCAR franchise model used by most other professional sports leagues. Having a charter guarantees that car a spot in the 40-car field in all 38 races, as well as a certain payout from the weekly purse.

Even with regard to charters, teams argued that the revenue model was unsustainable. The teams wanted permanent charters (they could be renewable or revocable), a larger percentage of revenue, and voting rights in management.

23XI and Front Row felt that the new charter agreements did not meet these requirements and refused to sign them. Both organizations argue that NASCAR has too much control over all aspects of the racing series and claim a monopoly based on exclusivity clauses, ownership of the majority of race tracks on the Cup schedule and control over rules and regulations.

23XI and Front Row are now also seeking a large sum of money from NASCAR to cover their legal fees and financial losses incurred this year due to the lack of a charter as well as the lawsuit.

NASCAR defense

NASCAR was founded 76 years ago by a French family in Florida and says it did not violate antitrust laws because it did nothing to restrict trade outside its normal business practices.

NASCAR argues that payouts under the 2025 charter agreement are increased, proving it is not anti-competitive. NASCAR also floated the possibility of cars racing as “open teams” and trying to fill one of the four unscheduled qualifying speed spots. 23XI and Front Row were open teams, and although their six cars entered every race, it cost both organizations millions of dollars.

During the pre-trial investigation, it was revealed that NASCAR earned more than $100 million in 2024.

Behind-the-scenes drama

The disclosure phase proved brutal for both sides, as salacious personal messages from top NASCAR executives as well as both teams were revealed.

Phelps was among executives who, in conversations with other NASCAR executives, called Hall of Fame team owner Richard Childress a “dinosaur,” an “idiot” and a “stupid redneck.” The discussion also mentioned that Childress “owes his entire fortune to NASCAR” and should be “taken back and flogged.”

Another NASCAR executive said the sport's fans can't read, and several series leaders reprimanded Hall of Fame driver Tony Stewart's summer short track series, SRX, and threatened to destroy it because it featured NASCAR drivers.

On the other hand, 23XI's president was found to have stated that NASCAR chairman Jim France had to die to get favorable charter terms, Hamlin admitted his dislike of the France family, one of Jordan's advisers said Hamlin was not a good businessman, and Jordan joked that he loses more money at casinos than he pays one of his drivers.

Who will be in court?

NASCAR has said it wants Rick Hendrick and Roger Penske, two of the most powerful team owners in the United States, and neither Hall of Famer wants to testify. Both of them filed a motion that they should not even be removed, and if necessary, the questioning should be limited to the statutes.

Hendrick and Penske are among a large group of owners who have filed briefs on behalf of NASCAR in defense of the charter system. The statements showed unity among the teams not suing who don't want the charter system dismantled, which could happen if NASCAR loses the case.

But what NASCAR isn't paying attention to is that many team owners still note that the 2025 charter agreements still don't meet all their needs.

In addition, NASCAR requested that certain plaintiffs not be allowed to appear in court during the trial. The request is believed to be intended to ensure that Jordan, a North Carolina native who led the University of North Carolina to a national championship and once owned the NBA's Charlotte Hornets as well as Hamlin, would not be able to distract the jury.

As of Sunday afternoon, no decision had been made on who could sit in court.

What are some results

The case can still be settled at any time, even if a judgment is entered and it goes to appeal.

If 23XI and Front Row win, the jury will determine the actual monetary award, and Judge Kenneth Bell could adjust that figure and even triple it. Bell will also be charged with disclosing any monopoly discovered.

NASCAR's threats include ordering the France family to sell the sport, sell the tracks it owns, dismantle the charter system, order permanent charters – anything is possible.

If NASCAR wins, it is unlikely that 23XI and Front Row will remain in business beyond 2026, and the six remaining charters will likely be sold to other interested parties. The last charter sold was worth $45 million, and NASCAR has indicated growing interest from potential buyers, including private equity firms.