Michael Jordan has fired the first shot across the bow of NASCAR.
It’s not a basketball but a lawsuit aimed at challenging the monopoly of NASCAR and the entity controlled by the France family.
Jordan and Denny Hamlin’s 23XI Racing and Bob Jenkins’ Front Row Motorsports, two organizations from the NASCAR Cup Series that have yet to agree to the charter deal set to take effect in 2025, have initiated an antitrust lawsuit against NASCAR and its chairman, Jim France.
The lawsuit claims that by preventing the establishment or expansion of rival premier stock car racing leagues, NASCAR has coerced teams into accepting unfavorable economic terms to compete at the highest level of stock car racing in the U.S.
It alleges that the France family has achieved monopoly-level profits through their ownership and control of the National Association for Stock Car Auto Racing, which has exploited its position as the singular premier stock car racing authority in the country.
The lawsuit, filed in federal court in North Carolina, was somewhat anticipated. Renowned antitrust lawyer Jeffrey Kessler, who played a crucial role in enabling college athletes to benefit financially from their name, image, and likeness, is representing the teams.
Jordan co-owns 23XI Racing alongside Hamlin; together they have established a 114,000-square-foot racing facility and field cars driven by Tyler Reddick and Bubba Wallace. Meanwhile, Front Row Motorsports is owned by Jenkins, who fields cars for Michael McDowell and Todd Gilliland. Both teams plan to expand to three cars in 2025 by acquiring a charter from Stewart-Haas Racing.
“I’ve always been a fierce competitor, and that desire to win fuels me and the entire 23XI team every week on the track,” Jordan shared in a statement. “I have a deep love for racing and the enthusiasm of our fans, but the current operations of NASCAR are inequitable to teams, drivers, sponsors, and fans.
“Today’s actions demonstrate my commitment to advocating for a competitive market where everyone has the opportunity to succeed.”
NASCAR is a privately owned entity belonging to the France family, specifically Jim France and his niece, Lesa France Kennedy.
A NASCAR spokesperson stated that the organization had no immediate remarks since the lawsuit was just filed Wednesday morning and they were in the process of reviewing the complaint.
In a press conference Wednesday morning with reporters, Kessler pointed out that this case mirrors other antitrust lawsuits in sports where a fundamentally unjust system has been established for participants. However, this situation features a significant distinction: the control NASCAR has under the France family.
“No other major sport is governed by one family as if it were their own private cash cow like NASCAR,” Kessler stated.
“We will see how this influences their defense strategy. We will also see its effect on the potential for settling the case or whether it will require full litigation—we are ready to take any necessary steps to initiate change.”
One of the stipulations within the 2025 charter agreement mandates that teams waive their antitrust claims against NASCAR. The teams are seeking a temporary injunction to compete as chartered teams in 2025 while pursuing the lawsuit.
“We are united by a love for racing, the thrill of the competition, and the pursuit of victory,” 23XI and Front Row expressed in a joint statement. “Beyond racing, we believe that change is critical for the sport we cherish.
“We have joined forces to launch this antitrust lawsuit to ensure that racing can flourish and evolve into a more competitive and equitable sport that will benefit teams, drivers, sponsors, and, most importantly, fans.”
Both teams affirmed their commitment to their plans for 2025.
“The France family and NASCAR are monopolistic bullies. They will continue to impose their will on others until their victims stand up and refuse to be bullied,” the lawsuit claims. “That moment has now arrived.”
This lawsuit represents the culmination of a couple of years’ worth of frustration over charter renewal discussions. NASCAR introduced the charter system in 2016, awarding 36 charters to teams. These charters—NASCAR’s equivalent of franchises—guarantee a spot in every weekly race, alongside a baseline purse along with additional payouts predicated on the charter’s past three-year performance and championships.
The current agreement with the teams is set to expire at the end of this year. Teams have engaged in negotiations with NASCAR over the past couple of years, with NASCAR initially having discussions with a panel of team executives before opting to negotiate directly with individual teams instead. On September 6, according to the lawsuit, NASCAR issued its final offer to the teams at 5 p.m., providing them just one hour to respond and subsequently extending the deadline to midnight.
Only Front Row and 23XI chose not to sign. The lawsuit contends that teams feared losing their charters. Charter prices have soared recently, with reports indicating that Spire Motorsports paid close to $40 million for one last year.
Kessler asserts that the fact other teams agreed to the charter deal does not diminish the validity of 23XI and Front Row’s claims.
“In every antitrust situation, the victims are often left with no choice but to take whatever they can get,” Kessler noted. “Players without free agency often accept contracts.
“That doesn’t imply they are willing to play under unfair conditions. Sometimes it takes a few to have the courage, resources, and desire to say, ‘We will no longer stand for this.’ This will ultimately benefit everyone.”
The lawsuit argues that because NASCAR owns the majority of the racetracks and that its contracts with these facilities prohibit similar stock-car racing events, alongside the mandate for teams to purchase parts from specific vendors, the teams’ earnings are less than they would achieve in a free market. It also claims that the new agreement undermines the rights to team intellectual property. The teams seek permanent charters as the 2025 agreement is said to span seven years.
“It has become clear that antitrust litigation is the only pathway to liberate the market for competition and allow plaintiffs and other stock car racing teams to secure fair charter conditions that reflect a competitive marketplace for their services as premier stock car teams,” the lawsuit claims.
“A competitive marketplace would enable the teams to secure reasonable profits necessary for reinvestment into their operations, thereby creating an even more thrilling product.”
Under the existing television agreement, teams receive 25 percent of revenues, while tracks get 65 percent and NASCAR retains 10 percent. Subsequently, the tracks and NASCAR add more funds to the prize pool. The teams maintain that they are entitled to a larger share overall.
“I have been part of the racing community for two decades and take immense pride in Front Row Motorsports and our achievements,” Jenkins stated in a release. “However, the time for change is upon us.
“We require a more competitive and equitable framework where teams, drivers, and sponsors are rewarded for our collective investment by creating enduring enterprise value, similar to what other successful professional sports leagues achieve.”
23XI co-owner Curtis Polk emphasized that the lawsuit goes beyond the charter agreement itself.
“Today’s action addresses more than just charters,” Polk mentioned during a conference call with reporters. “Due to their unprecedented power and willingness to wield it, the France family has dictated every component of stock car racing in America, including the gas and tires we utilize, the parts we are obligated to procure for the cars, our schedules, the regulations, the tracks we race on, the fees we must pay to compete, and how our races are viewed by the public.
“This control has led to a significant negative impact on team profitability, enterprise value, and the salaries of drivers, crew, and race shop employees.”
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