Michael Jordan’s fight against NASCAR takes to the court

CHARLOTTE, N.C. — Michael Jordan’s bitter battle with NASCAR’s chiefs ended in federal court Monday in a jury trial that could tear apart the top motorsports series in America.

Allegations of antitrust by Jordan-owned 23XI Racing and Front Row Motorsports have exposed personal connections, a deep-seated disdain for NASCAR’s finances and the sport and some of its participants.

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

“Our fans have been brainwashed with (NASCAR’s) talking points for decades,” Hamlin wrote on social media. “Monday morning the lies are over. It’s time for the truth. It’s time for change.”

NASCAR Commissioner Steve Phillips said the series has tried to settle the case before Monday’s trial.

What about the case?

The lawsuit was filed by 23XI Racing, which is owned by basketball Hall of Famer Jordan, Hamlin and Jordan’s longtime business manager Curtis Pollock. They joined Front Row Motorsports, a team owned by entrepreneur Bob Jenkins that won the 2021 Daytona 500. Two of the 15 teams were the only ones that declined to renew the charter contracts offered to them by NASCAR at the end of 2024.

All 15 teams fought for more favorable terms in more than two years of negotiated charter contracts, and the final terms fell short of what the teams were seeking. 23XI and Front Row accused NASCAR of being a monopoly and sued on antitrust grounds.

The charter system was introduced in 2016 and is NASCAR’s version of the franchise model used by most other professional sports leagues. Being chartered guarantees a car a spot in the 40-car field for all 38 races, as well as a fixed payment from the weekly purse.

Even with charters, teams have argued that the revenue model is not viable. Teams want charters to be permanent (they are renewable and non-renewable), a large percentage of revenue and a voice in governance.

23XI and Front Row felt that the new charter agreement fell short of meeting these demands and refused to sign. Both organizations maintain that NASCAR has strong control over all aspects of the racing series and has a monopoly based on exclusive provisions, ownership of most of the racetracks on the Cup schedule, and rules and regulations.

23XI and Front Row are now pursuing a large monetary settlement from NASCAR to cover their legal fees and financial damages for not being chartered and sued this year.

NASCAR was founded 76 years ago by the Florida-based French family and says it has not violated antitrust laws because it has done nothing to prevent commerce outside of normal business practices.

NASCAR has argued that the payments in the 2025 charter contract have increased and proved that it is not competitive. NASCAR has also referred to the option for cars to enter the race as “open teams” and try to make the field in one of the four unchartered spots at the qualifying pace. 23XI and Front Row are open teams, and while they field a combined six cars per race, both organizations spend millions of dollars in purse money.

A preliminary discovery process revealed that NASCAR earned more than $100 million in 2024.

The discovery phase has been brutal for both sides with NASCAR’s top executives and both teams exhibiting unusual personal connections.

Phelps was among the leadership who called Hall of Fame team owner Richard Childers a “dinosaur,” an “idiot” and a “stupid redneck” in an argument with other NASCAR executives. The discussion also included a reference to Childress “owing all his fortune to NASCAR” and needing to be “taken back and flogged.”

Another NASCAR executive charged that fans of the sport could not read, and several series leaders excoriated Hall of Fame driver Tony Stewart’s summer short track series, SRX, and threatened to kill it because NASCAR drivers were participating.

On the other hand, the president of 23XI has found that the chairman of NASCAR, Jim France, needs to die in order to obtain the appropriate charter conditions, Hamlin admitted his dislike for the French family, one of Jordan’s advisers said that Hamlin was not a good business and Jordan joked that he loses more money in a casino than one of his drivers pays.

NASCAR has indicated it wants Rick Hendricks and Roger Penske, two of the most powerful team owners in America, and neither Hall of Famer to testify. They both filed a motion not to be impeached either, and if they should be, then the inquiry should be limited to the charter itself.

Hendricks and Penske are among a large group of owners who filed a declaration on behalf of NASCAR in defense of the charter system. The announcements showed solidarity among the non-suing teams, which do not want the charter system to be dismantled, which could happen if NASCAR loses the case.

But, what is not the light of NASCAR is that many owners of the team have still noted that the 2025 charter agreement is still short of all their questions.

Additionally, NASCAR said that Polk and Hamlin of the 23XI were not allowed to sit in court before their testimony. No decision had been made as of Sunday morning.

Jordan, a North Carolina native who led the University of North Carolina to a national championship and once owned the NBA’s Charlotte Hornets, was granted immunity from being in the courtroom for the entire jury. Spokesmen for both teams said Jordan and Jenkins plan to face their case.

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

If 23XI and Front Row win, the jury will determine actual monetary damages and Judge Kenneth Bell can adjust the figure and even triple it. Bell will also be charged with ending any found monopoly.

Among the threats to NASCAR are orders that the French family sell the sport, sell its owners, end 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 charters will likely be sold to other interested parties. The last charter was sold for $45 million, and NASCAR has indicated interest from potential buyers including private equity firms.