Michael Jordan and his NASCAR team joined an on-track competitor in filing a lawsuit Wednesday accusing the stock car racing giant and the family that controls it of antitrust violations under the federal Sherman Act.
“The France family and NASCAR are monopolistic tyrants,” the lawsuit says. “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.
The lawsuit was filed in federal court in North Carolina by a legal team acting on behalf of 23XI Racing, a team formed in 2020 and co-owned by Jordan, and Front Row Motorsports, which has competed on the circuit since 2004. 23XI is also partly owned by Denny Hamlin, a 54-time Cup Series winner who drives for Joe Gibbs Racing.
The defendants in the lawsuit were NASCAR and its CEO, Jim France, son of Bill France Sr., who founded NASCAR in 1948 and whose family has controlled it ever since. This differentiates NASCAR, the lawsuit notes, from comparable sports leagues such as the NFL and NBA, which are “owned and operated by their teams.”
NASCAR teams essentially operate as independent contractors who guarantee entry to races on the circuit via charters, legal agreements that for many years lasted only one year, leaving teams with little financial stability to long term. In 2016, after many teams came together to negotiate with NASCAR as a group, the charter contract was extended for a four-year term, which was renewed in 2020. With the current term set to expire at the end of This year, NASCAR engaged in what the lawsuit describes as pressure tactics to obtain agreement on a new charter even more favorable to France – and to the alleged detriment of the teams – than the previous version.
NASCAR, per the lawsuit and as reported elsewhere, last month gave teams an ultimatum to sign during a brief window before the start of the playoffs or risk not having a charter for 2025. All except 23XI Racing and Front Row Motorsports complied, with Hendrick Motorsports owner Rick Hendrick saying at the time that he was “just tired” after months of negotiations.
In a joint press release on Wednesday, the two teams said the “unfair clauses” of the 2016 and 2025 charters were “at the heart” of the legal action. Among the “anti-competitive practices” attributed to NASCAR by teams, the most notable were:
– “Buy the majority of major racetracks exclusive to NASCAR races
– “Impose exclusivity agreements on racetracks sanctioned by NASCAR
– “Acquisition of the Automobile Racing Club of America (ARCA), the stock car racing series’ only notable competitor
– “Prevent teams from competing in other stock car races, while retaining ownership of Next Gen parts and cars
– “Require teams to purchase their parts from single suppliers chosen by NASCAR.”
The terms of the charter, the lawsuit says, caused teams to “struggle to make a reasonable profit while investing the tens of millions of dollars” needed to compete at the highest level of stock car racing. Running a team in the top-tier Cup Series was estimated to cost around $18 million a year, not including driver salaries.
The lawsuit notes that of the 19 team owners who signed the 2016 charter, only eight remain in the sport. Meanwhile, the France family is said to have “profited greatly,” notably through broadcast contracts totaling $23.1 billion over the past 24 years.
“Everyone knows I have always been a fierce competitor,” Jordan said in a statement, “and that drive to win is what motivates me and the entire 23XI team every week on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to the teams, drivers, sponsors and fans. Today’s action shows that I am. ready to fight for a competitive market where everyone wins.
NASCAR has made no public comment, pointing (via Associated Press) to ongoing litigation. The track’s headquarters is in Daytona Beach, Florida, but it also has offices in Charlotte. In explaining its North Carolina filing, the lawsuit noted that NASCAR conducts a significant portion of its business in that state.
Among the lawyers at Chicago-based Winston and Strawn LLP who filed the suit was Jeffrey Kessler. Kessler has been involved in a number of labor actions in the sports world, including working on behalf of the NFL players’ union, NCAA athletes and members of the state women’s national soccer team. -United.
Front Row Motorsports, owned by Bob Jenkins, and 23XI said they would seek a preliminary injunction allowing them to race next year under the new charter agreement while continuing their antitrust litigation.
“I have been a part of this racing community for 20 years and I could not be more proud of the Front Row Motorsports team and our success. But the time has come for change,” Jenkins said in a statement. “We need a more competitive and fair system in which teams, drivers and sponsors can be rewarded for their collective investment in creating long-term corporate value, just like in any other successful professional sports league .”
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