In 2020, Michael Jordan brought his fierce competitiveness to the NASCAR industry. He partnered with driver Denny Hamlin and launched 23XI Racing as a majority shareholder.
They purchased a charter that guaranteed them a spot in the top-tier Cup Series, turning Jordan’s longtime fandom and passion into a business opportunity. Since his arrival, the team has been semi-competitive, winning nine NASCAR Cup races.
Advertisement
However, in October 2024, Jordan and his team filed a lawsuit against NASCAR for allegedly operating a monopoly in its highest racing series, essentially having complete control over the entire market through its owners, the France and Smith families.
The appropriate lawsuit says that NASCAR limits teams to a single parts supplier that they own and decide which roads they purchase, not allowing any other organization to race on those same roads. Additionally, the suit alleges that NASCAR restricts teams from competing in other racing series, thereby preventing outside competition.
As a result, teams are struggling to turn a profit, as the current revenue structure is the lowest in all sports; only 25 percent of revenue goes to the teams involved. Each team receives about $10 million a year, but the cost of racing is almost double that amount, ranging from $18 million to $20 million. Essentially, teams have to secure sponsorships to make up for losses, just to break even.
Advertisement
“Everyone knows I’ve always been a fierce competitor, 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 marketplace where everyone wins.“, said Jordan after filing a complaint in 2024.
NASCAR Arguments
Due to the facts exposed, Jordan and his team rejected the new charter contract, which they believe is linked to the entire unfair system. In response to the lawsuit, NASCAR said MJ and his team were looking for a charter that no one else has and that lasts longer.
Advertisement
Another argument made is that the teams haven’t really suffered any actual damages because they can still participate as “open” teams, i.e. without a charter, while the lawsuit is ongoing.
With this, NASCAR said it has increased payments to teams under a new lease deal, implying it is doing justice to the teams, rather than not doing so.
“They make bold announcements that ignore the evidence. The real issue is the plaintiffs’ claim that something is anti-competitive for something they signed up to,» Chris Yates, NASCAR attorney said.
Advertisement
Related: Three billionaires top the list of 10 richest NBA players in 2025
Current status of the trial
The case has reached several key procedural milestones to date. Judge Kenneth Bell denied the request for a preliminary injunction that would have temporarily restored the charter status of Jordan and his team.
The court defined the definitive market as “premier stock car racing,” reinforcing the argument that NASCAR has a monopoly in this specific segment. The judge also authorized a full discovery involving the financial aspects of the major team owners, Rick Hendrick and Roger Penske, denying requests for an exemption.
Advertisement
“The trial of this matter will be publicly and fairly contested in accordance with applicable rules and laws, without regard to the notoriety of the companies and individuals involved. No company or individual will receive special treatment,” said Bell on November 11, 2025.
The full trial is scheduled and is expected to begin on December 1, 2025.
Related: Steph Curry to Follow in Michael Jordan’s Footsteps With Under Armor Split
This story was originally reported by Basketball Network on November 20, 2025, where he first appeared in the Off the field section. Add Basketball Network as Favorite source by clicking here.
