CHARLOTTE, North Carolina (AP) — Michael Jordan fierce fight against NASCAR heads to federal court Monday for a jury trial that could tear apart America’s top motorsports series.
THE antitrust allegations The attack launched by 23XI Racing and Jordan-owned Front Row Motorsports exposed salacious personal communications, NASCAR’s finances and deep contempt between some of the sport’s top executives and its participants.
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Three-time Daytona 500 winner Denny Hamlin, who owns the 23XI alongside Jordan and won the Cup Series championship less than a month ago. slip through his fingerswarned over the weekend that the gloves would be off during the two-week trial in the Western District of North Carolina.
“Our fans have been brainwashed with (NASCAR’s) arguments for decades,” Hamlin wrote on social media. “The lies are over from Monday morning. It’s time for truth. It’s time for change.”
NASCAR Commissioner Steve Phelps says the series has tried hard settle THE case before Monday’s trial.
What is the trial about?
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The lawsuit was filed by 23XI Racing, which is owned by the Basketball Hall of Famer. Jordan, Curtis Polk, Hamlin and Jordan’s longtime business manager. They were joined by Front Row Motorsports, a team owned by entrepreneur Bob Jenkins that won the 2021 Daytona 500. The two were the only teams out of 15 to refuse to sign renewals on the charter agreements that NASCAR presented to them at the end of 2024.
The 15 teams fought for more advantageous conditions in the charter agreements during more than two years of negotiations, and the final terms did not meet what the teams were looking for. 23XI and Front Row accused NASCAR of being a monopoly and sued on antitrust grounds.
What is a charter?
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 that car a place in the 40-car field for all 38 races, as well as a set payout on the weekly purse.
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Even with the charters, teams have argued that the revenue model is unsustainable. The teams wanted the charters to become permanent (they are renewable and revocable), a greater percentage of revenue and a voice in governance.
23XI and Front Row believed that the new charter agreements did not meet these requirements and refused to sign them. Both organizations argue that NASCAR has too strong a grip on all aspects of the racing series and allege a monopoly based on exclusivity clauses, ownership of most race tracks on the Cup schedule and its control of the 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 suffered this year due to the non-chartering and the lawsuit.
The defense of NASCAR
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NASCAR was founded 76 years ago by the Florida-based French family and claims it did not violate antitrust law because it did nothing to restrict trade beyond normal business practices.
NASCAR argued that payments under the 2025 charter contract had increased and proved it was not anti-competitive. NASCAR also discussed the possibility of cars entering races as “open teams” and trying to place in one of four unsanctioned spots in terms of qualifying speed. 23XI and Front Row were open teams, and even though their combined six cars competed in every race, it cost both organizations millions of dollars in purse money.
The pre-trial discovery process revealed that NASCAR earned more than $100 million in 2024.
Behind the scenes drama
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THE discovery phase was brutal for both parties with the revelation of inappropriate personal communications from top NASCAR executives as well as both teams.
Phelps was among executives who, in a discussion with other NASCAR executives, called Hall of Fame team owner Richard Childress a “dinosaur,” an “idiot” and a “stupid redneck.” The discussion also included a reference that Childress “owes his entire fortune to NASCAR” and should be “taken out and whipped.”
Another NASCAR executive alleged that the sport’s fans can’t read, and several series executives berated Hall of Fame driver Tony Stewart’s summer short track series, SRX, and threatened to kill it because NASCAR drivers competed in it.
On the other side, the president of 23XI reportedly said that NASCAR president Jim France had to die to receive favorable charter terms, Hamlin admitted his dislike for the France family, one of Jordan’s advisors said Hamlin was not a good businessman, and Jordan joked that he lost more money in a casino than he paid one of his drivers.
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Who will be in court?
NASCAR has indicated it wants Rick Hendrick and Roger Penske, the two most powerful team owners in the United States, and neither Hall of Famer wants to testify. They both filed a petition asking not to even be impeached, and if they must be, then the questioning should be limited to the charters.
Hendrick and Penske are part of a large ownership group that declarations submitted on behalf of NASCAR in defense of the charter system. The statements showed unity among non-suing teams, who do not want the charter system dissolved, which could happen if NASCAR loses the lawsuit.
But what NASCAR doesn’t highlight is that many of the team owners noted, however, that the 2025 charter agreements still do not meet all of their demands.
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Additionally, NASCAR requested that certain plaintiffs not be allowed to sit in court during the trial. The request is believed to be so 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, along with Hamlin, would not have the opportunity to distract a jury.
No decision had been made as of Sunday afternoon on who could sit on the court.
What are the results
The case could still be settled at any time, even if a decision is made and she appeals.
If 23XI and Front Row win, the jury will determine actual monetary damages and Judge Kenneth Bell may adjust the figure and even triple it. Bell would also be responsible for dismantling any monopolies discovered.
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Among the threats facing NASCAR are orders that the France family sell the sport, sell the tracks they own, dismantle the charter system, order permanent charters – anything is possible.
If NASCAR wins, 23XI and Front Row are unlikely to remain in business beyond 2026 and the six charters set aside will likely be sold to other interested parties. The last charter sold cost $45 million, and NASCAR has indicated there is pressing interest from potential buyers, including private equity firms.
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AP Auto Racing: https://apnews.com/hub/auto-racing
