In a significant move for the world of motorsports, Michael Jordan’s 23XI Racing, alongside Front Row Motorsports, has initiated an antitrust lawsuit against NASCAR and its CEO, Jim France. This legal action, filed on Wednesday in the Western District of North Carolina, targets alleged anti-competitive practices that the teams argue hinder fair competition within the sport.
In a joint statement, the two teams expressed their shared passion for racing and their commitment to improving the competitive landscape of NASCAR. “We believe change is essential for the sport we cherish,” they stated. “This lawsuit aims to promote a thriving environment in racing, benefiting teams, drivers, sponsors, and most importantly, the fans.” They hope that this action will pave the way for a more equitable and competitive racing scene.
The lawsuit outlines various anti-competitive practices by NASCAR, including the acquisition of a majority stake in leading racetracks, the purchase of the ARCA racing series, and policies that restrict teams from racing outside the NASCAR framework. Additionally, it alleges that teams are forced to procure supplies only from NASCAR-approved vendors, further entrenching NASCAR’s monopoly over the sport. The press release from 23XI Racing and Front Row Motorsports highlights that no other major North American professional sport is controlled by a single family benefiting from such monopolistic practices.
Central to the lawsuit is the revenue-sharing charter agreement instituted in 2016, which both teams have declined to renew. They contend that the terms of this agreement are unfair, demanding a larger share of the revenue pool. They are seeking treble damages for the adverse impacts these anti-competitive conditions have had on their operations under the existing charter system.
Founded in 2020 by Jordan, veteran driver Denny Hamlin, and Curtis Polk, 23XI Racing aims to make a significant mark in the competitive racing landscape. Front Row Motorsports, which has been active in NASCAR since 2005, shares similar ambitions. Jordan, an iconic figure in sports and a Hall of Fame basketball player, remarked, “My competitive spirit drives me and the entire 23XI team each week. While I love racing and our fans, the current operations of NASCAR are unfair to all stakeholders involved. This lawsuit signifies my commitment to advocating for a more competitive environment where everyone can succeed.”
As this case unfolds, NASCAR officials have yet to respond to the allegations. The outcome of this lawsuit could have far-reaching implications not only for the involved teams but also for the future landscape of the sport itself.