Sports
Michael Jordan files antitrust lawsuit against NASCAR
In May, NBA Hall of Famer Michael Jordan (owner of 23XI Racing) warned NASCAR that the way in which they were running the corporate was unfair to automotive owners and that “the sport would die” unless it modified its business practices and had a “good partnership.” ” Jordan has now filed an antitrust lawsuit with one other automotive owner, Front Row Motorsports, against NASCAR and CEO Jim France, stating that he used anti-competitive practices to stop fair competition in the game.
According to the lawsuit claims that NASCAR and France operate without transparency and in a way that doesn’t profit team owners, drivers, sponsors, partners and fans.
“Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in a way that benefits teams, drivers, sponsors and, most importantly, fans,” 23XI Racing and Front Row Motorsports said in an announcement in a joint report.
23XI Racing and Front Row Motorsports disagree that NASCAR controls all points of the business, including purchasing racetracks exclusively for its races and allegedly forcing teams to buy supplies from suppliers chosen by NASCAR from a single source. Another point of contention is the ban on teams from participating in other stock automotive races.
Jordan’s team was founded and joined NASCAR in 2020 with race driver Denny Hamlin and Jordan’s business partner, Curtis Polk. Bob Jenkins is the owner of Front Row Motorsports and has been involved in the game since 2005. Jenkins said he has been within the industry for 20 years and has yet to show a profit.
“We need a more competitive and fair system where teams, drivers and sponsors can be rewarded for our collective investments by building long-term enterprise value, just like any other successful professional sports league,” he said.
The lawsuit mentions that of the 19 team owners who were originally awarded charters in 2016, only eight of them remain in the game.
According to , a recent change in revenue sharing and recent charter rules placed NASCAR on a path that does not make profits for automotive owners. Media reported that the league was negotiating with 36 team owners to renew the charter system introduced in 2016. All teams are guaranteed a spot in each Cup Series race. The owners want the present charter agreement to be everlasting, because the contract expires at the tip of the 2024 season on November 10.
“Today’s action shows that I am ready to fight for a competitive market where everyone wins,” Jordan said. “Everyone knows that I actually have all the time been a fierce competitor and that may to win drives me and the complete 23XI team every week on the track. I really like racing and the eagerness of our fans, but the way in which NASCAR is run today is unfair to the teams, drivers, sponsors and fans.