A racing team co-owned by NBA legend Michael Jordan has taken legal action against the National Association for Stock Car Auto Racing (NASCAR) and its CEO, Jim France.
Jordan’s 23XI Racing and Front Row Motorsports initiated this lawsuit, part of a larger legal battle in the U.S. auto racing world. Both teams filed the case in the Western District of North Carolina at Charlotte—Jordan’s base as a part-owner of the NBA’s Charlotte Hornets.
“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track,” Jordan said in a statement.
The legal team representing 23XI Racing, a team Jordan co-founded in 2020, and Front Row Motorsports, which has been racing since 2004, filed the case in a North Carolina federal court. Denny Hamlin, co-owner of 23XI and a driver with 54 Cup Series wins under his belt, also plays a key role in the team’s operations.
In September, NASCAR proposed a new revenue-sharing model. Thirteen organizations signed the agreement, but many admitted they felt pressured or threatened to do so. However, 23XI Racing and Front Row Motorsports declined to sign the proposal and instead brought in antitrust attorney Jeffrey Kessler to represent them.
In a public statement, 23XI Racing addressed their decision:
“23XI decided to not meet a NASCAR-imposed deadline last night to sign Charter agreements for its two cars for 2025-2031. 23XI’s position, as stated in a letter to NASCAR, is that we did not have an opportunity to fairly bargain for a new Charter contract. We notified NASCAR what issues needed to be addressed, in writing, at the deadline. We are interested in engaging in constructive discussions with NASCAR to address these issues and move forward in a way that comes to a fair resolution, while strengthening the sport we all love.”
According to the lawsuit and other reports, NASCAR had warned teams to sign within a short window before the playoffs or face losing their 2025 charter. All but 23XI Racing and Front Row Motorsports complied, with Hendrick Motorsports owner Rick Hendrick admitting he was “just tired” after months of negotiations.
In their joint statement, the teams pointed to “unfair terms” in both the 2016 and 2025 charters as the driving force behind their legal action. The lawsuit accused NASCAR of various anti-competitive practices, including:
The lawsuit also highlighted that, out of the 19 team owners who signed the 2016 charter, only eight remain in the sport, while the France family has “profited handsomely,” benefiting from $23.1 billion in broadcasting deals over 24 years.
“Everyone knows that I have always been a fierce competitor,” Jordan emphasized again in his statement. “That will to win is what drives me and the entire 23XI team each and every week out 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 teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”
NASCAR, through the Associated Press, had no immediate comment due to the ongoing litigation. Although headquartered in Daytona Beach, Fla., NASCAR also has a significant presence in Charlotte, which the lawsuit cited as a reason for filing in North Carolina.
Front Row Motorsports, led by Bob Jenkins, and 23XI Racing seek a preliminary injunction to allow them to race under the new charter agreement while they pursue their antitrust claims.
“I have been part of this racing community for 20 years and couldn’t be more proud of the Front Row Motorsports team and our success. But the time has come for change,” Jenkins remarked. “We need a more competitive and fair system where teams, drivers, and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league.”
23XI Racing, co-owned by NBA icon Michael Jordan and three-time Daytona 500 champion Denny Hamlin, competes in the NASCAR Cup Series, bringing a fresh energy to the track since its establishment in 2020.
Picture Credit: Jasen Vinlove-USA TODAY Sports
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