Michael Jordan’s 23XI Racing And Front Row Motorsports File Antitrust Lawsuit Against NASCAR Over New Charter Agreement
23XI Racing and Front Row Motorsports have jointly filed an antitrust lawsuit against NASCAR over the terms of the charter agreement it has with its Cup Series teams.
The system guarantees spots at every race and includes a revenue sharing model, but full details of the latest version have not been released.
Thirty-six charters were first issued in 2016 for free to full-time teams and they can be bought and sold on the open market. The value reportedly reached $30 to $40 million last year.
All of the teams that currently compete in the series recently agreed to a new agreement that goes into effect next year, but the Michael Jordan and Denny Hamlin-owned 23XI Racing and Front Row Motorsports have abstained.
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“We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. Together we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors and, most importantly, fans,” the teams said in a joint release.
“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,” Michael Jordan said in an individual statement.
“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.”
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The lawsuit accuses the France family that owns NASCAR of being “monopolistic bullies,” who control the licensing rights, rule making and own many of the tracks that the series competes on.
“Faced with a take-it-or-leave-it offer, and no competing opportunity for premier stock car racing in the United States, most of the teams concluded that they had to sign,” the lawsuit said, according to excerpts published by the Associated Press. “One team described its signing as ‘coerced,’ and another said it was ‘under duress.’
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It continued that “A third team said, NASCAR ‘put a gun to our heads’ and we ‘had to sign.’ A fourth described NASCAR’s tactics as that of a ‘communist regime.’ None of these teams would permit their identities to be publicly revealed for fear of retribution from NASCAR.”
The lawsuit includes a provision for the two teams to compete in 2025 under the new charter agreement as it is litigated. NASCAR has not yet commented on the lawsuit.
This is a developing story. Check back for updates
