Michael Jordan’s Antitrust Lawsuit Against NASCAR To Proceed After Failed Mediation
The antitrust lawsuit Michael Jordan filed against NASCAR heads to court after failed mediation between the parties
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A little over a year ago, NBA Hall of Famer Michael Jordan (owner of 23XI Racing) filed an antitrust lawsuit against NASCAR (National Association for Stock Car Auto Racing), along with Front Row Motorsports. Following a recent mediation failure, the lawsuit is proceeding to a full trial.
According to The Associated Press, the two sides are now heading back to court after testimony from both failed to yield a mutual solution. Jordan reportedly laughed in disbelief after the organization testified to what it had in mediation.
“Today’s hearing confirmed the facts of NASCAR’s monopolistic practices and showed NASCAR for who they are — retaliatory bullies who would rather focus on personal attacks and distract from the facts,” Jeffrey Kessler, attorney for the two parties bringing the suit. “My clients have never been more united and committed to ensuring a fair and competitive sport for all teams, partners, drivers and fans. We’re going to trial to hold NASCAR accountable.”
23XI Racing, co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, along with Front Row Motorsports, owned by Bob Jenkins, sued NASCAR and CEO Jim France, stating that it has used anticompetitive practices to prevent fair competition in the sport. Both owners were among the only two of the 15 organizations to decline to sign extensions to new charter agreements following more than two years of negotiations.
Both teams take issue with NASCAR controlling all aspects of the business, including buying the racetracks that host its races and allegedly requiring teams to buy their supplies from single-source suppliers chosen by NASCAR. Another point of contention is not allowing teams to participate in other stock car races.
U.S. District Judge Kenneth Bell and Jeffrey Mishkin, a former executive vice president and chief legal officer of the NBA, led the mediation, which took place on October 20 and 21. NASCAR had requested that Bell dismiss the lawsuit, and the sessions dwelled on NASCAR’s bid to narrow the scope of damages the two teams say they are owed. The league accused 23XI and FRM of manipulating the other teams and conducting themselves with “classic cartel behavior, ultimately because they received less than they would have,” under those charter extensions that were signed last year.
The original charters, signed by the teams from 2016 through 2020, were renewed to continue through Dec. 31, 2024. While this lawsuit was pending, 23XI and FRM initially won a preliminary injunction recognizing them as chartered teams for this season. That ruling was overturned, and the combined six cars have been racing as “open” teams as the season comes to a conclusion Nov. 2.
Both sides are scheduled to return to court on Dec. 1.