Michael Jordan Files Antitrust Lawsuit Against NASCAR
In May, NBA Hall of Famer Michael Jordan (owner of 23XI Racing) warned NASCAR that the way they run the business is unfair for car owners and that the “sport’s going to die” if they did not change their business practices and have a “good partnership.” Jordan has now filed an antitrust lawsuit with another car owner, Front Row Motorsports against NASCAR and CEO Jim France stating that they have used anticompetitive practices to prevent fair competition in the sport.
According to CNBC, the lawsuit alleges that NASCAR and France operate without transparency and in such a way that it doesn’t benefit 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 ways that will benefit teams, drivers, sponsors, and, most importantly, fans,” 23XI Racing and Front Row Motorsports said in a joint statement.
23XI Racing and Front Row Motorsports have an issue with NASCAR controlling all aspects of the business including buying the racetracks that are exclusive to its races to allegedly making teams buy their supplies from single-source suppliers chosen by NASCAR. Another contention is not allowing teams to participate in other stock car races.
Jordan’s team was founded and joined NASCAR in 2020 with racecar driver Denny Hamlin and Jordan’s business partner, Curtis Polk. Bob Jenkins owns Front Row Motorsports and has been involved in the sport since 2005. Jenkins said he’s been in the business for 20 years and has yet to make a profit.
“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,” he stated.
The lawsuit mentions that out of the 19 team owners who were originally granted charters in 2016, only eight of those teams remain in the sport.
According to CBS News, a recent change in revenue sharing and new charter rules have placed NASCAR on a path of not being profitable for car owners. The media outlet reported that the league is negotiating with the 36 team owners about renewing a charter system put in place in 2016. All teams are guaranteed a spot in each Cup Series race. The owners want to make the current charter arrangement permanent, as the agreement expires at the end of the 2024 season on Nov. 10.
1 thought on “Michael Jordan Files Antitrust Lawsuit Against NASCAR”