NASCAR Faces Antitrust Lawsuit from Michael Jordan’s 23XI Racing and Front Row Motorsports
A monumental lawsuit has been filed against NASCAR and its CEO Jim France by Michael Jordan’s 23XI Racing and Front Row Motorsports, alleging anticompetitive practices that stifle fair competition in the sport. The two teams claim that NASCAR’s lack of transparency, control over premier racetracks, and exclusive supplier agreements unfairly benefit the organization at the expense of team owners, drivers, sponsors, and fans.
The lawsuit highlights the struggles of teams to turn a profit, with Front Row Motorsports’ owner Bob Jenkins stating that he has yet to make a profit in 20 years. Meanwhile, NASCAR has secured a lucrative seven-year media deal worth $7.7 billion, a 40% increase over its previous agreement.
The privately-owned NASCAR is unique among major professional sports leagues, with the France family holding significant control. This has led to unchecked monopolistic practices, according to the lawsuit. The financial challenges have resulted in high team turnover, with only eight of the original 19 team owners remaining in the sport since 2016.
Michael Jordan, the first Black majority owner of a full-time racing team in NASCAR, emphasized his commitment to fighting for a competitive market. “Today’s action shows I’m willing to fight for a competitive market where everyone wins,” Jordan said. “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.”
The lawsuit seeks discovery from NASCAR and France, as well as damages for the anticompetitive terms imposed on teams. The teams are represented by prominent sports lawyer Jeffrey Kessler, who plans to file a preliminary injunction to enable the teams to continue racing while pursuing antitrust litigation. NASCAR has yet to respond to the lawsuit.
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