Jordan’s antitrust battle with NASCAR enters federal court
Opening of the case
A long running dispute between Michael Jordan’s team and NASCAR moved into a federal courtroom in Charlotte on Monday, marking the start of a trial that could influence the future of America’s most prominent stock car series. Jordan arrived shortly before proceedings began, a sign of how seriously he is treating a case that challenges the business framework at the heart of the sport.
At issue is whether NASCAR has used its dominant position to control nearly every major aspect of the racing ecosystem. A federal judge previously ruled that NASCAR does hold monopoly power, but it will now be up to a six person jury to decide whether that power was abused.
Background for non fans
For many outside the motorsports world, the dispute centers on NASCAR’s “charter system”, a model introduced in 2016 that works somewhat like franchise rights in the NBA or NFL. A charter guarantees a race team entry into every event on the top level Cup Series schedule and provides a predictable share of prize money. Teams without charters, known as open teams, must qualify for a handful of remaining slots each week and receive smaller financial payouts.
Jordan’s 23XI Racing and Front Row Motorsports declined to renew their charters in late 2024, arguing that the system gave NASCAR too much control over revenue distribution, competition rules and long term stability. They filed suit claiming the organization used its market power to impose unfavorable terms.
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Accusations and legal framing
According to court filings referenced by multiple U.S. outlets, the two teams say NASCAR’s structure restricts competition by controlling most Cup Series racetracks, setting all rules internally and limiting the ability of teams to have a formal voice in decision making. They argue this leaves owners financially dependent on NASCAR with little leverage to negotiate more balanced terms.
NASCAR, in response, maintains that its model is standard for a sanctioning body and that increases in the 2025 revenue plan show it is not limiting competition. The organization denies violating any antitrust law.
Denny Hamlin, Jordan’s partner at 23XI Racing and a three time Daytona 500 winner, suggested over the weekend that long standing frustrations would come into public view during the trial. “Our fans have been brainwashed with NASCAR’s talking points for decades,” he wrote. “It is time for the truth.”
Courtroom dynamics
Jordan has been approved to remain in the courtroom throughout the proceedings as the designated corporate representative for 23XI. NASCAR initially sought to keep him out until after his testimony. When asked by reporters whether he ever imagined the dispute escalating to a trial, he answered simply, “Nope.”
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Two potential jurors were dismissed Monday morning after appearing overly excited to see the NBA legend in person, according to reporter Bob Pockrass.
Financial pressure on the teams
By refusing NASCAR’s charter terms, both plaintiff teams spent 2024 competing as open teams. Although all six of their cars successfully qualified for every race, they say the reduced payouts cost them millions of dollars. Court documents also show NASCAR earned more than 100 million dollars that same year, information made public through an extensive discovery process.
Internal messages revealed
That discovery phase exposed a series of unflattering private messages from executives and team leaders on both sides. Reporting from outlets such as the Associated Press and Fox Sports detailed negative comments about team owners, drivers and even NASCAR fans. The leaks have added tension to a sport already navigating financial strain and shifting viewership habits.
Messages linked to team representatives also contained sharp criticism of NASCAR leadership, illustrating how frayed relationships have become across the garage.
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Deep divide among owners
The case has sparked a rare public split inside the tight knit world of stock car team ownership. Several high profile organizations, including those run by Rick Hendrick and Roger Penske, have supported NASCAR’s existing framework and attempted to avoid testifying. These teams acknowledge that improvements are needed but argue that dismantling the charter system outright could destabilize the entire sport.
Broader implications for the sport
Legal experts say the outcome of this trial could reach far beyond the two teams involved. A victory for 23XI and Front Row could lead to significant damages, possible changes to NASCAR’s authority structure and new rules regarding how teams enter the series. In an extreme scenario, the France family’s long standing ownership of the sport could be affected.
A win for NASCAR could leave the plaintiff teams without a viable business path by 2026, meaning their unused charters, which have recently sold for around 45 million dollars each, might be offered to new investors.
What the verdict could reshape
The central question for jurors is whether NASCAR’s practices limit fair competition in a way that violates federal antitrust law. Their decision could influence how teams negotiate contracts, how money flows through the sport and whether outside investors remain interested in entering stock car racing. Whatever the result, the trial marks one of the most consequential legal challenges in NASCAR’s modern era.
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