Michael Jordan vs. NASCAR: The lawsuit that could rewrite the rules

November 22, 2025 Oliver Obel

Jordan co-founded 23XI Racing in 2020 alongside driver Denny Hamlin and longtime adviser Curtis Polk. Although the team has grown quickly on the competitive side, the business environment has grown increasingly tense. At the center of the conflict is NASCAR’s charter model long-term licenses that guarantee race entry and distribute purse and media revenue.

Charters have surged in value, with one reportedly selling for more than $40 million last year. But teams say rising prices mask a system that limits financial transparency and leaves owners with limited long-term security. NASCAR argues the model ensures stability and competitive balance.

According to the Associated Press, NASCAR presented its proposed new charter agreement to 13 teams in September 2024. Eleven signed. Only 23XI Racing and Front Row Motorsports refused, arguing that the deal failed to address long-standing concerns over revenue sharing and secondary media rights.

When negotiations stalled, both filed a federal antitrust lawsuit accusing NASCAR of using its dominant position to pressure teams into accepting restrictive terms.

Leaked messages bring tensions into the open

Court filings have revealed private communications that show just how strained the relationship has become. As reported by The Independent, leaked texts among Jordan, Hamlin, and Polk show the group discussing whether other teams might eventually regret not joining the lawsuit. Hamlin also expressed frustration with the France family, which owns NASCAR.

Internal NASCAR communications were no less blunt. Commissioner Steve Phelps wrote that he wanted “zero wins for the teams.” Another email attributed to president Steve O’Donnell suggested reverting to stricter 1990s-era financial conditions, ending with a crude dismissal of team concerns.

Additional filings cited by ESPN show NASCAR accusing the plaintiffs of using the lawsuit to force a “permanent charter that no other team has,” referring to the teams’ request for more stability and revenue clarity.

A ruling on a preliminary injunction is expected soon, and the full trial is set for December.

Stakes that reach beyond a single season

The dispute intensified earlier this year when a federal appeals court vacated a previous order allowing the teams to operate as chartered organizations while litigation continued. Reuters reported that the ruling placed 23XI’s charter status “in jeopardy,” raising the stakes for Jordan’s team and creating new risks for its long-term business model.

Despite the legal pressure, both sides have signaled they may be open to negotiation. Yahoo Sports reported that NASCAR recently asked the court to schedule a settlement conference — an indication the sanctioning body may want to avoid a lengthy courtroom showdown.

Jordan, speaking to reporters after a recent hearing, made it clear he sees the issue as larger than one organization’s bottom line. “I’ve always said I want to fight for the betterment of the sport,” he said. “If I have to fight this to the end, for the betterment of the sport, I will do that.”

A pivotal moment for the sport’s future

The wider industry is paying close attention. Team owners have pushed for a more sustainable financial framework for years, and this case may be the moment that forces either negotiated reforms or a legal overhaul. Whether the next move comes from a judge or a settlement table, the outcome could reshape the structure of the Cup Series — and redefine how teams and NASCAR share control over the sport.

Sources: The Independent, Associated Press, Reuters, ESPN, Yahoo Sports.