$3.5B-worth Michael Jordan declares NASCAR's operations unfair amid 23XI's lawsuit against Jim France
Michael Jordan and Denny Hamlin's 23XI Racing, alongside Front Row Motorsports, has filed an antitrust lawsuit against NASCAR and its CEO Jim France. NBA legend Jordan said in a statement that NASCAR has been operating in a manner that is unfair to the teams.
23XI and FRM refused to sign NASCAR's new charter agreement, while the rest of the Cup team owners agreed to the terms after two years of prolonged negotiations. Jordan's team has been vocal about the unfair terms of the deal and stood its ground.
On Wednesday, October 2, Michael Jordan, worth $3.5 billion (as per Forbes) sued NASCAR, claiming monopolistic control of the sport and anti-competitive practices. The lawsuit was filed in the Western District of North Carolina, with Jordan releasing a statement that read:
"Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. 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. Today’s action shows I’m willing to fight for a competitive market where everyone wins."
The statement released by 23XI Racing accused NASCAR and the France family of operating without any transparency, stifling competition, and unfairly benefiting themselves at the expense of the teams.
Other anti-competitive practices listed in the report included buying premier racetracks and imposing exclusivity deals, acquiring the ARCA series (the only major stock car racing competitor), preventing teams from participating in other series, and forcing teams to buy parts from single-source suppliers.
Denny Hamlin stated that NASCAR would thrive when the teams are thriving, ultimately benefiting the fans. FRM owner Bob Jenkins emphasized that the series requires a "more fair and competitive system" where teams can build long-term enterprise value.
23XI co-owner Curtis Polk issues statement after filing lawsuit
Curtis Polk, a long-time ally of Michael Jordan and a founding member of 23XI Racing, criticized the France Family for how the new charter deal was imposed. He accused the owners of marginalizing the team owners and consolidating control for its own benefit.
"A true partnership, not dictatorship, is our goal. For over two years, I have dedicated myself to championing a more fair and transparent system within NASCAR, where we recognize the importance of the France family and the sanctioning body, but do what is best for all stakeholders. The charter that was forced on the teams with only hours’ notice does not accomplish these objectives," Polk said in a statement.
"The new charter is an attempt to further marginalize the teams’ voices in the sport and consolidate control and the power in the hands of the France family for their sole benefit. I hope our actions today lead to a future of collaboration for this great sport we love,” he added.
Michael Jordan's 23XI and FRM will be represented by Jeffrey Kessler, a leading antitrust attorney who has previously spearheaded various revolutionary lawsuits in NCAA, NFL, and soccer.