Michael Jordan, the most popular figure in the basketball scene, is not only known for his greatest career but he has also taken on a different kind of challenge, and this time it is the NASCAR track, have you heard about it yet? But recently, he has taken on a legal battle against NASCAR, which is the body that oversees U.S. professional stock car racing, with his CDC team, 23XI Racing, co-owned with Denny Hamlin. This 2024 lawsuit which was lodged by 23XI Racing along with Front Row Motorsports against NASCAR, is about the operational practices of NASCAR which they believe make it hard for teams to compete fairly or grow their businesses. So, let’s just go over why is this Michael Jordan Nascar Lawsuit a thing in the first place, and what are the main concerns. Here we go.
About 23XI Racing and NASCAR’s Charter System
For those who don’t know yet, well, 23XI Racing started as a new team by Michael Jordan and Denny Hamlin when they entered the NASCAR space in 2020. Just so you know though, from the very start, the idea was to pump in new blood and disrupt the traditional flow of things. 23XI Racing, like others, has hit a snag with it called the charter system, a system that is a bit like a company franchise. Through the system called “charters”, some teams have guaranteed entry into each race as well as enjoy the benefits that come with that and some financial privileges, you know? However, even though charters sound like a good deal, they limit the chances for teams to move flexibly and also give NASCAR a lot of power over business decisions. Many teams feel that the whole charter system is mainly for the benefit of NASCAR and limits their financial potential, and sure, therefore, they have only to accept NASCAR’s request instead of looking for other ways to grow.
What Are The Core Issues Behind the Lawsuit?
23XI Racing and Front Row Motorsports put forth a list of objections they see as a hindrance to the success and development of the teams, what are those specifically? Well, firstly, they claim that NASCAR is operating like a monopoly, having the upper hand in nearly every area of sport leaving little room for competition. Just recently, NASCAR put up a “take-it-or-leave-it” kind of contract to which teams found it hard not to agree. Like, out of the fifteen teams, fourteen went along with the system with 23XI and Front Row opting out and going to the court instead. They believe that the practices are only to benefit NASCAR and not the businesses, which is unfair to its core, and it should change.
Antitrust Allegations Against NASCAR
Did you know that critics are now accusing NASCAR of acting like a monopoly and it’s now being referred to as a cartel? Yes, as per the lawsuit filed by Michael Jordan’s team, this has been the case since the France family took control of the organization in the year 1948, you know? All in all, the matter in the lawsuit states that some teams have not been able to raise funds because NASCAR limited the market. Their team is seeking not only their success but they would like to have fairer conditions so that all teams have the chance to win.
Motivations Behind the Lawsuit
Without a single doubt, Michael Jordan sees this case as a way of achieving fairness for all in NASCAR. The Racer, as he often refers to himself, wants every team to have the same level of power and choice as NASCAR. Like, Front Row Motorsports owner Bob Jenkins stated, in agreement with Jordan, he would not deny that he had been racing for 20 years and did not really see his efforts rewarded in terms of finances.
