NBA icon Michael Jordan has filed a lawsuit against Nascar, the largest motorsports organisation in the United States, accusing the company of running an unlawful monopoly that he says has financially damaged the racing team he co-owns.
Jordan attended the opening day of the trial on Monday, sitting in the front row as Denny Hamlin — his 23XI Racing partner and a three-time Daytona 500 champion — delivered emotional testimony.
Jordan, Hamlin and Front Row Motorsports allege that Nascar has restricted opportunity in order to generate hundreds of millions of dollars for itself.
Nascar CEO Jim France, who inherited the business founded by his father, Bill France Sr., denies the allegations.
What the Case Centres On
The lawsuit was filed in October 2024 by Jordan’s 23XI Racing and Front Row Motorsports, led by fast-food franchise owner Bob Jenkins. Judge Kenneth Bell is presiding over the trial in Charlotte, North Carolina.
The teams argue that Nascar has hindered innovation and profitability by mandating the use of its Next Gen vehicles and requiring repairs to be made only with parts purchased from Nascar-approved suppliers.
They also contend that Nascar exerts excessive control over rules, regulations and race operations, enforces “monopolistic” exclusivity clauses, and owns most tracks on the Cup Series calendar, limiting competitive alternatives.
A central issue is Nascar’s charter system — a structure comparable to a sports franchise model, but functioning more as renewable and revocable contracts rather than permanent assets. Charters guarantee participation in all 38 Cup Series events and provide teams with scheduled payouts from a weekly purse.
Last year, 23XI and Front Row were the only two of 15 teams to refuse extensions of their charters, calling the terms inequitable. They pushed for a larger share of revenue and for charters to become permanent, arguing that the existing financial structure is unsustainable even with charter benefits.
In his opening statement, attorney Jeffrey Kessler said Front Row owner Jenkins has never turned a profit since founding the team in 2004, despite winning the Daytona 500 in 2021.
Kessler cited a Nascar-commissioned study showing more than 70% of teams lost money in 2024, while nearly $400m (£302.7m) was distributed to the France Family Trust over three years. He also referenced Goldman Sachs estimates valuing Nascar at $5bn.
Nascar is owned entirely by Jim France.
“What the evidence is going to show is Mr France ran this for the benefit of his family at the expense of the teams and sport,” Kessler told the court.
Nascar argues that teams do not need a charter to race and notes that payouts increased under the newest agreement. Four of the 40 starting spots in each Cup Series race are reserved for “open teams” without charters.
“The France family built NASCAR from nothing. They are an American success story,” defence attorney Johnny Stephenson said on Monday.
“They’ve done it through hard work over 75 years. That’s the kind of effort that doesn’t deserve a lawsuit. That’s the kind of effort that deserves admiration.”
Stakes and Possible Outcomes
The trial, expected to last about two weeks, will be decided by six jurors. Jordan’s fame led to several potential jurors being dismissed for concerns over impartiality, including one who acknowledged: “I like Mike.”
23XI and Front Row are seeking significant financial compensation for legal expenses and losses incurred while operating without charters this season.
If Nascar prevails, both teams — and their six combined cars — could face closure. Their charters, currently held by Nascar, would likely be sold to new buyers such as private equity firms.
A victory for Jordan and the teams could lead to major structural changes, potentially rewriting how Nascar is governed. Judge Bell would have wide authority to remedy a monopoly, including ordering a sale of the organisation or dismantling the charter system altogether.
Jordan is the majority owner of 23XI Racing, alongside Hamlin and longtime adviser Curtis Polk. According to 23XIracing.com, they launched the team in 2020 with a $20m investment and the purchase of two charters. The team debuted with a single driver, Bubba Wallace, before expanding to three cars.
Today, 23XI is regarded as a strong competitor in the Cup Series. Wallace and Tyler Reddick have secured 10 wins between them and made several playoff appearances.
Jordan is not the only high-profile figure with a stake in Nascar. Grammy-winning artist Pitbull joined Trackhouse Racing as a co-owner in 2021, declaring: “Now we’re going to show the world Nascar is not only a sport, but it’s a culture.”
Another basketball superstar, LeBron James, became a partner in Fenway Sports Group that same year, connecting him to Roush Fenway Racing.
His first public comments about Nascar came in 2020, when he expressed support for Bubba Wallace after a noose was found in Wallace’s Talladega garage. An FBI investigation later concluded no hate crime occurred.
