Michael Jordan’s 23XI Racing team has made headlines for filing a lawsuit against NASCAR and its CEO, Jim France, over alleged monopolistic practices. The suit, filed in federal court, centers on NASCAR’s charter system, with Michael Jordan’s team accusing NASCAR of strong-arming teams into accepting unfair terms that significantly limit their share of revenue. 23XI Racing, co-owned by Michael Jordan and driver Denny Hamlin, along with Front Row Motorsports, are challenging NASCAR’s control over how much money teams receive and their inability to renegotiate more favorable terms in their agreements.
Michael Jordan, best known for his legendary NBA career, surprised many when he ventured into NASCAR. A long-time fan of racing, Michael Jordan co-founded 23XI Racing in 2020 with Denny Hamlin, a prominent NASCAR driver. Michael Jordan’s passion for the sport runs deep, dating back to his childhood when he attended NASCAR races with his father. The 23XI Racing team was established with the goal of diversifying the sport, both in terms of ownership and in attracting a broader fanbase. Michael Jordan has always been an avid NASCAR fan and decided to take his love for racing to the next level by owning a team, emphasizing that this venture was about creating opportunities and winning championships. 23XI Racing quickly made waves with Bubba Wallace as its first driver, securing a win at Talladega in 2021.
For those of you who may not know, or are too young to remember, Michael Jordan is widely regarded as one of the greatest basketball players of all time – some would even argue better than LeBron James, but I digress. Michael Jordan’s legendary career began in the NBA in 1984 when he was drafted by the Chicago Bulls as the third overall pick. Over the course of his 15-season career, Michael Jordan won six NBA championships with the Bulls, earning five MVP awards and ten scoring titles. His influence extended beyond the court, with his charismatic personality and competitive drive making him a global icon. Michael Jordan’s game-winning shots, dominance in clutch moments, and electrifying performances solidified his status as a basketball legend.
Off the court, Michael Jordan made a fortune through endorsement deals and smart investments. His partnership with Nike led to the creation of the Air Jordan brand, which revolutionized sports apparel and made Michael Jordan a household name. The Air Jordan line became a cultural phenomenon, with billions in sales worldwide. Jordan also signed lucrative endorsement deals with brands like Gatorade, Hanes, and McDonald’s, further increasing his earnings.
In addition to his NBA salary and endorsements, Michael Jordan made significant financial moves post-retirement. In 2010, he became the majority owner of the Charlotte Hornets (then known as the Charlotte Bobcats), acquiring the team for $175 million. Under his leadership, the team’s value skyrocketed, making Michael Jordan the first former NBA player to become a billionaire. In 2023, Michael Jordan sold his majority stake in the Charlotte Hornets for $3 billion. With all of his various business ventures, including investments in real estate and other industries Forbes estimates Michael Jordan’s net worth to be over $3 billion dollars. Michael Jordan’s ability to transition from basketball superstar to successful businessman is a testament to his savvy and competitive spirit.
The conflict between 23XI Racing and NASCAR highlights a key difference between NASCAR and other major U.S. sports leagues, such as the NBA, MLB, and NFL. In these leagues, teams collectively own the league, giving them a say in its operations, from revenue sharing to rule changes. In contrast, NASCAR remains a privately-owned entity, run by the France family since its inception in 1948. The teams that compete in NASCAR do not own any part of the organization, meaning they lack the influence that teams in other sports leagues have.
This ownership structure is a point of contention for racing teams, especially as the sport evolves and its financial landscape changes. In the lawsuit, Michael Jordan’s 23XI Racing and Front Row Motorsports allege that NASCAR is exploiting its monopoly power, preventing teams from negotiating a fairer cut of the revenue generated by the sport. By controlling key decisions, such as charter agreements, NASCAR effectively leaves the teams with little leverage in negotiations.
At the heart of the lawsuit is the charter system, introduced by NASCAR in 2016. Charters guarantee teams a spot in races, a necessary move to provide stability to teams and encourage long-term investment. However, the lawsuit argues that the system has now turned into a tool for NASCAR to maintain an unfair advantage. Michael Jordan’s 23XI Racing and Front Row Motorsports are particularly frustrated with NASCAR’s refusal to negotiate improved financial terms for teams when renewing their charters beyond 2024. According to the complaint, teams were presented with a “take-it-or-leave-it” offer that forced them to either accept the terms or risk losing their charters altogether .
By filing the lawsuit, 23XI Racing is not only challenging NASCAR’s practices but also seeking an injunction to allow the teams to continue competing in the 2025 season without forfeiting their right to pursue antitrust claims. Michael Jordan and his team argue that the way NASCAR is run today hurts not just the teams and drivers but the fans and sponsors as well. The goal, according to Jordan and Hamlin, is to create a more competitive environment where all stakeholders in the sport share fairly in its success.
Michael Jordan’s 23XI Racing lawsuit against NASCAR could have far-reaching implications for the sport. While NASCAR’s current structure has allowed it to maintain control over its operations, this legal challenge may force it to reconsider how it works with teams. The lawsuit shines a light on the growing frustration within the NASCAR community, as teams seek more influence and a bigger share of the revenue generated by the sport. Michael Jordan, who has been a fan of racing for decades, is now leveraging his business acumen and star power to fight for changes that could shape the future of NASCAR. Should the teams succeed in court, it could lead to a more balanced partnership between NASCAR and the teams, much like the models seen in the NBA, MLB, and NFL. This case could mark a pivotal moment in the sport’s history, opening up new possibilities for how racing teams operate within NASCAR.
Michael Jordan’s 23XI Racing team sues NASCAR and CEO Jim France