Michael Jordan leads NASCAR antitrust lawsuit
Michael Jordan's 23XI Racing and Front Row Motorsports have filed an antitrust lawsuit against NASCAR and its CEO Jim France on Wednesday.
Their legal action, submitted in the Western District of North Carolina in Charlotte, alleges that the stock car series and the France family have engaged in anti-competitive behavior in order to stifle fair competition within the sport.
In a joint statement, the two teams stated, "We both share a passion for racing, the thrill of competition, and the drive to win. However, we also share a belief that change is necessary for the sport we love. Together, we have brought forth this antitrust case in order for racing to flourish and become a more equitable and competitive sport, benefiting teams, drivers, sponsors, and most importantly, fans."
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The lawsuit lists several examples of anti-competitive practices, including NASCAR's acquisition of a majority of premier racetracks, the purchase of rival series ARCA, policies that prohibit teams from participating in non-NASCAR races, and the requirement for teams to purchase supplies exclusively from NASCAR-approved companies.
According to a press release from 23X1 and Front Row, "No other major professional sport in North America is controlled by a single family that profits from these types of unregulated monopolistic practices."
At the core of the legal action is NASCAR's revenue-sharing charter agreement, which was established in 2016. Both teams have refused to renew the charter system, citing "unfair terms" and demanding a larger share of the profits.
The lawsuit seeks treble damages for the "anti-competitive terms that teams have been subjected to under the 2016 charter agreement."
In 2020, Michael Jordan, veteran driver Denny Hamlin, and Curtis Polk formed 23XI Racing. Owner Bob Jenkins and Front Row Motorsports have been racing full-time since 2005.
Jordan, a member of the basketball Hall of Fame, stated, "Everyone knows that I am a fierce competitor, and that drive to win is what motivates me and the entire 23XI team every week on the track. I have a deep love for the sport of racing and the passion of our fans, but the current structure of NASCAR is unjust for teams, drivers, sponsors, and fans. Today's action demonstrates my willingness to fight for a fair market where everyone can succeed."
NASCAR officials have not yet released a statement regarding the lawsuit.
