NASCAR and CEO Jim France are being sued by Michael Jordan's 23XI Racing team.

• NASCAR and CEO Jim France are being sued by Michael Jordan's NASCAR team for allegedly engaging in anticompetitive practices and maintaining a monopolistic grip on the sport.
• NASCAR's management is unfair to teams, drivers, and sponsors, according to Jordan.
• The suit also said teams are struggling to make reasonable profits.

On Wednesday, Michael Jordan's NASCAR team, 23XI Racing, and Front Row Motorsports filed an antitrust lawsuit against NASCAR and CEO Jim France, alleging that they have engaged in anticompetitive practices to stifle fair competition in the sport.

"In collaboration, we filed this antitrust case to enhance the competitiveness and fairness of racing, benefiting teams, drivers, sponsors, and, above all, fans," stated 23XI Racing and Front Row Motorsports.

Jordan, Hamlin, and Polk founded 23XI Racing in 2020, while Front Row Motorsports, owned by Jenkins, has been racing full time since 2005.

The allegations in the suit claim that NASCAR and France lack transparency, suppress competition, and manipulate the sport to their advantage, disadvantaging team owners, drivers, sponsors, partners, and fans.

NASCAR's exclusive control over premier racetracks, single-source suppliers, and prohibition of participation in other stock car races are issues for the two teams.

While investors are required to invest tens of millions of dollars in the team, the suit stated that teams are facing challenges in achieving reasonable profits.

Front Row Motorsports' Jenkins, with 20 years of experience, has yet to turn a profit.

"A more competitive and fair system should be established where teams, drivers, and sponsors can be rewarded for their collective investment in building long-term enterprise value, similar to successful professional sports leagues," he stated.

The suit alleged that NASCAR is not facing the same financial issues as it signed a new seven-year media deal with Fox, Turner, and valued at $7.7 billion, a 40% increase over its previous deal last November.

Unlike most pro sports leagues, NASCAR is not owned and operated by its teams and team owners, but rather by the France family.

No other major professional sport in North America is run by a single family that profits from unchecked monopolistic practices, the lawsuit claimed.

High turnover among teams has resulted from financial challenges. Out of the 19 teams initially granted charters in 2016, only eight teams remain in the sport, as per the lawsuit.

Running a chartered team for a full season of Cup Series races can cost approximately $18 million annually, according to the suit.

Despite having four charters and 14 Cup Series championships, Jeff Gordon, Hendrick Motorsports vice chairman and a former NASCAR driver, stated that his race team has not had a profitable season in years and he has "a lot of fears that sustainability is going to be a real challenge."

Since Wendell Scott, Jordan, a longtime racing fan, is the first Black majority owner of a full-time racing team in the NASCAR series.

"Jordan stated that his competitive spirit and drive to win are what motivate him and the entire 23XI team to excel in racing every week. He expressed his love for the sport and the passion of fans, but believes that NASCAR's current system is unfair to teams, drivers, sponsors, and fans."

In its fourth year of existence, Jordan's team, led by driver Tyler Reddick, won its first regular-season championship last month. Currently, he is in ninth place in NASCAR's standings.

Both 23XI Racing and Front Row Motorsports will pursue legal action against NASCAR and France for the anticompetitive terms they claim they have been subjected to under the 2016 charter agreement.

Winston & Strawn's co-executive chairman, Jeffrey Kessler, is representing the teams.

Kessler announced that they will file a preliminary injunction to allow the teams to race in the upcoming year while still pursuing antitrust litigation.

NASCAR did not immediately respond to a request for comment on the suit.

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