CHARLOTTE, N.C. — Michael Jordan’s dispute with NASCAR opens in federal court Monday in a jury trial that could reshape the sport’s structure and finances.
The antitrust lawsuit was brought by 23XI Racing — co-owned by Jordan, three-time Daytona 500 winner Denny Hamlin and business manager Curtis Polk — and Front Row Motorsports, owned by Bob Jenkins. The two teams were the only ones among 15 on the Cup circuit that refused to sign renewals of NASCAR’s 2025 charter agreements after more than two years of negotiations over revenue sharing, governance and the permanence of charters.
At issue is NASCAR’s charter system, introduced in 2016 as a franchise-style model that guarantees a car a spot in the 40-car field for all 38 races and a defined share of the weekly purse. Teams seeking greater security and a larger slice of revenues wanted charters made permanent (they are currently renewable and revocable), more money and a voice in league governance. 23XI and Front Row contend the final 2025 terms fell short and charge NASCAR with operating as a monopoly through exclusivity clauses, ownership of many tracks on the schedule and centralized control over rules and competition.
The teams have also asked the court for substantial monetary relief to cover legal fees and financial losses they say resulted from being non-chartered this year. As “open teams” able to attempt qualifying for one of four nonchartered starting spots, 23XI and Front Row did make the races with their combined six cars, but the teams say competing without charters cost them millions in purse money.
NASCAR, founded and long led by the France family, denies antitrust violations. The organization says its practices reflect normal business conduct, points to increased payouts in the 2025 charter agreement and notes that the open-entry option allows nonchartered teams to race. NASCAR’s filings also underline robust revenues — pretrial discovery showed the series made more than $100 million in 2024.
Discovery has produced contentious and sometimes ugly exchanges that have become part of the public record. Internal communications show NASCAR executives using disparaging language toward team owners — including comments by Commissioner Steve Phelps calling Hall of Famer Richard Childress a “dinosaur,” an “idiot” and a “stupid redneck,” and suggesting Childress “owes his entire fortune to NASCAR” and “needed to be taken out back and flogged.” Other notes alleged that some fans “can’t read” and discussed efforts to undermine competing series such as Tony Stewart’s SRX.
The plaintiffs’ side also drew scrutiny. A 23XI executive was recorded saying NASCAR chairman Jim France “had to die” to secure favorable charter terms; Hamlin acknowledged personal dislike for the France family; one of Jordan’s advisers questioned Hamlin’s business acumen; and Jordan joked about gambling losses relative to payments to a driver.
Tensions extend to who will testify. NASCAR has sought testimony from powerful team owners Rick Hendrick and Roger Penske, who submitted declarations in support of the charter system and have asked not to be deposed; if required, they want testimony limited to charter matters. Many non-suing owners filed declarations defending the charter model, revealing unity among those teams even as some said the 2025 terms didn’t meet all their requests. NASCAR has also asked that some plaintiffs be barred from sitting in the courtroom during the trial, a move observers say aims to limit potential influence from high-profile figures such as Jordan and Hamlin.
Hamlin, who narrowly missed the Cup Series championship recently, signaled there would be no restraint in court. On social media he wrote, “Our fans have been brainwashed with (NASCAR’s) talking points for decades. Lies are over starting Monday morning. It’s time for the truth. It’s time for change.” NASCAR Commissioner Steve Phelps said the series had worked to settle the matter before trial.
Outcomes range widely. The case could still settle at any stage, even after a verdict and on appeal. If the plaintiffs win, a jury will assess monetary damages and Judge Kenneth Bell could adjust and potentially treble the award under antitrust law; the court could also order structural remedies, from selling assets to dismantling or altering the charter system or even forcing changes in ownership. Remedies could include ordering the France family to divest the sport, selling tracks it owns, making charters permanent or other sweeping changes.
If NASCAR prevails, 23XI and Front Row may struggle to remain viable beyond 2026. Charters held aside for the plaintiffs could be sold; the last recorded charter sale fetched $45 million, and NASCAR has indicated interest from potential buyers, including private equity firms.
A ruling on who will be allowed in the courtroom or excluded had not been announced as the trial approached. The two-week jury trial in the Western District of North Carolina promises to probe the inner workings of the sport, its finances and the fraught relationships between team owners and league leadership.