NBA Hall of Famer and 23XI Racing co-owner Michael Jordan attends the NASCAR Cup Series FireKeepers Casino 400 at Michigan International Speedway on August 18, 2024 in Brooklyn, Michigan.
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Michael Jordan’s NASCAR team 23XI Racing and fellow team Front Row Motorsports filed an antitrust lawsuit against NASCAR and its CEO Jim France on Wednesday, saying they use anti-competitive practices to prevent fair competition in the sport.
23XI Racing and Front Row Motorsports said in a joint statement: “Together we filed this antitrust lawsuit so that racing can thrive as a more competitive and fair sport that will empower teams, drivers, Sponsors and most importantly fans benefit.
23XI Racing was established in 2020 Created by NBA legend Jordan, driver Denny Hamlin and Jordan’s long-time business partner Curtis Polk. Front Row Motorsports, meanwhile, is owned by Bob Jenkins, who has been racing full-time since 2005.
The lawsuit alleges that NASCAR and France operate without transparency, stifle competition and unfairly control the sport at the expense of team owners, drivers, sponsors, partners and fans.
Both teams have questioned everything NASCAR does, from purchasing the premier tracks used for its races to allegedly requiring teams to purchase parts from a single-source supplier chosen by NASCAR. They are also prohibited from competing in any other stock car competitions.
Tyler Reddick (#45 23XI Racing Upper Deck Toyota) hoods on pit road before the 75th Annual Cook Out Southern 500 at Darlington Raceway on September 1, 2024 in Darlington, South Carolina .
Jeff Robinson | Illustrated Sports Wire | Getty Images
The lawsuit alleges that the team is struggling to make a reasonable profit while investors must pour tens of millions of dollars into the team.
Jenkins of Front Row Motorsports said he has been in the industry for 20 years and has yet to make a profit.
“We need a more competitive and fair system that allows teams, drivers and sponsors to reward our collective investment by building long-term enterprise value, like every other successful professional sports league,” he said.
Meanwhile, NASCAR is not facing the same financial problems, the lawsuit says. In November last year, the company and New seven-year media deal and fox, nbc, Amazon and Warner Bros. Discovery The deal values the company at $7.7 billion, a 40% increase from the previous deal.
Unlike most professional sports leagues, which are owned and operated by their teams and team owners, NASCAR is privately owned and operated by the France family.
“No other major professional sport in North America is run by a single family who enriches itself through such uncontrolled monopolistic conduct,” the lawsuit states.
Financial challenges resulted in high turnover on the team. The lawsuit alleges that of the original 19 team owners chartered in 2016, only eight teams remain in the sport.
Operating a franchised team for a full season in the Cup Series can cost about $18 million annually, the lawsuit said.
Hendrick Motorsports vice president and former NASCAR driver Jeff Gordon said his team hasn’t had a profitable season in years despite having four franchises and 14 Cup championships, and he’s “very concerned about sustainability Development will be affected.” A real challenge. “
A long-time racing fan, Jordan is the first black majority owner of a full-time NASCAR racing team since legendary driver Wendell Scott.
“Today’s actions demonstrate my willingness to fight in a competitive market where everyone wins,” Jordan said in a statement. “Everyone knows I have always been a fierce competitor and this desire to win is The motivation that keeps me and the entire 23XI team on track every week. I love motorsports and the passion of the fans, but the way NASCAR operates today is unfair to the teams, drivers, sponsors and fans.
2024 regular season champion Tyler Reddick of the No. 45 Upper Deck Toyota and 23XI Racing co-owners Michael Jordan and NBA Hall of Famer Curtis Polk and Denny Hamlin, driver of the No. 11 Sport Clips Haircuts Toyota, poses after the NASCAR Cup Series Cook Out Southern 500 at Darlington Raceway on September 1, 2024 in Darlington, South Carolina. .
Meg Olyphant | Getty Images
Jordan’s team, led by driver Tyler Reddick, won its first regular-season title last month in its fourth year of existence. He currently ranks ninth in NASCAR standings.
23XI Racing and Front Row Motorsports said they will seek discovery from NASCAR and France and will seek damages for what they say are anti-competitive provisions in the 2016 charter agreement.
The teams are represented by one of the most prominent sports attorneys in the country, Jeffrey KesslerCo-Executive Chairman, Winston & Strawn LLP.
Kessler said they will file a preliminary injunction to allow the team to compete in the next calendar year while the antitrust lawsuit continues.
NASCAR did not immediately respond to a request for comment on the lawsuit.
Revealed: NBC and CNBC are owned by Comcast’s NBCUniversal unit.
