NASCAR Antitrust Battle Heats Up in Courtroom
CHARLOTTE, N.C. — An ongoing legal tussle between NASCAR and two of its teams has grabbed headlines during a recent court hearing. The dispute saw unexpected revelations, including some colorful messages from high-profile figures like NBA legend Michael Jordan, who owns the 23XI Racing Team.
In a text message, Jordan criticized rival Joe Gibbs Racing and the 13 other teams that signed new charter agreements with NASCAR last September. He expressed confidence that these teams would come to regret their decision not to join 23XI Racing. Only 23XI and Front Row Motorsports opted out of the recent charter extensions, leading them to file a lawsuit accusing NASCAR of acting like a bully and dominating the sport.
This legal fight has been brewing for some time, and new details released during the hearing only fueled the fire. NASCAR, which is privately held by the France family, is led by Jim France, the son of the founder. His granddaughter, Lesa France Kennedy, attended the hearing, marking her first appearance since the lawsuit began.
The president of 23XI Racing, Steve Lauletta, made controversial remarks, suggesting that the death of Jim France might be the only solution for teams seeking better charter agreements. Meanwhile, Denny Hamlin, a co-owner of 23XI, expressed his deep feelings against the France family while urging the need to maintain business stability.
In communication between Jordan and his business manager, they discussed the financial implications of not selling their charters, emphasizing the importance of their team’s future. They noted that the current situation feels like a hobby rather than a competitive business.
NASCAR also found itself in hot water during the hearing when emails between its executives surfaced. NASCAR Commissioner Steve Phelps expressed frustration over discussions about charter agreements, claiming that early proposals didn’t benefit the teams. He stated that NASCAR’s approach should meet in the middle or risk failure.
The attorney for 23XI and Front Row, Jeffrey Kessler, argued that these emails indicate NASCAR’s monopolistic behavior in stock car racing. NASCAR maintains that the teams forfeited rights to their charters when they rejected the agreements last September.
Currently, 23XI Racing and Front Row Motorsports are classified as “open” teams, which means they do not have guaranteed entry into races and receive lower payouts. This status puts them at a competitive disadvantage and raises concerns for their long-term viability.
During the hearing, U.S. District Judge Kenneth Bell warned that the future of NASCAR’s charter system depends on the outcome of this case. The teams are urgently seeking to have their charter status restored, with a trial set for December 1.
NASCAR is preparing to sell the charters, and the judge questioned why they wouldn’t sell a slot to satisfy the pressing needs of the teams if there’s a ready buyer. NASCAR insists it’s not obligated to work with teams it chooses not to associate with.
Outside of court, Jordan voiced his willingness to negotiate a settlement while also open to a trial. He acknowledged the high stakes for his and Front Row’s businesses, predicting dire consequences if they don’t regain their charter status.
“I want to fight for the betterment of the sport,” Jordan declared, emphasizing the necessity of ongoing change for both teams and fans. He expressed determination to see this through for what he believes is essential for the future of NASCAR.
