NASCAR Settles Antitrust Lawsuit with Michael Jordan
NASCAR has settled an antitrust lawsuit brought by NBA legend Michael Jordan, agreeing to overhaul its contested charter system.
Filed on antitrust grounds by Front Row Motorsports and Michael Jordan’s 23XI Racing, which the basketball legend owns alongside his business manager Curtis Polk and three-time Daytona 500 winner Denny Hamlin, the suit alleged that NASCAR had exercised a monopoly through its charter system — elite motorsport’s version of the franchise model that guarantees the team’s “car a spot in the 40-car field for all 38 races, as well than a set payment of the weekly purse,” according to the Associated Press.
Front Row Motorsports and 23XI Racing were the only two teams out of 15 to refuse to sign NASCAR’s renewal of their lease agreement at the end of 2024, arguing that the terms were not up to what they were seeking after 2 years of negotiations.
“Even with charters, teams have argued the revenue model is unsustainable,” the AP noted earlier this month. “The teams wanted the charters to become permanent (they are renewable and revocable), a greater percentage of revenue and a voice in governance. »
“Both organizations argue that NASCAR has too strong a grip on all aspects of the racing series and allege a monopoly based on exclusivity clauses, ownership of most race tracks on the Cup schedule and its control over rules and regulations,” he added.
According to the New York PostFollowing Thursday’s settlement, Jordan, 23XI co-owner Denny Hamlin, and Front Row owner Bob Jenkings joined NASCAR Chairman Jim France as they stood together outside the courthouse where they announced that the charters “will be made permanent for all Cup Series teams. 23XI and Front Row Motorsports, the two plaintiffs, will get them back after racing most of last season.”
“Today is a good day,” Jordan said.
Although the financial terms of the settlement were not disclosed, an economist said that “23XI and Front Row are owed more than $300 million in damages.”
“What all parties have always agreed on is a deep love for the sport and a desire to see it realize its full potential,” NASCAR and the plaintiffs said in a joint statement. “This is a historic moment, one that ensures that NASCAR’s foundations are stronger, its future is brighter and its possibilities are greater.”
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