One of the most famous athletes on the planet has taken aim at NASCAR in a case that could change stock car racing in America.
With the current charter agreement set to expire after this season, NASCAR officials presented racing teams with a new deal to sign last month.
While 13 of 15 racing teams signed an extension, 23XI Racing and Front Row Motorsports missed the deadline to ink the new deal. And they’re now on the front lines of a lawsuit that threatens to upend the sport’s current format.
Jordan files joint lawsuit against “monopolistic bullies”
Earlier this week, 23XI Racing and Front Row Motorsports filed a joint antitrust lawsuit against NASCAR alleging that the governing body acts as a monopoly for stock car racing.
The lawsuit accuses NASCAR and CEO Jim France – whose family founded and runs the league – of engaging in “anticompetitive and exclusionary practices” that force racing teams and drivers into unwanted terms with no viable alternative.
At the center of the lawsuit is NASCAR’s charter system, which forces racing teams to buy and renew a spot for each car in order to be championship eligible and earn a share of the sport’s overall revenue.
But signing the charter also means agreeing to whatever NASCAR decides to include in the term sheet. And because the France family owns and operates most tracks across the country, there’s no alternative for prospective teams and drivers.
“The France family and NASCAR are monopolistic bullies,” the lawsuit said. “And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims.”
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Last month, NASCAR set a self-imposed deadline for all racing teams to agree to a new charter extension for 2025 – leaving those teams mere hours to read the final terms and sign a binding agreement or risk losing a charter.
23XI Racing and Front Row Motorsports were the lone holdouts. And, in theory, they could both be barred from competing for a championship or earning their usual revenue split if NASCAR enforces that deadline and the lawsuit doesn’t bear fruit.
What happens next?
The likeliest outcome of this lawsuit is for NASCAR to try to dismiss the suit or come to terms on a settlement, if only to avoid disclosing its financials in open court.
If the lawsuit runs its course, it could have a transformational impact on the sport and change the relationship between NASCAR and its racing teams, which has become increasingly hostile over time as the sport’s popularity wanes.
For now, 23XI Racing co-owner Denny Hamlin – who drives for Joe Gibbs Racing – and 23XI Racing’s top driver Tyler Reddick continue their pursuit for a championship in 2024 even as the racing team wrestles with NASCAR in the legal system.
On Saturday, Hamlin said he’s “100% in it and focused” on winning his first title, while Reddick said he doesn’t feel “uncomfortable” driving for a team entangled in a legal battle with the sport’s governing body.
In theory, this could be 23XI’s last chance to compete for a title, though it seems unlikely that this situation won’t be resolved by the start of next season.
Hamlin (sixth) and Reddick (14th) will begin in the top half of the starting grid for Sunday’s YellaWood 500 at Talladega Speedway. The championship race will take place Nov. 10 at Phoenix Raceway.