Michael Jordan took the stand on Friday in a landmark antitrust lawsuit against NASCAR, a case that could reshape how one of America’s biggest sports is run. Jordan’s team, 23XI Racing and Front Row Motorsports, said NASCAR has so much control over everything, from the track to the money to the rule book, that the teams have no real bargaining power. NASCAR denies this and says the lawsuit could destroy the system that has sustained the sport for decades.
The case has brought candid inside information into the public eye and exposed long-running grievances between teams and NASCAR leadership. Jordan co-owner Denny Hamlin said the trial will finally “hear the truth” about how the series “really works.”
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So what is this case really about? Here’s the simplified version…
What’s going on?
Michael Jordan – Yes, That Michael Jordan – Co-owns 23XI Racing with three-time Daytona 500 winner Denny Hamlin. Together they create one of NASCAR’s strongest young teams. But Jordan said the business model underpinning America’s top motorsport is fundamentally unbalanced.
Jordan said NASCAR has an unfair system that determines who is guaranteed to race, how much money they make and even the tracks at which races are held — a system that is critical to a team’s survival and can make or break an entire organization.
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The system revolves around something called a charter. This is where the battle begins.
What exactly is a charter?
A charter is like a golden ticket, guaranteeing your team will be able to compete every week. Quantities are limited. Teams purchased them for a few million dollars a few years ago, and their value soared into the tens of millions because they essentially guaranteed your place in the sport. The most recent auction result was approximately $45 million (£33.7 million).
But here’s the catch: charters maturity and may only be renewed on NASCAR’s terms. It’s like if you bought an ice cream truck permit for $5 in 2016, and in 2025, the city tells you, “Oh, by the way, your permit expires now. Please renew it per our terms, or else.”
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Jordan doesn’t like this.
After more than two years of intense negotiations, 15 teams secured new multi-year franchise agreements in 2024. In the end thirteen people signed. Jordan’s 23XI Racing and Bob Jenkins’ Front Row Motorsports did not do that, arguing the terms were far less than what was needed for the team’s financial stability and long-term growth.
Both teams entered the 2024 race with an “open” entry — allowed under NASCAR rules but without guaranteed prize money — which they said cost millions of dollars.
What is Jordan Beef?
Jordan’s basic complaint was that teams were being asked to spend huge amounts of money without getting anything solid in return. He said he personally invested $40m (£29.9m) in 23XI Racing, but Nascar still controls whether his team is guaranteed a spot on the track each year.
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To Jordan, this meant he didn’t really have his place in the sport. NASCAR does.
It’s like buying a house and then the landlord shows up and says, “Actually, it’s still mine. If you want to keep living here, you need to reapply every few years.”
Teams want franchises to function like franchises in the NBA or NFL: permanent, transferable, and worth whatever they pay on the open market. Now, they say NASCAR can change the rules at any time, making their investments feel unstable and unsafe.
What is NASCAR’s defense?
Nascar, founded by the France family 76 years ago, insists it has not violated antitrust laws and says its charter negotiations reflect standard business practices.
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The series argued that the 2025 deal actually increased spending by teams and that the ability of cars to compete as an open entry showed the system was not anti-competitive. NASCAR also pointed to widespread support from other team owners, including statements from Rick Hendrick and Roger Penske that they do not want the franchise model abolished.
Pretrial documents also show that NASCAR earned more than $100 million in 2024, a figure the prosecution team believes highlights an imbalance in bargaining power.
Why was this discovery process so explosive?
Because the lawsuit opened the door for lawyers to obtain emails, text messages and internal messages from both parties, many of which should never have been made public.
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which discloses:
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NASCAR executives called Hall of Fame owner Richard Childress a “dinosaur,” an “idiot” and a “dumb redneck,” with one saying he should be “taken back and whipped.”
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Another executive claims NASCAR fans ‘can’t read’
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Leaders discuss trying to ‘kill’ Tony Stewart’s SRX Short Track Series as Cup driver competes
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A 23XI president joked that NASCAR president Jim France “had to die” for the team to get better charter terms
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Hamlin says he doesn’t like France family
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One of Jordan’s advisers writes that Hamlin is not a good businessman
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Jordan himself joked that he lost more money at the casino than he paid his driver
The revelations deepened the distrust between NASCAR and several of the biggest names in the garage.
Who appears in court?
Jordan was granted permission to attend the entire trial – a rare occurrence for one party in a civil case – and is expected to be the highest-profile attendee among the plaintiffs. He took the witness stand Friday and expressed his lifelong love of racing and his desire to create a more equitable partnership with NASCAR. He insisted he didn’t want to destroy the sport but said the lawsuit was “against everyone in NASCAR… who was not treated fairly.”
Hamlin confirmed the team was being squeezed by rising costs and the charter system, with “only one side going bankrupt.” He acknowledged that 23XI had turned a profit, but said that was only possible because of Jordan’s ability to attract sponsors, arguing that the model was unsustainable for most teams.
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Front Row Motorsports boss Bob Jenkins detailed cumulative losses of more than $60 million on the new generation of racing cars, with costs rising sharply, while Nascar chairman Steve O’Donnell defended the series’ record, pointing to nine-figure profits but also losses at high-profile events in Chicago, Los Angeles and Mexico City, which he viewed as growth investments.
Heather Gibbs, co-owner of Joe Gibbs Racing, told the jury she felt pressured to sign the charter agreement at the last minute for 2025-31, saying it was like “someone putting a gun to your head” when hundreds of jobs and her late husband’s legacy were at risk.
What are the potential consequences?
A lot. If Jordan and Front Row prevail, a jury will decide on monetary damages. U.S. District Judge Kenneth Bell can adjust the amount, including tripling it under antitrust laws. Even more dramatically, if a monopoly is found, the courts can order structural remedies.
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These may include:
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Force French family to sell NASCAR or tracks it owns
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Compulsory grant of permanent charter
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Restructure or even abolish the current charter system
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Rewriting the Elements of Nasca Governance
If Nascar wins, 23XI and Front Row may struggle to continue operating beyond 2026. Six unallocated concessions reserved for the next agreement may be sold, with private equity firms among potential buyers.
What happens next?
The trial is expected to continue for another week in the Western District of North Carolina. A settlement may be reached at any time, including after a jury verdict, and either party may appeal.
Whatever the outcome, the case has shed light on long-simmering discontent within the sport and raised existential questions about its future. Jordan’s appearance alone highlights how high the stakes have become and how far the fight over NASCAR’s economic model has now stretched.
