In 2020, Michael Jordan brought his fierce competitiveness to the NASCAR industry. He partnered up with driver Denny Hamlin and launched 23XI Racing as the majority stakeholder.
They purchased a charter, which guaranteed them a spot in the top-level Cup Series, turning Jordan’s longtime fandom and passion into a business opportunity. Since he joined, the team has been semi-competitive, winning nine NASCAR Cup races.
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However, in October 2024, Jordan and his team filed a lawsuit against NASCAR for allegedly operating a monopoly in its highest race series, essentially having complete control over the entire market through its owners, the France and Smith families.
The proper lawsuit states that NASCAR limits teams to a single-source parts supplier that’s owned by them and decides which roads they buy, not allowing any other organization to race on those same roads. Additionally, the suit alleges that NASCAR restricts teams from competing in other racing series, thereby preventing outside competition.
As a result, the teams struggle to make a profit, as the current revenue structure is the lowest in all of sports; only 25 percent of the revenue goes to the teams involved. Each team receives around $10 million per year, but the cost to race is nearly double that amount, ranging from $18 to $20 million. Essentially, teams need to secure sponsorships to offset the losses, just to break even.
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“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins,” said Jordan after filing the lawsuit in 2024.
Arguments from NASCAR
Due to the stated facts, Jordan and his team rejected the new charter contract, which they believe is linked to the entire unfair system. In response to the lawsuit, NASCAR stated that MJ and his team are seeking a charter that no one else has and that lasts for a longer period of time.
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Another argument they had is that teams didn’t really suffer any real damage because they can still participate as “open” teams, meaning without a charter, while the suit is in process.
With that, NASCAR stated that it increased the payments to teams in a new charter contract, implying that it is doing justice to teams, rather than not.
“They make bold announcements that ignore the evidence. The real problem is plaintiffs’ claim that they are saying something is anticompetitive for something they joined,” NASCAR attorney Chris Yates said.
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Current state of the lawsuit
The case has advanced to several key procedural steps as of today. The judge Kenneth Bell denied the request for a preliminary injunction that would have temporarily restored Jordan and his team’s charter status.
The court defined the definitive market as “premier stock-car racing”, which strengthens the argument that NASCAR holds a monopoly in this specific segment. The judge also permitted full discovery involving the financial aspects of major team owners, Rick Hendrick and Roger Penske, rejecting requests for exemption.
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“The trial of this matter will be publicly and fairly contested under the relevant rules and law, without regard to the notoriety of the companies and individuals involved. No company or individual will be accorded special treatment,” said Bell on November 11, 2025.
The full trial is scheduled and expected to begin on December 1, 2025.
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This story was originally reported by Basketball Network on Nov 20, 2025, where it first appeared in the Off The Court section. Add Basketball Network as a Preferred Source by clicking here.
