Retired NBA Hall of Famer Michael Jordan is at the center of a landmark federal antitrust trial against NASCAR that could dramatically impact the future of the top motorsports series in the United States.
Jordan’s 23XI Racing team, which he co-owns with three-time Daytona 500 driver Denny Hamlin, is suing NASCAR along with another racing team, Front Row Motorsports, claiming the series is a monopoly that bullies its teams into complying with rules and financing that they contend are unfair. The trial began Monday, Dec. 1, in Charlotte, North Carolina, and is expected to last several days.
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Jordan, Hamlin and Front Row owner Bob Jenkins brought the lawsuit last year rather than sign extension agreements on new charters, which are the franchise-type designations that serve as the framework for the revenue stream between NASCAR and the teams. The Jordan and Jenkins teams were the only teams out of 15 to refuse to sign renewals on charter agreements.
The charters are at the heart of NASCAR’s business model, as they guarantee a car a spot in the field each race week as well as a percentage of the purse. Disputes over how they work have dominated the series in recent years, and the outcome of the antitrust suit before U.S. District Judge Kenneth Bell could result in the ouster of 23XI and Front Row Motorsports from the series — or force NASCAR to make a fundamental restructuring of how the series operates.
NASCAR commissioner Steve Phelps has said the series had tried hard to settle the case ahead of Monday’s trial, which is being heard before a jury of six men and three women.
Being chartered guarantees that car a spot in the 40-car field for all 38 races, as well as a defined payout from the weekly purse. Team owners have argued that the revenue model is not viable. The teams wanted the charters to become permanent (they are renewable and revocable), a larger percentage of revenues and a voice in governance, according to the Associated Press.
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During opening statements Dec. 1, Jeffrey Kessler, an attorney representing the 23XI team, cited a NASCAR-commissioned study that found 75 percent of teams lost money in 2024 and added that, over three years, almost $400 million was paid to the France Family Trust. Kessler also said a 2023 evaluation by Goldman Sachs found NASCAR to be worth $5 billion. NASCAR is currently run by Jim France, son of founder Bill France Sr.
Michael Jordan (C), co-owner of 23XI Racing, arrives for trial at the Charles R Jonas Federal Building on December 1, 2025 in Charlotte, North Carolina. Jury selection and opening statements are set to begin in an antitrust lawsuit filed by Jordan’s 23XI Racing team against NASCAR.
“What the evidence is going to show is Mr. France ran this for the benefit of his family at the expense of the teams and sport,” Kessler said, according to the AP.
NASCAR contends it has not violated antitrust law because it has done nothing to restrain trade beyond normal business practices. The series has also argued that payouts in the 2025 charter agreement increased, proving it is not anticompetitive.
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NASCAR has also cited the option for cars to enter races as “open teams” and try to make the field in one of four non-chartered spots on qualifying speed. 23XI and Front Row have been open teams, and while their combined six cars made every race, it cost both organizations millions of dollars in purse money.
According to the AP, the pretrial discovery process revealed NASCAR made more than $100 million in 2024.
“Our fans have been brainwashed with (NASCAR’s) talking points for decades,” Hamlin wrote on social media before the start of the trial. “Lies are over starting Monday morning. It’s time for the truth. It’s time for change.”
NASCAR returns to Phoenix Raceway in 2026 starting in March, highlighted by the Sprint Cup series race, the Straight Talk Wireless 500 on March 8. The NTT INDYCAR Series also returns to the track a day earlier, on March 7. Although Phoenix Raceway will not host NASCAR’s Championship Weekend in 2026, NASCAR will be back in the Valley again for three events, including the Cup Series race, scheduled for Oct. 16-18.
This article originally appeared on Arizona Republic: Why is Michael Jordan suing NASCAR? Trial could impact NASCAR’s future
