Nationwide — Michael Jordan, who co-owns 23XI Racing, is suing NASCAR in a federal antitrust case that could shake the sport’s foundation. He and his partner Denny Hamlin claim NASCAR’s charter system favors top teams and blocks fair competition for smaller outfits.
The lawsuit, joined by Front Row Motorsports, challenges NASCAR’s 2025 charter agreements, which guarantee teams a spot in races and a share of the purse. According to the Associated Press, Jordan’s teams refused to sign the new agreements, arguing they reinforce NASCAR’s monopoly and limit revenue opportunities.
NASCAR has defended the system, saying payouts have increased and open-entry teams can still compete. Still, 23XI and Front Row argue that even entering races as “open teams” costs millions and leaves them at a financial disadvantage. The dispute also highlights tension between NASCAR executives and team owners, with leaked communications showing insults and personal attacks.
Court filings suggest the trial could be messy. Jordan and Front Row seek financial compensation for lost earnings, legal fees, and potentially a restructuring of NASCAR’s charter system. The France family, who founded NASCAR, could be forced to sell tracks, dismantle charters, or make them permanent if the jury rules in favor of the plaintiffs.
The outcome will shape NASCAR’s future. If NASCAR wins, the charter system stays, but 23XI and Front Row may struggle to survive past 2026. If Jordan and Hamlin win, it could reshape how teams operate, who controls the sport, and how racing money is shared. Either way, the case marks a turning point in U.S. motorsports.