Michael Jordan sued NASCAR because he believed its business model and charter system were unfair, anti-competitive, and made it nearly impossible for his 23XI Racing team to be financially sustainable in the long term.

Quick Scoop: What the Lawsuit Was About

Jordan’s 23XI Racing (co-owned with Denny Hamlin) joined Front Row Motorsports in filing a federal antitrust lawsuit against NASCAR in late 2024. The core claim was that NASCAR was operating as an illegal monopoly that controlled too much of the money, rules, and access to the top Cup Series races.

Key reasons he sued:

  • NASCAR’s charter system
    • Charters are like licenses that guarantee a car a starting spot in all Cup Series races and a defined share of prize money.
* In September 2024, NASCAR gave teams a 112‑page charter extension proposal and very little time to sign, calling it a “final offer.”

* Thirteen of fifteen chartered teams signed; Jordan’s 23XI Racing and Front Row refused, saying the deal locked in an unfair economic structure and underpaid teams.
  • Alleged monopoly and anti‑competitive behavior
    • The lawsuit argued NASCAR:
      • Controls almost all of the Cup Series tracks, limiting potential competitors.
  * Forces teams to use “Next Gen” cars and parts from NASCAR‑approved suppliers, which the suit said drove up costs and restricted competition.

  * Uses charter terms and non‑disparagement clauses that leave teams with little leverage and risk punishment for speaking out.
  • Broken economics for teams
    • Jordan and other owners said teams invest tens of millions, yet struggle to turn a profit under current revenue sharing and cost structures.
* Jordan has reportedly invested around tens of millions of dollars (one report cites about 40 million dollars) into 23XI and still did not truly “own” a permanent place on the grid, because NASCAR could ultimately control charters and grid spots year to year.

* When 23XI and Front Row raced as “open” (non‑charter) entries in 2025, they made every race but claimed they suffered major financial losses due to lacking guaranteed payouts.
  • Why Jordan said he personally stepped up
    • In court, Jordan testified that “someone had to step forward and challenge” NASCAR’s system and that he felt compelled to do it, even at significant risk to his team.
* He framed the suit as about making the sport healthier and more sustainable for teams, drivers, employees, partners, and fans, not just about his own bottom line.

What Happened in the Case

  • The case went to trial in federal court in Charlotte, North Carolina, in late 2025, drawing heavy media attention because of Jordan’s involvement and the potential to reshape NASCAR’s business model.
  • After several days of testimony—including Jordan himself—the parties reached a settlement in December 2025.

Key outcomes from the settlement

Different outlets report overlapping details, but together they indicate:

  • NASCAR agreed to make team charters essentially permanent (“evergreen charters”), instead of short‑term, easily revocable assets.
  • Teams, including 23XI and Front Row, secured charters and greater long‑term security, giving them a more stable asset to build equity and attract investment.
  • Reports also note structural tweaks like:
    • Charters for all teams becoming permanent.
* A “three‑strike rule” returning for performance, rather than purely discretionary removal of charters.

* Teams getting a share of NASCAR’s international media rights revenue for the first time.

Jordan described the resolution as creating a foundation where teams have more voice, the ability to build equity, and better conditions to invest in the sport’s future.

Multi‑Viewpoint Snapshot

  • Jordan and teams’ view
    • NASCAR held too much power over schedules, tracks, rules, and money.
    • The charter offer boxed teams into long‑term, low‑leverage deals and stifled innovation and profitability.
* The lawsuit was necessary “tough love” to modernize the sport’s economics and attract more serious investors.
  • NASCAR’s view
    • It denied any antitrust violation, arguing its centralized model is what kept the series stable for decades.
* It pointed out that most teams signed the new charter deal and that non‑chartered “open” entries can still race, so the system isn’t a closed monopoly.

* It maintained that the 2025 agreement actually increased team revenue and that dismantling the charter structure could damage the sport.
  • Impact on fans and the sport
    • The case forced public scrutiny of how money flows in NASCAR and whether team owners can actually make sustainable returns.
* The settlement’s permanent charters and revenue tweaks are seen as moves that could stabilize teams and encourage long‑term investment—like Jordan’s—rather than drive them out.

Latest context (as of early 2026)

By early 2026, 23XI Racing is still on track, and Jordan has publicly discussed both the challenges of the lawsuit and the importance of the settlement in giving his team and others a more secure place in NASCAR. The Daytona 500 win by 23XI in February 2026 has further highlighted how the team’s legal fight and on‑track success are now intertwined in the broader story of NASCAR’s modern era.

Bottom note: Information gathered from public forums or data available on the internet and portrayed here.