Michael Jordan is suing NASCAR because his team claims NASCAR runs an unfair, monopoly-style business model that squeezes race teams financially and locks them into one-sided contracts through its charter system.

Quick Scoop

  • Jordan’s team 23XI Racing (which he co-owns with Denny Hamlin) and Front Row Motorsports have filed an antitrust lawsuit against NASCAR in federal court.
  • They argue NASCAR’s “charter system” gives NASCAR too much control over who gets guaranteed race spots and how TV and prize money are shared, while teams take on huge costs and risks.
  • The lawsuit says NASCAR acts like an illegal monopoly by owning most major tracks, controlling the top stock-car series, and limiting what teams can do outside NASCAR events.

What the Lawsuit Says

  • The teams claim NASCAR “exploited its economic power as the sole premier stock car racing organization in the United States” using “anticompetitive and exclusionary practices.”
  • Alleged practices include:
    • Buying up rival series and key racetracks (including its main stock-car rival ARCA in 2018).
* Forcing teams to use specified cars and terms controlled by NASCAR.

* Restricting teams from running in other competing stock-car series.

The Charter System Problem

  • A charter in NASCAR guarantees a team:
    • A locked-in starting spot in Cup Series races.
    • A share of TV and other central revenues tied to that guaranteed entry.
  • The current charters were set to expire, and in September 2024 NASCAR reportedly gave teams a 112‑page renewal deal with only about six hours to sign it.
  • Most teams signed, but 23XI and Front Row refused, saying:
    • The terms weren’t financially sustainable.
    • The deal would bar them from suing NASCAR, which they saw as an antitrust red flag.

Why MJ Says He Had “No Choice”

  • Jordan testified that he invested tens of millions into 23XI Racing but still feels NASCAR ultimately controls whether his team has a place on the grid year to year, so he doesn’t truly “own” his spot.
  • He said the business model leaves teams acting like fundraisers for NASCAR: they bring sponsors, drivers, and fan interest, but don’t get a proportionate share of the money or decision-making power.
  • Jordan told the court that:
    • “Someone needed to come forward and confront the organization,” and as a newer owner he wasn’t as intimidated as long‑time teams.
* He believed suing was the only way to push NASCAR toward fairer revenue sharing and more secure, long‑term charters for teams.

What This Could Change

  • If the teams win, the court could force:
    • A revamped charter system with stronger ownership rights and longer security for teams.
    • Changes to how NASCAR shares TV and commercial revenue with teams and drivers.
  • The case is being described as a “landmark” antitrust trial that could reshape how NASCAR is governed and how attractive it is for future team investors.

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