Michael Jordan co-owned 23XI Racing faces NASCAR countersuit amid charter fallout

NASCAR is accusing 23XI Racing of "willfully" violating antitrust laws, tribunal documents show. The institution is co-owned by six-time NBA champion Michael Jordan. 

A contentious two-year dialog play connected caller charter agreements led to the lawsuit. Charters are NASCAR's equivalent of a franchise model. Teams that person charters person a minimum of 36 spots connected each contention weekend.

A 30-page suit filed successful the Western District of North Carolina argued that Jordan's entity, much specifically concern manager Curtis Polk, circumvented antitrust laws by orchestrating anticompetitive corporate behaviour successful transportation with the astir caller charter agreements. Polk is listed arsenic a suspect successful the filing. 

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Nov. 9, 2024; Avondale, Arizona. 23XI Racing squad proprietor Michael Jordan during qualifying for the Cup Series title contention astatine Phoenix Raceway. (Gary A. Vasquez-Imagn Images)

Front Row Motorsports besides declined to motion the caller agreements, which were presented to the teams past September soon earlier the commencement of NASCAR's playoffs. Restaurant entrepreneur Bob Jenkins owns Front Row Motorsports. In summation to Jordan, Polk and operator Denny Hamlin are co-owners of 23XI Racing.

The charters were fought for by the teams up of the 2016 play and person doubly been extended. The latest hold is for 7 years to lucifer the existent media rights deal. 23XI and Front Row refused to motion and sued, alleging that NASCAR and the France family, who ain the banal car series, are a monopoly.

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NASCAR was defeated successful circular 1 successful court. The 2 teams person been recognized arsenic chartered organizations for the 2025 play arsenic the ineligible quality winds done the courts. NASCAR has besides appealed a determination to person the lawsuit dismissed.

"Today’s counterclaim by NASCAR is simply a meritless distraction and a hopeless effort to displacement attraction distant from its ain unlawful, monopolistic actions," lawyer Jeffrey Kessler, who is representing 23XI and Front Row, said successful a statement.

Oct 27, 2024; Homestead, Florida, USA; 23XI squad proprietor Michael Jordan watches during the Straight Talk Wireless 400 astatine Homestead-Miami Speedway. (Jasen Vinlove-Imagn Images)

"NASCAR agreed to the associated negotiations that they present attack. When those associated negotiations failed, they utilized idiosyncratic negotiations to enforce their charter terms, which astir of the teams decided they had nary prime but to accept."

The counterclaim suggested that Polk was the ringleader successful the combat against the existent charter proposals. NASCAR lawyer Christopher Yates told the Associated Press that Polk lacks a implicit knowing of NASCAR's concern model.

The NASCAR Cup Series logo arsenic drivers contention astatine Bristol Motor Speedway. (Mark Humphrey/Pool Photo via USA Today Network)

"Curtis Polk fundamentally orchestrated and threatened a boycott of 1 of the qualifying races for a large event, and others did not spell on with him," Yates said. "He got different teams to boycott a gathering that was required by the charter. When you person a threatened boycott of qualifying races that are covered by media, that’s not a bully happening for different contention teams, not a bully happening erstwhile you are trying to collectively turn the sport."

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The qualifying contention successful question was past year's brace of 150-mile duels that acceptable the tract for the Daytona 500.

"I don’t deliberation Mr. Polk truly understands the sport," Yates added. "I deliberation helium came into it, and his presumption is it should beryllium overmuch much similar the NBA oregon different league sports. But it’s not. No motorsport is similar that. He’s done a batch of things that mightiness enactment successful the NBA oregon mightiness beryllium OK successful the NBA but conscionable are not due successful NASCAR."

Meanwhile, Jordan has antecedently stated that helium is suing NASCAR connected behalf of each the teams truthful everyone tin beryllium connected adjacent footing successful presumption of benefits arsenic a subordinate successful the apical motorsports league successful the U.S.

The Associated Press contributed to this report.

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