Michael Jordan's 23XI Racing, in collaboration with Front Row Motorsports, initiate an antitrust lawsuit against NASCAR and its leader.
"Jordan's 23XI Racing, in partnership with three-time Daytona 500 champ Denny Hamlin, and Front Row Motorsports, accuse NASCAR of employing "anti-competitive tactics to stifle fair play in the sport."
"We share a love for racing and the adrenaline rush of competition. Beyond the track, we all believe that transformation is essential for the sport we adore.
"Joining forces, we filed this antitrust lawsuit to ensure that racing flourishes and transforms into a more competitive and equitable sport, benefitting teams, drivers, sponsors, and, most significantly, fans," the joint statement from 23XI Racing and Front Row Motorsports stated.
"No other prominent North American professional sport is managed by a singular family that enriches themselves through such unchecked monopolistic practices," the statement further asserts.
In the federal antitrust lawsuit, submitted on Wednesday and obtained by CNN, the teams claimed, "The France family and NASCAR are monopolistic bullies.
"And bullies will continue to abuse their power until their targets stand up and refuse to be victims."
CNN reached out to NASCAR for comment.
Jordan desires a fair system for all teams and an environment where everyone has a shot at success.
"I am passionate about the sport of racing and the fervor of our fans, but NASCAR's current management is unfair to teams, drivers, sponsors, and fans," the five-time NBA MVP stated in his statement. "This action showcases my determination to establish a competitive market where everyone triumphs."
Bob Jenkins, Front Row Motorsports’ owner, echoed similar sentiments.
"I have been an integral part of the racing community for two decades and couldn’t be more proud of the Front Row Motorsports team and our achievements. But the time has come for change," Jenkins said.
"We require a more competitive and fair system where teams, drivers, and sponsors can be compensated for our collective investment by building lasting enterprise value, as every other successful professional sports league does."
The lawsuit is a consequence of over two years of bargaining between NASCAR and racing teams. NASCAR aimed to revise its charter, which encompasses the revenue sharing model.
"Established in 1948, NASCAR's business model has been predicated on the notion of independent stock car racing teams investing their own money and time for the chance to compete in premier stock car events at tracks primarily owned by NASCAR's ruling family, the Frances," the lawsuit specifies.
"Regardless of what teams put in, NASCAR maintained that they would be rewarded with the glory of race victories and titles. However, even some of NASCAR's most prosperous racing teams have departed the sport with little to show for it, financially speaking, while the France family prospered handsomely."
Jenkins has stated that he has never posted a profit since joining NASCAR in 2005, per Associated Press.
While 23XI Racing and Front Row Motorsports asserted they held out from signing the new agreements, the lawsuit alleges that some teams felt they had no other option but to comply.
"Faced with a take-it-or-leave-it deal, and with no other alternative for premier stock car racing in the United States, most of the teams agreed that they had to sign. One team described its signing as 'compelled,' and another stated it was 'under duress.' A third team stated, 'NASCAR put a gun to our heads and we had to sign,'" the lawsuit adds.
NASCAR's Cup Series is currently racing in the playoffs Round of 12. On Sunday, teams will race at Talladega Superspeedway for the YellaWood 500 in Alabama.
Currently, 23XI Racing's No. 45 and No. 23 cars are positioned 9th and 19th, respectively, in the owners' standings."
The partnership between Jordan's 23XI Racing and Front Row Motorsports is driven by their shared passion for the thrill of racing and their belief in the need for transformation within the sport. They filed a federal antitrust lawsuit to advocate for a more competitive and equitable sport, aiming to benefit all stakeholders, including teams, drivers, sponsors, and fans.
