Michael Jordan’s Racing Team Is Suing NASCAR: Here’s What It Means
On Oct. 2, both associations filed an antitrust lawsuit calling out NASCAR and its owner for using anticompetitive practices, which makes it difficult for all to compete on an equal playing field, CNBC reported.
Why is Michael Jordan’s 23XI Racing, along with Front Row Motorsports, suing NASCAR?
In contrast to most professional sports leagues, which are owned and run by their teams and owners, NASCAR remains privately owned and managed by one family: the Frances. The filing claims that NASCAR and the France family lack transparency and fair competition, as well as “control the sport in ways that unfairly benefits them at the expense of team owners, drivers, sponsors, partners and fans,” according to the news outlet.
“Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans,” 23XI Racing and Front Row Motorsports stated in a joint statement, according to CNBC.
In 2020, Jordan launched 23XI Racing with his trusted business ally Curtis Polk and racecar driver Denny Hamlin. Front Row Motorsports has been in the industry since 2004 and was created by Bob Jenkins, a full-time racer since 2005. Jordan is the first Black majority owner of a full-time NASCAR racing team since Wendell Scott.
“It’s actually pretty simple in my opinion. When I look around, I see that the best and most competitive sports in the world understand that when teams thrive, fans benefit, and that everyone who invests in making the sport a success should share fairly in that success,” Hamlin said, according to 23XIRacing.com. “With the right changes, we can certainly make that a reality in racing.”
Both teams criticize how NASCAR manages its business infrastructure by buying elite racetracks only to be used for its races, allegedly forcing teams to purchase car parts from a supplier of NASCAR’s choice. On top of that, those who participate in the firm’s races cannot partake in other stock races.
According to the lawsuit, running a single chartered team for a full season of Cup Series races costs around $18 million annually. In 2016, 19 team owners were originally awarded charters, but only eight teams still compete in the sport.
Jenkins has been a part of the racing industry for two decades and says that he has not made a profit.
“We need a more competitive and fair system where teams, drivers and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league,” he said, per CNBC.
Nearly a year ago, NASCAR inked a seven-year media deal with FOX, NBC, Amazon and Warner Bros. worth a whopping $7.7 billion — a 40% increase compared to its previous deal.
“Today’s action shows I’m willing to fight for a competitive market where everyone wins. Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track,” Jordan said in a statement. “I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans.”