Michael Jordan’s racing team, 23XI Racing, has launched a significant federal lawsuit against NASCAR, marking a pivotal moment in the 23XI Racing antitrust lawsuit against NASCAR. The legal battle, which began in October 2024, centers on allegations that NASCAR’s practices unfairly favor existing power structures, raising questions about competition, business interests, and the future course of professional stock car racing.
Jordan’s Entrance and Impact on NASCAR
Since debuting in 2021, 23XI Racing has made notable strides in NASCAR, thanks to Michael Jordan’s partnership with Denny Hamlin. The team, featuring drivers like Bubba Wallace, Tyler Reddick, and Riley Herbst., quickly gained prominence with its No. 23 Toyota car. 23XI Racing’s skilled lineup and its partnership with Joe Gibbs Racing brought both commercial appeal and increased visibility to the sport. Jordan’s ownership not only made history, but also contributed to diversifying NASCAR’s direction and expanding its audience, challenging traditional boundaries within the organization.
Origin of the Antitrust Lawsuit
In October 2024, 23XI Racing took the dramatic step of filing an antitrust lawsuit against NASCAR. Joined by Front Row Motorsports, the team accused NASCAR of creating and enforcing charter agreements that favored the France family and limited access to opportunities, contracts, and revenues for independent teams, drivers, sponsors, and ultimately, the fans. The complaint focused particularly on restrictions that teams say curtail fair competition and lock them into unfavorable agreements. 23XI Racing’s legal challenge quickly escalated into a heated dispute within the racing community and drew national attention to the governance of the sport.
Federal Judge Recommends Settling Dispute
By June 2025, the courtroom struggle between 23XI Racing and NASCAR reached a critical point. Federal judge Kenneth Bell advised both sides to settle, raising alarms about the mounting costs and potential repercussions of the ongoing litigation. The judge’s observation underscored concerns about the broader toll the dispute could take on all parties involved:
“It’s hard to picture a winner if this goes to the mat — or to the flag — in this case. It scares me to death to think about what all this is costing.”
—Kenneth Bell, Judge
Countersuits, Escalation, and Standoff in Court
NASCAR responded to the lawsuit by filing its own countersuit, naming Curtis Polk, who serves as Michael Jordan’s business manager and advisor. NASCAR accused Polk of organizing anticompetitive collective bargaining efforts and threatening to pull teams from the sport’s major races. These sharp exchanges in the courtroom widened the gap between the negotiating parties, making resolution more elusive and causing further division among stakeholders such as race teams, sponsors, drivers, and fans.
Broader Implications of the Legal Showdown
The legal confrontation between Michael Jordan’s 23XI Racing and NASCAR reflects larger issues in motorsports, such as organizational power, competitive fairness, and the evolving relationship between teams and league management. With Judge Kenneth Bell’s call for both sides to consider resolution, the spotlight remains on whether this highly public dispute can be resolved before lasting damage is done to the sport, its participants, and its reputation. The outcome may set precedents for team autonomy, race organization, and the economic landscape of professional racing for years to come.
