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Charlotte, N.C. – The world of NASCAR is bracing for a legal showdown as a federal jury trial kicks off Monday, threatening to shake up the very foundations of the popular American motorsports series. At the heart of the matter are antitrust allegations brought by two teams, Michael Jordan’s 23XI Racing and Front Row Motorsports, against NASCAR.
This high-stakes battle, unfolding in the Western District of North Carolina, has already pulled back the curtain on internal communications, financial details, and a simmering resentment between some of the sport’s top executives and its participants.
Denny Hamlin, co-owner of 23XI Racing alongside basketball legend Michael Jordan, and a three-time Daytona 500 winner, minced no words this weekend. He warned that the two-week trial would be an unvarnished pursuit of truth.
“Our fans have been brainwashed with (NASCAR’s) talking points for decades,” Hamlin posted on social media. “Lies are over starting Monday morning.
It’s time for the truth. It’s time for change.”
NASCAR Commissioner Steve Phelps has stated that the organization made significant efforts to settle the case before reaching this point.
The Core of the Lawsuit
The lawsuit was initiated by 23XI Racing, co-owned by Jordan, Hamlin, and Jordan’s longtime business manager, Curtis Polk. They were joined by Front Row Motorsports, a team led by entrepreneur Bob Jenkins, which famously won the 2021 Daytona 500. These two teams were the only ones among 15 to refuse to sign renewals of the charter agreements presented by NASCAR in late 2024.
For over two years, all 15 teams had been pushing for more favorable terms in these charter agreements. However, the final terms reportedly fell short of their collective demands. Consequently, 23XI and Front Row accused NASCAR of operating as a monopoly and filed their lawsuit under antitrust grounds.
Understanding the Charter System
Introduced in 2016, NASCAR’s charter system functions similarly to the franchise models seen in other major professional sports leagues. A charter guarantees a car a spot in the 40-car field for all 38 races on the schedule and ensures a defined payout from the weekly purse.
Despite these charters, teams have consistently argued that the current revenue model is unsustainable. Their key demands included making charters permanent (they are currently renewable and revocable), a larger share of overall revenues, and a greater say in the sport’s governance.
23XI and Front Row contend that the new charter agreements failed to address these critical demands, leading to their refusal to sign. They allege that NASCAR exerts excessive control over all facets of the racing series, pointing to exclusivity clauses, ownership of most Cup schedule racetracks, and its authority over rules and regulations as evidence of a monopoly.
The two organizations are now also seeking substantial monetary damages from NASCAR to cover legal fees and financial losses incurred this year due to not being chartered, in addition to the lawsuit itself.
NASCAR’s Defense
NASCAR, founded 76 years ago by the Florida-based France family, maintains that it has not violated antitrust law, asserting that its business practices are standard and do not restrain trade.
NASCAR highlights that payouts in the 2025 charter agreement actually increased, which it offers as proof of its non-anticompetitive stance. The organization also points to the option for “open teams” to enter races and qualify for one of the four non-chartered spots. While 23XI and Front Row have operated as open teams and their combined six cars made every race, this approach cost them millions of dollars in purse money.
Pretrial discovery has revealed that NASCAR reported over $100 million in earnings in 2024.
Behind-the-Scenes Revelations
The discovery phase has been particularly contentious, exposing unsavory personal communications from both top NASCAR executives and the two suing teams.
Among the disclosed discussions, NASCAR leadership, including Commissioner Phelps, allegedly referred to Hall of Fame team owner Richard Childress as a “dinosaur,” an “idiot,” and a “stupid redneck.” The conversation also included remarks that Childress “owes his entire fortune to NASCAR” and “needed to be taken out back and flogged.”
Another NASCAR executive reportedly claimed that fans of the sport “can’t read.” Multiple series leaders also allegedly disparaged Hall of Fame driver Tony Stewart’s summer short-track series, SRX, even threatening to shut it down due to NASCAR drivers’ participation.
On the other side, the president of 23XI was found to have said that NASCAR chairman Jim France had to die for the teams to receive favorable charter terms. Hamlin openly admitted his dislike for the France family, one of Jordan’s advisers stated Hamlin wasn’t a good businessman, and Jordan himself reportedly joked that he loses more money in a casino than he pays one of his drivers.
Key Players in the Courtroom
NASCAR has expressed its desire for Rick Hendrick and Roger Penske, two of the most influential team owners in the U.S., to testify. Both Hall of Famers have resisted, filing motions to avoid depositions or, failing that, to limit questioning strictly to charters.
Hendrick and Penske are among a group of owners who have submitted declarations in NASCAR’s favor, defending the charter system. These declarations showcase a united front among the non-suing teams, who fear the disbandment of the charter system should NASCAR lose the case. However, many of these same owners also noted that the 2025 charter agreements still fall short of their complete demands.
NASCAR has also requested that Polk and Hamlin of 23XI be barred from the courtroom before their testimonies. A ruling on this request was pending as of Sunday evening.
Michael Jordan, a North Carolina native who famously led the University of North Carolina to a national championship and previously owned the NBA’s Charlotte Hornets, has received an exemption to be present for the entire jury trial. A spokesperson for 23XI and Front Row stated that Jordan and Jenkins intend to be the public faces of their case.
Potential Outcomes
A settlement remains a possibility at any point during the trial, even after a ruling and subsequent appeals.
Should 23XI and Front Row prevail, the jury would determine monetary damages, which Judge Kenneth Bell could then adjust and potentially triple. Judge Bell would also be tasked with dismantling any found monopoly.
Potential repercussions for NASCAR are significant, including orders for the France family to sell the sport, divest their ownership of racetracks, dismantle the charter system, or implement permanent charters – with a wide range of outcomes possible.
If NASCAR wins, it is unlikely that 23XI and Front Row would remain in business beyond 2026. The six charters currently held aside would likely be sold to other interested parties. The last charter sold commanded $45 million, and NASCAR has indicated strong interest from potential buyers, including private equity firms.