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  Debate

Debate

Is Michael Jordan's 23XI Racing justified in their legal battle against NASCAR over the charter deal?

The doomsday scenario has finally become a reality. 23XI Racing and Front Row Motorsports, having declined to accept the charter deal, have now filed a lawsuit against NASCAR and the France family.

Michael Jordan and Denny Hamlin had a firm stance against the governing body, calling for fair negotiations to conclude the charter negotiations. This was just before the start of the playoffs, and the ball was in NASCAR’s court to come to terms or open a dialogue.

The only team that chose to stick by 23XI Racing, defying NASCAR, was FRM. And the two have now decided to take a legal route to get a fair and just deal, which NASCAR has failed to deliver so far. This update was shared by Bob Pockrass on X.

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“23XI Racing and Front Row Motorsports have filed a lawsuit on anti-trust grounds against NASCAR in federal court in North Carolina.” He also went on to share a glimpse of the legal notice filed by Michael Jordan and Co. against the governing council of stock car racing.

“This is a case about unlawful monopolization of premier stock car racing by the France family in order to enrich themselves at the expense of the premier stock car racing teams that fans come out to see and that sponsors and broadcasters value.”

For a long time, NASCAR’s power and control over the sport had gone unchecked. Even the likes of Hendrick Motorsports, Joe Gibbs Racing, Team Penske, and Richard Childress Racing had to bend the knee. But, it looks like 23XI Racing alongside FRM is determined to bring about changes to the system for the premier division of stock car racing.

What’s your perspective on:

Is Michael Jordan's 23XI Racing justified in their legal battle against NASCAR over the charter deal?

Have an interesting take?

23XI Racing and FRM looking to keep their status as chartered teams until the end of 2025

The teams knew that they didn’t have a lot of leverage in trying to get their demands fulfilled against NASCAR. However, a united front of all teams could’ve been able to persuade the custodians of the sport to take a look into those demands. Unfortunately, they weren’t able to hold out as NASCAR adopted a divide-and-rule strategy.

Another power NASCAR held over the teams was the threat of taking over their charters. Now, the owners who have invested tens of millions of dollars in the sport would do anything to stay afloat. So they agreed to the terms set by NASCAR. But 23XI Racing and FRM are aware of this power the France family can exercise against them.

To dodge such a situation, they are asking for a preliminary injunction that would allow them to compete next year as chartered race teams. “One of the new 2025 charter provisions is that the teams release NASCAR of antitrust claims. As part of the lawsuit, 23XI and Front Row are asking for a preliminary injunction that will allow them to compete as chartered teams in 2025 while still proceeding with the lawsuit.” Bob Pockrass added.

To represent their interests and concerns well in court, Michael Jordan and Bob Jenkins have retained Jeffrey Kessler. And going by his words, it looks like NASCAR will be forced to make changes to how the sport is run.

We just want fairness, say 23XI Racing co-owner Curtis Polk

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Remember it was Polk who sort of initiated the conflict with a message pinned on his shirt during the Southern 500 race? And all this time, the message from 23XI Racing Camp has been about a fair and equitable system to run the sport. However, it looks like NASCAR wasn’t having any of it and stayed firm on its stance—take it or leave it.

The concerns aren’t just vague or a plot to get a better piece of the revenue pie. When NASCAR’s winningest team, Hendrick Motorsports, can’t turn a profit, it only goes to show the issues that have gripped stock car racing. While NASCAR had its way over the year, the dynamics have changed this time around, which could see them battling in the court.

Despite this tussle, Curtis Polk reaffirmed the stance of his team in getting a fair deal. “We just want fairness. It’s not about a particular issue or five particular issues. When you look at the financial inequality that exists here, how is anybody going to say that’s fair?” He was quoted saying this via the New York Times.

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It will be interesting to see what NASCAR’s response to this lawsuit will be and whether there will be any implications for the two teams for exercising this option.

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