“The France family and NASCAR are monopolistic bullies.” 23XI Racing and Front Row Motorsports minced no words after a rapid fallout with the sanctioning body. But it was nothing sudden—it took years of trying to adapt to the 2016 charter model. When that did not work, teams tried to negotiate with NASCAR to consider their needs. Their demands fell on deaf ears—and even now Michael Jordan is at risk.

So the negotiation battle is ongoing. With the France family trying to choke the teams in a stranglehold, Jordan and his compatriots are taking it to court. “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. 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,” Michael Jordan stated.

Tensions are high as both teams’ futures hang in the balance. With NASCAR recently signing a $7.7 billion media deal with Fox, NBC, Amazon, and Warner Bros. Discovery, the timing of the legal action couldn’t be worse, leaving everyone on edge.

Even amidst deteriorating charter conversations with NASCAR, 23XI and FRM held hopes for expanding their teams. The two-car race teams hoped to seat a third driver in a Cup Series car next year. But that dream looks bleak at best, as both are at an impasse with the sanctioning body. After refusing to sign the new charter agreement, Michael Jordan and Co. filed a lawsuit recently, detailing all their demands. While they are requesting a preliminary injunction from the court to allow them to race under the current agreement, NASCAR’s predetermined moves make it harder for them.

In an episode of The Teardown, journalist Jeff Gluck broke down how the France family has choked Michael Jordan’s racing ambitions. “23XI is currently in the process of acquiring a third charter. 23XI and Stewart-Haas Racing entered into a purchase agreement on August 7th. So 23XI trying to expand into three cars with an agreement to buy the charter…But the transaction is still an escrow and requires approval from NASCAR. But Stewart-Haas went ahead and signed the agreement.”

Bob Jenkins, FRM owner, is in a similar soup. As in Michael Jordan‘s case, Jim France cut short his dreams of expanding despite the purchase deal being finalized. Gluck continued on this topic, “Same for Front Row – it says, Front Row bought the third charter from Stewart-Haas in May. But that transaction is still an escrow and requires approval from NASCAR. And that charter for next year has already been signed over.” 

These expanding thoughts aside, the injunction to let the drivers keep racing would take some time. The court would grant it by the end of the year. But all of it is a matter of speculation, as the teams are still at the dynastic family’s disposal.

Michael Jordan and 23XI Racing are well-connected and have enormous resources. On the other hand, Jenkins is in a tighter spot than Jordan, but his determination to fight for a fair sport is no less.

The winds of change need to come

“We’re going to come to a very good result for the race teams and the industry as a whole,” were the words of NASCAR president Steve Phelps in November 2023. “I’ve said that to our race teams and, honestly, anyone who’s listened for the last year. I believe that to be true. Would it be a fair deal? It’ll be a deal that will help the teams with their enterprise value to be more competitive on the racetrack. It’s a negotiation, but we’ll end up in a good place. I’m very confident about that.” But certainly for some, it’s not a deal that they could work around.

The 2016-2024 charter system has a glaring economic flaw. For this reason, only 8 out of the original 19 team owners who signed the original deal still remain in the sport. Furniture Row Motorsports sold its charter at the end of 2018 for $6 million, a year removed from its Cup Series championship with Martin Truex Jr.

The departure of this stellar team is proof that no path to profitability existed for teams. But while one had to depart another small team owner, Brad Keselowski sounded obligatory as he signed the charter deal. “We know we want to run NASCAR for a long time to come and signing the charter agreement is a statement to our commitment to doing just that,” Keselowski said.

Now SHR, a 70-time Cup-winning team, is also on its way out. Bob Jenkins admitted that over the 20 years he has worked in the sport, he has never turned a profit from Front Row Motorsports.

So he wants to make it a more equitable sport and also to leave something for his family. For that reason, Jenkins is highly motivated in the lawsuit process. “I have been part of this racing community for 20 years and couldn’t be more proud of the Front Row Motorsports team and our success. But the time has come for change,” Jenkins added. “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.”

Evidently, Michael Jordan and Bob Jenkins are seeking to rock NASCAR’s core foundations. Let us wait and see how far this rolls and if the sanctioning body bends to their demands and ensures their ambitions are fulfilled.