Although only two months old, the NASCAR lawsuit has progressed by leaps and bounds. The lawsuit involved billionaire Michael Jordan facing off against the multi-billion-dollar organization NASCAR. Jordan, six-time NBA champion and current 23XI Racing owner, is leading the charge against the sport’s ‘monopolistic practices.’
However, Jordan’s fold seems to be on the losing side, as Jim France’s 76-year-old sport dropped the latest domino in its defense.
Michael Jordan’s NASCAR lawsuit getting thinner?
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Notably, both 23XI Racing and Front Row Motorsports stood out when the 2025 charter agreement dropped. Their theory was simple: NASCAR exercised excessive control over the stock car racing market, and its charter system was economically disastrous for teams. However, the federal court already tried disassembling, one foundation of Michael Jordan’s NASCAR lawsuit.
On November 8th, U.S. District Court Judge Frank Whitney denied the first preliminary injunction request permitting 23XI and FRM to race as chartered teams next year. The reason cited was the lack of evidence for “immediate, urgent irreparable harm.”
Now, in NASCAR’s recent round of attacks, the same argument came back. The sport was required to respond to Michael Jordan and Co.’s second preliminary injunction request. The response came, as Bob Pockrass updated on X: “Even with their manufactured evidence, Plaintiffs still fall far short of a clear showing of irreparable harm. Their new submissions underscore that any claimed harm remains speculative, self-inflicted, and redressable with monetary damages.”
NASCAR’s deadline to file response to 23XI/Front Row most recent preliminary injunction motion was today and it was just filed. (1/2)
— Bob Pockrass (@bobpockrass) December 10, 2024
This comes right after the sport called for a complete dismissal of the NASCAR lawsuit. The sanctioning body argued that the plaintiffs “confess” the charters are equitable, even preferential, to the two teams. It further claimed the charters’ broadcast revenue split is “undeniably fair and advantageous” to Jordan and FRM. In 2023, NASCAR signed a $7.7 Billion media rights deal, and teams accordingly demanded larger slices of the pie. Although the 2025 charter deal reportedly involves greater slices, exact figures are unknown to the public.
Furthermore, NASCAR urged Judge Whitney to find Michael Jordan and Co.’s complaint “reflects nothing more than dissatisfaction with business negotiations that didn’t go their way.” In support of their argument, the sport’s executives dug into a previous case that did not end well for the plaintiffs.
Jim France and Co. getting ‘personal’ with MJ!
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As we all know, Michael Jordan is one of the few NBA legends whose names are evergreen. Yet as he pursues his NASCAR racing interests, Jordan’s basketball career comes back to bite him differently. Jim France and Co. sought to bolster their argument in the NASCAR lawsuit by citing a case that the NBA won in 1994.
In Independent Entertainment Group v. NBA, the NBA refused to let players join a pro-summer league promoted by another organization. A pay-per-view broadcast would have been available in this deal. The rival organization sued the NBA. It claimed the sport and its teams had unlawfully conspired to restrain the player’s ability to play in another league during a part of the year when players were not playing NBA games.
However, the NBA soon got the upper hand as U.S. District Judge A. Andrew Hauk rejected the lawsuit. He determined that exclusive employment obligations are generally lawful under antitrust law. Hauk pointed out the rival league was trying to “free-ride on the NBA’s investment in its star players.”
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As shown in antitrust litigation involving the USFL and NFL over-signing players, “exclusive employment agreements lawfully prevent such free-riding as a matter of law.” According to NASCAR, the same principle applies to charters, which protect NASCAR’s investment in star teams.
As the NASCAR lawsuit develops, let’s see what more intriguing updates follow. For now, though, Michael Jordan’s side looks to be struggling.
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