Basketball icon Michael Jordan has taken a dramatic step into a new arena: the courtroom. His NASCAR team, 23XI Racing, co-owned with driver Denny Hamlin, has filed a federal antitrust lawsuit against the sport's governing body, NASCAR, and its affiliated arm, International Speedway Corporation (ISC).
The Core of the Legal Dispute
The lawsuit, filed in the US District Court for the Northern District of Illinois, centres on allegations of anti-competitive behaviour that 23XI Racing claims has stifled its business and violated the Sherman Antitrust Act. The legal action was initiated on 5th December 2025.
The team's primary grievance involves NASCAR's ownership of both the sanctioning body for the premier Cup Series and a significant portion of the tracks where races are held, notably through ISC. 23XI Racing argues this dual role creates a conflict of interest and allows NASCAR to exert unfair control over key commercial aspects of the sport.
The complaint specifically alleges that NASCAR has used its power to restrict teams from pursuing their own sponsorship deals and hosting independent fan events at tracks. This, the team contends, limits their ability to generate revenue outside of the centralised television and prize money distribution, placing an unsustainable financial burden on team owners.
Financial Pressures and the Charter System
At the heart of the financial strain is NASCAR's "charter" system, introduced in 2016. These charters are essentially permanent entries in the Cup Series, guaranteeing a spot in every race. However, 23XI Racing claims the economic model is broken.
The lawsuit points to a stark disparity: while media rights deals have soared in value, the share of revenue flowing to the teams has not kept pace. Teams are responsible for enormous operational costs, including cutting-edge technology, personnel, and multi-million dollar driver contracts. 23XI Racing asserts that the current model forces team owners to subsidise the sport from their own pockets to remain competitive.
"The economic model is broken," the lawsuit states, alleging that NASCAR's practices have depressed the value of the very charters it sells and have led to a situation where team operations are not financially viable under the current structure.
Potential Ramifications for the Sport
This legal challenge, spearheaded by a global superstar like Michael Jordan, represents one of the most significant threats to NASCAR's traditional business model in decades. The outcome could reshape the power dynamics and revenue-sharing agreements within American motorsport.
If successful, the lawsuit could force NASCAR to decouple its commercial interests from race track ownership or fundamentally revise its financial agreements with racing teams. It seeks unspecified monetary damages and, crucially, injunctive relief to prevent the alleged anti-competitive conduct from continuing.
The case also highlights the growing tension between the historic governing bodies of sports and the team owners who carry the substantial financial risk of participation. A victory for 23XI Racing could empower other teams across different series to challenge similar structures, potentially leading to a wave of legal and commercial reform in professional motorsport.
NASCAR has yet to issue a formal public response to the specific allegations in the lawsuit. The sporting world will now watch closely as this high-stakes legal battle between a sporting legend's franchise and a premier racing institution unfolds in federal court.
