Michael Jordan’s 23XI Racing Takes NASCAR to Court Over Monopolistic Practices

CHARLOTTE, N.C. — The legal battle between NASCAR and two race teams, including Michael Jordan’s 23XI Racing, began on December 4, 2025. The teams are suing NASCAR, claiming it engages in monopolistic practices related to the sport’s charter system.

Federal Judge Kenneth D. Bell has warned that no one will emerge unscathed from this case. Throughout public hearings and closed-door meetings, he emphasized the importance of finding common ground between 23XI Racing and NASCAR to avoid harm to the sport.

The trial marks a turning point as 23XI co-owner Denny Hamlin, also a top NASCAR driver, voiced serious allegations against NASCAR’s leadership. During hours of testimony, he described NASCAR as an illegal monopoly, asserting that the charter agreement presented to teams in 2024 was unfair and threatened financial stability.

“We want to be made whole for what NASCAR did to us,” Hamlin stated, highlighting the broader implications of the suit.

NASCAR’s defense involves questioning Hamlin about his previous supportive comments, while revealing a series of internal communications among executives, exposing tensions around charter negotiations. NASCAR commissioner Steve Phelps expressed concern in one email about the fragile situation, warning it could escalate further.

The courtroom atmosphere intensified with damning messages surfacing that disparaged team owners, suggesting deeper underlying issues within NASCAR.

Front Row Motorsports owner Bob Jenkins testified that his team has not made a profit in over two decades, illustrating the struggle many teams face under current agreements.

Notably, during jury selection, many jurors were unfamiliar with NASCAR but recognized Jordan, who sat in the courtroom, an element that added to the surreal atmosphere of the proceedings.

If the plaintiffs win, NASCAR could face significant financial damages, potentially reaching $300 million. Conversely, if NASCAR prevails, it could lead to the closure of two teams dedicated to the sport.

This trial is expected to expose more tensions and could alter the future of NASCAR.