The Legal Battle Between NASCAR and Racing Teams Intensifies
The tense dispute between NASCAR and two of its teams, who filed a federal antitrust lawsuit, has escalated to a new level. The conflict, which has been simmering for months, came to light during a heated hearing that revealed communications with offensive and revealing language from key figures, including the legendary Michael Jordan. In one of the most prominent exchanges, Jordan, co-owner of the 23XI Racing team, used derogatory words when referring to Joe Gibbs Racing and the other 13 teams that signed the new NASCAR agreements last September. “The teams will regret not joining us,” Jordan wrote in a text message to Curtis Polk, his business manager and partner at 23XI Racing, along with Denny Hamlin. 23XI Racing and Front Row Motorsports were the only teams that refused to sign the extensions of the franchise agreements, similar to franchises in other sports. These teams sued NASCAR, accusing it of monopolistic practices. They argue that they risk closing their operations if the series sells its licenses. The details revealed on Thursday, through documents related to the discovery, were especially explosive. NASCAR, owned by the France family, with Jim France as chairman and Lesa France Kennedy as executive vice president, has been the subject of direct criticism.In a conversation between Jordan and Polk, the price of the licenses was discussed. Jordan wrote: “I will not sell, even if they were for sale.” Polk replied: “This is just a hobby!”, to which Jordan answered: “I can only play golf to a certain point.” In another exchange, Jordan and Polk addressed the cost of signing a pilot, whose name was omitted. Jordan replied: “I’ve lost it in a casino. Let’s do it.” NASCAR also had its own series of email exchanges with inappropriate language among its top executives. Commissioner Steve Phelps, in an email, stated that the negotiations had not been productive and that an initial licensing proposal offered “zero wins for the teams.” In another message, he wrote that the licenses “must reflect a middle ground or we are dead.” Steve O’Donnell, NASCAR president, also criticized an initial version, arguing that it would return the NASCAR model to the conditions of 1996 with an attitude of “dictatorship, motorsports, redneck, southern, small sport”. 23XI and Front Row’s lawyer, Jeffrey Kessler, argued that NASCAR’s exchanges, as well as contingency plans on how NASCAR could avoid competition, demonstrate that the organization is monopolizing the car racing market. NASCAR, for its part, has maintained in legal documents that 23XI and Front Row waived any rights to six combined charters by refusing to sign the extensions last September. The teams began the season recognized as charter holders, which guarantees the entry of 36 teams on the grid of 40 cars each week. Charter teams also receive a substantially larger percentage of the payments. The order that recognized the six cars as licensed has been revoked and they are currently competing as “open” teams. 23XI Racing driver Tyler Reddick has a clause in his contract that allows him to leave if his car is not licensed; Kessler indicated that Reddick and the sponsors have notified that 23XI is in breach. U.S. District Court Judge Kenneth Bell warned during the hearing that NASCAR’s licensing system is at stake, depending on the outcome of the case. Arguments before Bell focused on the teams’ urgent request to restore their status as licensed teams by the end of the season, before a trial scheduled for December 1. NASCAR has indicated that it plans to begin selling the licenses immediately. Bell asked NASCAR’s lawyer why one of the four open positions could not be sold and then address the matter once the case is resolved. NASCAR has maintained that it cannot be forced to do business with teams it does not want to work with. The judge said he would rule on the request next week after the first playoff race of the season. Reddick and Bubba Wallace are in the playoff group for 23IX, and also Hamlin, who races for JGR. Outside of court, Jordan said he has been open to a settlement but is willing to take the case to trial. Kessler warned that if 23XI and Front Row do not regain their licenses, they will close their operations in 2026. Jordan expressed his commitment to the sport: “I’ve always said that I want to fight for the improvement of the sport. Although they tried to point out that we’ve made some money, we’ve had a successful business. That’s not the point. The point is that the sport itself needs to change continuously for the fans and for the teams. “As well as for NASCAR, also, if they understand,” Jordan said. “I feel like we made a good statement about it today and I hope to go all the way. If I have to fight to the end, for the good of the sport, I will.”23XI president Steve Lauletta reportedly wrote that “Jim’s death is probably the solution” for teams to get better terms in deals. Hamlin, for his part, expressed his deep “contempt for the France family.”
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