The Legal Battle Between NASCAR and Racing Teams Comes to Light with Explosive Revelations
The tense legal dispute between NASCAR and two of its teams, who filed a federal antitrust lawsuit, has escalated to a new level. During a heated hearing, emails and text messages with explicit language were revealed, coming from prominent figures such as 23XI Racing team owner Michael Jordan. In one of the exchanges, the NBA legend and co-owner of 23XI Racing, used derogatory language towards Joe Gibbs Racing and the other thirteen teams that signed the new NASCAR franchise agreements last September.23XI Racing and Front Row Motorsports were the only two teams that refused to sign the extensions of the franchise agreements, equivalent to franchises in other sports. These teams sued NASCAR, accusing it of exercising monopolistic practices, a dispute that has marked the year and that, according to the teams, could lead them to bankruptcy if NASCAR sells their franchises. The revelations from Thursday, stemming from documents related to the discovery, were particularly explosive. NASCAR, privately owned by the France family, with Jim France as chairman and Lesa France Kennedy as executive vice chair, also saw exposed email exchanges with offensive language among its senior executives. Steve Lauletta, president of 23XI, suggested that “Jim’s death is probably the solution” for teams to get better conditions in franchise agreements, while Hamlin expressed his deep aversion to the France family, but urged not to sabotage the business. In a conversation between Jordan and Polk, apparently about the price of franchises, Jordan stated that he would not sell, even if they were for sale. Polk replied that this was just a hobby, to which Jordan retorted that you can only play golf for a limited time. In another exchange, Jordan discussed with Polk the cost of signing a driver, whose name was redacted, responding that “I lost it in a casino. Let’s do it.” In NASCAR, commissioner Steve Phelps argued that an initial franchise proposal offered “zero wins for the teams”, and that the agreements should reflect an intermediate position. Steve O’Donnell, NASCAR president, also criticized an early version which, in his opinion, would return the NASCAR model to 1996 conditions. Jeffrey Kessler, lawyer for 23XI and Front Row, argued that these exchanges, along with NASCAR’s contingency plans to avoid competition, demonstrate that NASCAR is monopolizing the market for car racing. NASCAR has maintained that 23XI and Front Row forfeited their 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 in the race each week. Charter teams also receive a significantly larger percentage of the payments. The order that recognized the six cars as franchised has been revoked, and they currently compete as “open” teams. Tyler Reddick, a 23XI Racing driver, has a clause in his contract that allows him to leave if his car is not franchised; Kessler indicated that Reddick and the sponsors have notified that 23XI is in breach. U.S. District Judge Kenneth Bell warned that NASCAR’s franchise system is at stake, depending on the outcome of the case. Arguments before Bell centered on the teams’ urgent request to restore their franchisee status by the end of the season, before a trial scheduled for December 1. NASCAR has indicated that it plans to begin selling the franchises immediately. Bell asked NASCAR’s lawyer why one of the four open spots couldn’t be sold and then address the situation once the case is resolved. NASCAR has maintained that it cannot be forced to do business with teams it doesn’t want to work with. The judge will announce their decision the week following the first playoff race of the season. Reddick and Bubba Wallace are in the playoffs for 23IX, and also Hamlin, who races for JGR. Outside of court, Jordan stated he was open to a settlement, but willing to take the case to trial. Kessler warned that if 23XI and Front Row don’t recover their franchises, they will go bankrupt in 2026.“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 Jordan and Denny Hamlin.
Michael Jordan
“I’ve been a fan of the sport for a long time,” Jordan said. “I’ve always said that I want to fight for the benefit of the sport. Although they tried to point out that we have made money, we have had a successful business. That’s not the point. The point is that the sport itself needs to change continuously, both for the fans and for the teams.”
Michael Jordan
