The Legal Battle Between NASCAR and Racing Teams Intensifies
The tense legal dispute between NASCAR and two of its teams, who have filed a federal antitrust lawsuit, has escalated to a new level. During a hearing marked by controversy, emails and text messages with explicit language were revealed, originating from 23XI Racing team owner Michael Jordan, and others involved of high profile. In one of the exchanges, NBA legend Michael Jordan expressed his discontent with Joe Gibbs Racing and the other 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 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 franchise agreement extensions, similar to those in other sports. These teams sued NASCAR, accusing it of monopolistic practices. Both teams have warned that they could be forced to close if NASCAR sells its franchises. The hearing revealed explosive details, including internal communications from NASCAR with strong language. Jim France, current chairman of NASCAR, and Lesa France Kennedy, executive vice president, were present in court.In a partially written conversation, Jordan and Polk discussed the price of franchises. Jordan wrote: “I’m not selling, even if they were for sale.” Polk replied: “This is just a hobby!” Jordan answered: “I can only play golf for a while.” In another exchange, Jordan and Polk talked about the cost of hiring a pilot, whose name was omitted. Jordan responded: “I lost it in a casino. Let’s do it.” NASCAR also revealed internal communications with strong language. Commissioner Steve Phelps argued that an initial franchise proposal offered “no gain for the teams.” Steve O’Donnell, the president of NASCAR, criticized an initial version which, in his opinion, recalled the conditions of 1996. 23XI and Front Row’s lawyer, Jeffrey Kessler, argued that NASCAR’s exchanges and plans to avoid competition demonstrate a monopoly in the auto racing market. NASCAR maintains that 23XI and Front Row forfeited their rights to six combined charters by refusing to sign the extensions. The teams began the season as charters, which guarantees their entry into weekly competition. Teams with charters also receive a significantly larger percentage of the payments. The order that recognized the six cars as franchises has been revoked, and they currently compete as “open” teams. 23XI Racing driver Tyler Reddick has a clause in his contract that allows him to leave if his car is not a franchise; Kessler indicated that Reddick and the sponsors have notified that 23XI is in breach of contract. Judge Kenneth Bell warned that NASCAR’s franchise system is at stake. The discussion focused on the teams’ urgent request to restore their franchise status before the trial scheduled for December 1st. NASCAR plans to start selling the franchises immediately. Judge Bell asked why NASCAR doesn’t sell one of the four open spots and then address the situation after the case is resolved. NASCAR insists that it cannot be forced to do business with teams it doesn’t want. The judge will issue their ruling next week, after the first playoff race of the season. Reddick and Bubba Wallace of 23XI, along with Hamlin, who races for JGR, are in the playoffs. Outside of court, Jordan stated he was open to a deal, but willing to go to trial. Kessler warned that if 23XI and Front Row don’t recover their franchises, they could close in 2026.“Jim’s death is probably the answer,” wrote Steve Lauletta, president of 23XI, at one point.
Steve Lauletta
“I’ve always said that I want to fight for the good of the sport. The sport needs to continuously change for the fans and the teams,” Jordan declared.
Michael Jordan
