Federal Judge Urges NASCAR, Michael Jordan’s 23XI Racing to Settle Escalating Antitrust Dispute
A federal judge is pressing NASCAR and two of its teams including 23XI Racing, co-owned by NBA legend Michael Jordan and veteran driver Denny Hamlin to find common ground and settle their intensifying legal battle before it derails the upcoming season.
During a tense hearing on Tuesday, U.S. District Judge Kenneth Bell of the Western District of North Carolina sharply questioned both NASCAR and the representatives from 23XI Racing and Front Row Motorsports, the latter owned by longtime racing executive Bob Jenkins. The case stems from an antitrust lawsuit that has hovered over the sport for months, casting a shadow on both its business model and its competitive structure.
Judge Bell made it clear that he sees little benefit to a prolonged legal war, questioning both sides on what they realistically expected to achieve through litigation. “You all clearly have business interests in continuing to work together. Is there no middle ground?” Bell reportedly asked, urging the parties to explore mediation.
What’s at Stake?
At the heart of the dispute is NASCAR’s control over charter agreements, which are effectively licenses that guarantee race entries and a share of prize money. Teams argue that the current structure unfairly consolidates power with NASCAR, limiting their ability to grow financially or negotiate better terms. NASCAR, on the other hand, maintains that the structure is essential to keeping the sport viable and competitive.
Sources close to the matter say that 23XI and Front Row are seeking greater financial transparency, more equitable revenue sharing, and long-term stability issues that have become flashpoints in recent years as teams push back against NASCAR’s centralized governance.
High-Profile Owners, High-Stakes Drama
The involvement of high-profile figures like Michael Jordan, who entered the sport with significant fanfare in 2020, has only added to the pressure on NASCAR to modernize its economic model. With Hamlin a current Cup Series driver and Jordan combining business savvy and star power, 23XI has become a vocal advocate for structural change in the sport.
What Happens Next?
Judge Bell stopped short of ordering mediation, but strongly encouraged both sides to avoid a full-blown trial. “Litigation is expensive,” he warned. “And in this case, potentially damaging to the entire sport.”
As the 2025 NASCAR season approaches, all eyes will now be on whether the parties can reach a negotiated settlement or whether the sport is headed for a high-stakes legal showdown that could reshape its business for years to come.
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