- Mediation between NASCAR, 23XI Racing, and Front Row Motorsports collapsed after two days, setting up a December 1 trial.
- Michael Jordan and Denny Hamlin’s team accuse NASCAR of monopolistic and retaliatory practices.
- Jordan laughed during testimony as NASCAR lawyers claimed teams could freely switch to IndyCar or F1.
The antitrust battle between NASCAR and two of its teams escalated Thursday after mediation failed for the third time, sending the case toward a December 1 trial that could reshape the business model of stock car racing.
U.S. District Judge Kenneth Bell oversaw Thursday’s hearing in Charlotte, North Carolina, following two days of mediation that included Bell and Jeffrey Mishkin, a former NBA executive and chief legal officer. Bell thanked both sides “for working in good faith,” but the gulf between them remains wide. NASCAR has asked the court to dismiss the case and to limit the scope of damages sought by the teams.
The lawsuit was filed last year by 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and by Bob Jenkins’ Front Row Motorsports. The two teams are the only ones out of 15 not to sign new charter extensions, arguing that NASCAR’s current system is anti-competitive and designed to suppress independent teams.
“Today’s hearing confirmed the facts of NASCAR’s monopolistic practices and showed NASCAR for who they are, retaliatory bullies who would rather focus on personal attacks and distract from the facts,” attorney Jeffrey Kessler said after the session. “My clients have never been more united and committed to ensuring a fair and competitive sport for all teams, partners, drivers and fans. We’re going to trial to hold NASCAR accountable.”
Charters are central to the dispute. They guarantee teams entry into races and a share of revenue, forming the foundation of modern NASCAR operations. Without them, both 23XI and FRM have said they would almost certainly go out of business. NASCAR maintains that the current model has added “more than $1 billion in equity” for teams since the charter system began in 2016.
The league has accused 23XI and FRM of engaging in “classic cartel behavior” by attempting to manipulate other teams and gain leverage during negotiations, a claim that failed to gain much traction in court Thursday.
NASCAR’s legal team argued that teams are free to compete in other motorsport series, including IndyCar and Formula 1. But Kessler dismissed the claim, comparing it to suggesting that a Major League Baseball team could simply switch to the minor leagues.
“Experts found that the (IndyCar) prize money and TV ratings were too low to make them a minor league team,” Kessler said. “Michael Jordan, if you put a gun to his head and said you have to join IndyCar, it better be a pretty big gun.”
Kessler also challenged NASCAR’s portrayal of Chip Ganassi Racing’s 2021 sale of its NASCAR operations to Trackhouse Racing. NASCAR attorney Christopher Yates, who repeatedly mispronounced Ganassi’s name during the hearing, claimed the sale allowed Ganassi to expand his IndyCar team. Kessler noted that Ganassi has already operated three to four cars in IndyCar for decades and is among the sport’s top teams.
Michael Jordan reportedly laughed and shook his head several times during the proceedings, including when NASCAR lawyers asserted that NASCAR distributes a higher percentage of its revenue to teams than Formula 1. Denny Hamlin and Bob Jenkins also appeared visibly frustrated by NASCAR’s claims. Jordan did not speak with reporters after the hearing.
The original charters, issued in 2016, were extended automatically through the end of 2024. NASCAR argues that these agreements already gave teams long-term stability and significant asset value, but owners have pressed for greater revenue sharing and protections.
Earlier this year, 23XI and FRM won a preliminary injunction allowing them to be recognized as chartered teams during the ongoing legal dispute. However, that decision was later overturned, and their six combined cars have been competing as “open” entries this season.
Kessler urged the court to allow damages to be calculated from 2021, citing 28 exclusionary provisions in NASCAR’s charter agreements that prevent teams from participating in other forms of stock car racing. NASCAR conceded that at least one exclusionary term was included in the 2021 contract.
Judge Bell postponed testimony from expert witnesses until November, scheduling additional hearings for two weeks after Hamlin competes for the NASCAR Cup Series title in Phoenix.
The case will now proceed to trial on December 1, marking one of the most significant legal showdowns in NASCAR’s modern history.
