Sean Gardner
·
gettyimages.comNASCAR Antitrust Lawsuit Battle
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mikeharb
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According to reports from ABC News, NASCAR is facing a federal antitrust lawsuit filed by two teams, including one co-owned by Michael Jordan, over the sport's new charter system and revenue-sharing model. The lawsuit, filed by 23XI Racing and Front Row Motorsports, claims that NASCAR's practices unfairly bind teams to the series, its tracks, and suppliers, limiting competition in the sport.
Revenue Sharing Disputes
NASCAR's revenue-sharing model has become a contentious issue between the organization and its teams. The current system allocates only 7% of total NASCAR revenue to teams, with sponsorship contributing 60-80% of a team's overall revenue
1
. This economic model has been criticized as "broken" and "not sustainable" by prominent figures in the sport, including Hendrick Motorsports vice chairman Jeff Gordon and 23XI Racing investor Curtis Polk1
.
Key points of dispute include:
- Teams seeking an increase from their current 25% cut of the broadcast contract1
- Demands for a larger share of overall revenue, a voice in governance, and a cut from NASCAR's earnings on participants' names, images, and likenesses2
- Requests for charters to become permanent, which NASCAR has refused2
- Teams' desire for a more equitable system that allows for long-term enterprise value, similar to other professional sports leagues2
3
4
.4 sources
Antitrust Implications for NASCAR
The antitrust lawsuit against NASCAR raises significant legal questions about the organization's market power and competitive practices. NASCAR's ownership of 44% of tracks and its close relationship with Speedway Motorsports Inc. (SMI), which owns another 37%, could be seen as potentially anticompetitive
1
. The teams argue that NASCAR's control over tracks, media rights, and revenue distribution unfairly limits their options and financial viability2
.
However, NASCAR may have some defenses against antitrust claims. The organization could argue that it faces competition from other racing series like IndyCar and Formula 1, and that teams are free to race elsewhere1
. Additionally, NASCAR's open entry system for some race spots and the existence of independent tracks could be used to counter monopoly allegations3
. The outcome of this case could have far-reaching implications for the structure and economics of professional stock car racing in the United States.3 sources
Michael Jordan's Racing Ambitions
Michael Jordan's venture into NASCAR through 23XI Racing demonstrates his commitment to expanding his competitive legacy beyond basketball. The team, co-owned by Jordan and veteran driver Denny Hamlin, fields multiple cars in the NASCAR Cup Series, including the iconic No. 23 Toyota driven by Bubba Wallace
1
2
. Jordan's involvement has brought a fresh perspective to the sport, leveraging his star power to attract new fans and sponsors while pushing for greater diversity and inclusion in motorsports2
.
- 23XI Racing operates multiple cars: No. 23 Toyota (Bubba Wallace), No. 45 Toyota (initially Kurt Busch), and a part-time No. 50/67 Toyota3
- The team aims to become a championship contender within five years of its 2020 founding4
- Jordan's increased presence in team meetings has positively impacted strategy and mindset1
- 23XI Racing focuses on innovation, cultural engagement, and creating opportunities for underrepresented groups in NASCAR42
4 sources
Related
How has Michael Jordan's involvement changed the team's performance
What specific strategies has Michael Jordan brought to 23XI Racing
How does Michael Jordan's experience in the NBA influence his approach to NASCAR
What are the key partnerships that Michael Jordan has helped secure for 23XI Racing
How does Denny Hamlin describe Michael Jordan's leadership style
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