Two top NASCAR teams including one backed by NBA superstar Michael Jordan are unhappy with the racing series’ current operations and have decided to sue both the series and CEO Jim France.
The teams 23XI Racing and Front Row Motorsports on Wednesday issued a joint statement announcing the lawsuit, in which they complained about “anti-competitive” and “monopolistic” control of the series.
At issue is NASCAR’s relatively unique position in the world of motorsports where the series is essentially a private business controlled by the descendants of series founder Bill France Sr., whose son is currently the CEO.
Unlike other series, such as F1, teams have little say on the operations and share only a small fraction of revenues from television rights. They also don’t have any ownership of the series, instead participating via charters, which operate similar to franchise rules and need to be extended.
Michael Jordan-backed 23XI Racing NASCAR team
While most teams agreed to an extension at the most recent signing agreement last month, Jordan-backed 23XI and Front Row Motorsports, whose issues with NASCAR’s management go back several years, held out.
In their statement, the teams said NASCAR and the France family operate without transparency, have stifled competition, and control the series in ways that unfairly benefit them at the expense of team owners, drivers, sponsors, and fans.
Specific issues mentioned include NASCAR owning a majority of racetracks that exclusively hold NASCAR races, acquiring notable rival series ARCA in 2018, forcing teams to buy parts from single-source suppliers chosen by NASCAR, and preventing teams from participating in other stock car racing series.
23XI Racing and Front Row Motorsports plan to file an injunction to enable them to compete next year without a charter, while continuing to pursue their litigation.
