Michael Jordan’s 23XI Racing scored a major off-track victory against NASCAR on November 4, winning a key ruling in its antitrust lawsuit tied to the ongoing charter dispute. Following the partial summary judgment, the organization maintained that while it respects the Court’s decision, it believes the ruling is legally incorrect and plans to contest it at trial and, if necessary, in the Fourth Circuit Court of Appeals.
The organization reaffirmed its confidence in the charter system and vowed to continue defending it against claims from 23XI and Front Row Motorsports that the system is anticompetitive. Now, in light of the recent partial summary judgment, a leading antitrust expert has weighed in, suggesting that NASCAR may have bitten off more than it can chew this time.
What Does Michael Jordan’s 23XI Legal Victory Mean for NASCAR’s Future?
In the courtroom, momentum swung toward MJ’s 23XI and FRM as Judge Kenneth Bell granted their request to define the market as “premier stock-car racing,” effectively acknowledging NASCAR’s control over the sport’s highest tier, the Cup Series.
The ruling eliminates the stock car giant’s argument that teams have other racing options, refocusing the case on whether the sanctioning body used its dominance to shut out potential competitors.
Judge Bell’s Tuesday ruling has only raised the stakes ahead of the December 1 trial, but the NBA legend isn’t backing down: “If I have to fight this to the end for the betterment of the sport, I’d do that.”
In a bold bid to reshape NASCAR’s power structure, 23XI/FRM sued the sanctioning body and its Chairman Jim France, arguing that the sport’s current system limits teams’ revenue and influence. The lawsuit, filed on October 2, 2024, in federal court in Charlotte, contends that NASCAR’s business practices violate antitrust law.
MORE: Rick Hendrick and Roger Penske Fight Back As 23XI Lawsuit Threatens To Expose NASCAR’s Inner Secrets
Commenting on the teams’ pre-trial success, NYU Law professor Harry First explained to Bloomberg, “Unfortunately for (NASCAR), when you file a complaint in antitrust, normally you have to put in your complaint what the relevant market is. So they defined a market which was pretty much the same as the market that Michael Jordan defined.”
Settlement discussions have taken place over the past few weeks, though it’s still uncertain if they’ll result in a resolution ahead of the December trial. Among the names expected to appear on the witness list is Rick Hendrick, the organization’s 15-time Cup Series championship owner, who marked another title celebration after Kyle Larson’s title triumph.
With Judge Bell’s recent ruling denying NASCAR’s bid to dismiss the case, the fight now shifts to the courtroom. A jury will ultimately decide whether the sport’s most powerful organization crossed the line in using its dominance to hold onto control.