CHARLOTTE, N.C. (AP) \u2014 The federal antitrust trial against NASCAR opened Monday with the star power of Michael Jordan on hand as a jury of nine was seated to hear allegations that the stock car series is a monopolistic bully that leaves its teams no option but to comply with rules and financing they don\u2019t agree with.<\/p>\n
The retired NBA Hall of Famer is the co-owner of the 23XI Racing team at the top Cup Series level. 23XI and Front Row Motorsports sued the series last year rather than sign extension agreements on new charters, which are franchise-type designations that serve as the framework for the revenue stream between NASCAR and the teams.<\/p>\n
The stakes are huge: The charters are at the heart of NASCAR\u2019s business model \u2014 they guarantee a car a spot in the field each race week as well as a percentage of the purse \u2014 and the disputes over how they work have dominated the series of late. A loss for the two teams could oust them from the series while a loss for NASCAR could mean a fundamental restructuring of how the series operates.<\/p>\n
Six men and three women were seated for a trial expected to last two weeks before U.S. District Judge Kenneth Bell, who asked for opening statements to be completed later Monday. Bell ruled that 23XI co-owner and star driver Denny Hamlin and Curtis Polk, the longtime business manager for Jordan and part of the team\u2019s ownership group, will be sequestered after opening statements before they testify.<\/p>\n
Jordan\u2019s presence in the courtroom gallery near Hamlin was a factor: Among those dismissed from serving on the jury was a man who said he can\u2019t be impartial because \u201cI like Mike\u201d and another who said he had Michael Jordan posters on his walls growing up. A juror said they were a North Carolina fan but noted the football team at Jordan\u2019s alma mater<\/a> is not \u201cdoing too well right now\u201d to which the retired star shook his head and laughed.<\/p>\n NASCAR executives in the courtroom included chairman Jim France and vice chair Lisa France Kennedy, two scions of the family that founded NASCAR in 1948 and still owns it.<\/p>\n 23XI and Front Row were the only two teams out of 15 to refuse to sign extensions on new charter agreements last fall. The teams wanted multiple concessions, and when they didn\u2019t get them, they went to court. The case has churned through hearings and arguments for more than a year despite calls from other NASCAR teams to settle. Bell even helped mediate a failed two-day summit in October. <\/p>\n A NASCAR victory could put 23XI, Front Row and their six combined cars out of business. Their charters \u2014 now being held by NASCAR \u2014 would likely be sold. The last charter went for $45 million, and NASCAR has indicated there is interest from potential buyers including private equity firms.<\/p>\n A win for the teams would lead to monetary damages and the potential demolition of NASCAR as it is run today. The judge has the power to unravel a monopoly, and nothing is off the table, from ordering a sale of NASCAR to the dismantling of the charter system.<\/p>\n The allegations<\/p>\n The charter system introduced in 2016 is NASCAR\u2019s version of the franchise model used by most professional sports leagues. Being chartered guarantees that car a spot in the 40-car field for all 38 races, as well as a defined payout from the weekly purse.<\/p>\n Even with the charters, the teams have argued that the revenue model is not viable. The teams wanted more favorable terms<\/a> for the charters, including having them made permanent (they are renewable and revocable), a larger percentage of revenues and a voice in governance.<\/p>\n 23XI and Front Row also argue NASCAR has a vice grip on all aspects of the racing series and allege a monopoly based on exclusivity clauses, ownership of most of the race tracks on the Cup Series schedule and its control of the rules and regulations.<\/p>\n NASCAR says it has not violated antitrust law because it has done nothing to restrain trade beyond normal business practices.<\/p>\n NASCAR has argued that payouts in the 2025 charter agreement increased and prove the series is not anticompetitive. NASCAR has also cited the option for cars to enter races as \u201copen teams\u201d and try to make the field in one of four nonchartered spots on qualifying speed. 23XI and Front Row raced this season as open teams, and while their combined six cars made every race, it cost the organizations millions in purse money.<\/p>\n The pretrial discovery process revealed NASCAR made more than $100 million in 2024.<\/p>\n Behind-the-scenes drama<\/p>\n The discovery phase<\/a> was brutal for both sides. The antitrust allegations<\/a> have exposed salacious personal communications, NASCAR\u2019s finances and a deep contempt between some of the top executives in the sport and its participants.<\/p>\n NASCAR Commissioner Steve Phelps was among leadership who in a discussion with other NASCAR executives called Hall of Fame team owner Richard Childress a \u201cdinosaur,\u201d an \u201cidiot\u201d and a \u201cstupid redneck.\u201d The discussion also included a reference that Childress \u201cowes his entire fortune to NASCAR\u201d and needed \u201cto be taken out back and flogged.\u201d<\/p>\n Another NASCAR executive alleged that fans of the sport can\u2019t read, and multiple series leaders admonished Hall of Fame driver Tony Stewart\u2019s summer short-track series, SRX, and threatened to have it the killed because NASCAR drivers were participating.<\/p>\n On the other side, the president of 23XI was found to have said France had to die in order to receive favorable charter terms, Hamlin admitted his dislike for the France family, one of Jordan\u2019s advisers said Hamlin wasn\u2019t a good businessman and Jordan joked that he loses more money in a casino than he pays one of his drivers.<\/p>\n Hamlin, a three-time Daytona 500 winner who less than a month ago had the Cup Series championship slip through his fingers<\/a>, warned this weekend that the gloves will be off during the trial.<\/p>\n \u201cOur fans have been brainwashed with (NASCAR\u2019s) talking points for decades,\u201d Hamlin wrote on social media. \u201cLies are over starting Monday morning. It\u2019s time for the truth. It\u2019s time for change.\u201d<\/p>\n ___<\/p>\n