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12/01 11:21 CST NASCAR antitrust trial opens with Michael Jordan on hand and
huge stakes
NASCAR antitrust trial opens with Michael Jordan on hand and huge stakes
By JENNA FRYER
AP Auto Racing Writer
CHARLOTTE, N.C. (AP) --- 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't agree with.
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.
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.
Jordan's presence in the courtroom gallery near fellow co-owner and NASCAR star
driver Denny Hamlin was a factor: Among those dismissed from serving on the
jury was a man who said he can't be impartial because "I like Mike" and another
who said he had Michael Jordan posters on his walls growing up. A third
dismissed juror pointed and winked at Jordan as he left the courtroom while a
juror said they were a North Carolina fan but noted the football team at
Jordan's alma mater "aren't doing too well right now" to which the retired star
shook his head and laughed.
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.
The stakes are huge: The charters are at the heart of NASCAR's business model
--- they guarantee a car a spot in the field each race week as well as a
percentage of the purse --- and the disputes over how they work have dominated
the series of late.
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't 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.
A NASCAR victory would likely put 23XI, Front Row and their six combined cars
out of business. Their charters --- now being held by NASCAR --- 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.
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.
The allegations All 15 teams had been fighting for more favorable terms in the charter agreements over more than two years of negotiations, and the final terms fell short of what they wanted. The antitrust allegations have exposed salacious personal communications, NASCAR's finances and a deep contempt between some of the top executives in the sport and its participants. Hamlin, a three-time Daytona 500 winner who less than a month ago had the Cup Series championship slip through his fingers, warned this weekend that the gloves will be off during the trial. "Our fans have been brainwashed with (NASCAR's) talking points for decades," Hamlin wrote on social media. "Lies are over starting Monday morning. It's time for the truth. It's time for change." NASCAR Commissioner Steve Phelps has said that the series has tried hard to settle the case.
What is a charter? The charter system was introduced in 2016 and is NASCAR's version of the franchise model used by most other 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. Even with the charters, the teams have argued that the revenue model is not viable. The teams wanted the charters to become permanent (they are renewable and revocable), a larger percentage of revenues and a voice in governance. 23XI and Front Row also argue NASCAR holds too strong of a hold 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.
NASCAR's defense NASCAR says it has not violated antitrust law because it has done nothing to restrain trade beyond normal business practices. 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 "open teams" and try to make the field in one of four nonchartered spots on qualifying speed. 23XI and Front Row have been open teams, and while their combined six cars made every race, it cost both organizations millions of dollars in purse money. The pretrial discovery process revealed NASCAR made more than $100 million in 2024.
Behind-the-scenes drama The discovery phase has been brutal for both sides with the exposure of unseemly personal communications. Phelps was among leadership who in a discussion with other NASCAR executives called Hall of Fame team owner Richard Childress a "dinosaur," an "idiot" and a "stupid redneck." The discussion also included a reference that Childress "owes his entire fortune to NASCAR" and needed "to be taken out back and flogged." Another NASCAR executive alleged that fans of the sport can't read, and multiple series leaders admonished Hall of Fame driver Tony Stewart's summer short-track series, SRX, and threatened to have it the killed because NASCAR drivers were participating. 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's advisers said Hamlin wasn't a good businessman and Jordan joked that he loses more money in a casino than he pays one of his drivers. ___ AP auto racing: https://apnews.com/hub/auto-racing
The allegations All 15 teams had been fighting for more favorable terms in the charter agreements over more than two years of negotiations, and the final terms fell short of what they wanted. The antitrust allegations have exposed salacious personal communications, NASCAR's finances and a deep contempt between some of the top executives in the sport and its participants. Hamlin, a three-time Daytona 500 winner who less than a month ago had the Cup Series championship slip through his fingers, warned this weekend that the gloves will be off during the trial. "Our fans have been brainwashed with (NASCAR's) talking points for decades," Hamlin wrote on social media. "Lies are over starting Monday morning. It's time for the truth. It's time for change." NASCAR Commissioner Steve Phelps has said that the series has tried hard to settle the case.
What is a charter? The charter system was introduced in 2016 and is NASCAR's version of the franchise model used by most other 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. Even with the charters, the teams have argued that the revenue model is not viable. The teams wanted the charters to become permanent (they are renewable and revocable), a larger percentage of revenues and a voice in governance. 23XI and Front Row also argue NASCAR holds too strong of a hold 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.
NASCAR's defense NASCAR says it has not violated antitrust law because it has done nothing to restrain trade beyond normal business practices. 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 "open teams" and try to make the field in one of four nonchartered spots on qualifying speed. 23XI and Front Row have been open teams, and while their combined six cars made every race, it cost both organizations millions of dollars in purse money. The pretrial discovery process revealed NASCAR made more than $100 million in 2024.
Behind-the-scenes drama The discovery phase has been brutal for both sides with the exposure of unseemly personal communications. Phelps was among leadership who in a discussion with other NASCAR executives called Hall of Fame team owner Richard Childress a "dinosaur," an "idiot" and a "stupid redneck." The discussion also included a reference that Childress "owes his entire fortune to NASCAR" and needed "to be taken out back and flogged." Another NASCAR executive alleged that fans of the sport can't read, and multiple series leaders admonished Hall of Fame driver Tony Stewart's summer short-track series, SRX, and threatened to have it the killed because NASCAR drivers were participating. 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's advisers said Hamlin wasn't a good businessman and Jordan joked that he loses more money in a casino than he pays one of his drivers. ___ AP auto racing: https://apnews.com/hub/auto-racing
