Legal expert warns Michael Jordan-led antitrust battle with NASCAR could last years, with the trial just the start

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23XI team owner Michael Jordan at Homestead-Miami Speedway on Oct 27, 2024. Image: Imagn

A leading sports law expert has warned that the trial between Michael Jordan and Denny Hamlin's antitrust lawsuit against NASCAR, which is set to begin next week, is likely only the first chapter in a much longer fight.

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23XI Racing and Front Row Motorsports (FRM) filed the case last October after the two NASCAR Cup teams rejected the charter renewal proposal. The sides spent two days trying to resolve the matter out of court earlier this month, but the mediation efforts and settlement talks had failed. The trial will begin on the scheduled date, December 1.

Sportico reporter Michael McCann explained how the trial verdict would not end the dispute.

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"The trial also won't be the last word. Whichever side loses can, and almost certainly will, appeal to the U.S. Court of Appeals for the Fourth Circuit. The Fourth Circuit might not have the last word either, as the losing party could then petition the U.S. Supreme Court. It's not beyond the realm of possibility this sports antitrust dispute, like so many others in recent years, lasts several years," McCann wrote.
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Each side hired top sports litigators and spent heavily on legal work. The two NASCAR teams have already lost their chartered team status. After the teams filed their suit, a federal judge granted a temporary injunction that allowed Michael Jordan's 23XI and Bob Jenkin's FRM to race as chartered teams while the case unfolded.

However, earlier this year, an appeals court overturned that injunction. As a result, the teams lost their charter status and competed as "open" entries. This put further financial stress on the teams as they lost guaranteed racing spots and revenues.

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On the other hand, a long, drawn-out trial could also invite further issues for NASCAR. It might also face a new legal action from another team owner, Richard Childress, after screenshots of chats from a NASCAR executives group were revealed in recent court filings.

Michael Jordan and 23XI Racing ready to 'fight this to the end'

23XI and FRM challenged NASCAR's charter system and claimed that the sanctioning body holds monopoly power in "premier stock-car racing" by locking out competition and limiting fairness.

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Three months back, 23XI's Michael Jordan said that the fight was not about making money but about changing the sport for the better. The retired NBA Hall of Famer said, via Reuters:

"The point is that the sport itself needs to change, for the fans, teams as well as for NASCAR, too. ... If I have to fight this to the end, for the betterment of the sport, I will."
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Michael McCann added:

"This trial will happen unless a settlement is reached over the Thanksgiving holiday."

The ten-day jury trial is set for next Monday in Charlotte, North Carolina.

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Edited by Hitesh Nigam
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