Michael Jordan made an appearance in a federal courtroom in North Carolina while the lead attorney for his racing team kicked off a trial against NASCAR, arguing the organization is a monopolistic bully tightly controlled by a wealthy family that harms competition in the top tier of the sport though restrictive contracts.
“They are the only purchaser of racing team services,” Jeffrey Kessler, a partner with Winston & Strawn LLP who represents Jordan’s team and another team plaintiff, Front Row Motorsports Inc., told the jurors seated Monday in the US District Court for the Western District of North Carolina.
The evidence will show that the teams “are getting a deal that is much lower than they would be getting if there was competition,” he said.
NASCAR’s counsel fired back, arguing that the organization’s charter system for guaranteeing lucrative spots in the Cup Series maintains stability and enormous financial opportunity for teams such as Jordan’s 23XI Racing.
“I think Mr. Kessler left you with the impression that NASCAR just dropped an agreement on the teams and said ‘sign by midnight,’” said John E. Stephenson Jr., a partner with Alston & Bird LLP who represents NASCAR. “There were some 70 meetings. This thing was exhaustively negotiated.”
Both parties sparred for hours, kicking off a trial that’s expected to last at least two weeks.
Jordan sat in the Charlotte courtroom near driver Denny Hamlin, co-owner of 23XI, watching the attorneys present to nine jurors. Before opening statements, Judge Kenneth D. Bell broadly quizzed potential jurors, about their hobbies and whether they had strong feelings about NASCAR or were fans of Jordan and his basketball alma mater, UNC-Chapel Hill. One juror was dismissed for his self-professed admiration of Jordan.
The outcome of the trial could have profound implications on NASCAR, which is facing potential damages and injunctive relief that could reshape its charter system.
Jordan’s team and Front Row sued NASCAR in October 2024, claiming it forces teams to accept restrictive terms or give up participating in premier stock car racing. NASCAR is the sanctioning body for three national series for stock car racing in the US, including the Cup Series, the NASCAR Xfinity Series, and the lower tier Craftsman Truck Series.
The team plaintiffs refused to sign renewed charter agreements, alleging instead that NASCAR is the gatekeeper to the Cup Series and holds monopsony—single-buyer—power for the market for premier stock car racing teams, with control over prices and terms.
“What the evidence will show is that NASCAR, the whole kit and caboodle, is owned by the France family,” Kessler argued, referring to the family that has run the racing organization since 1948. “They make decisions and run it frankly for their benefit.”
Kessler also argued that NASCAR exercised its monopoly power by acquiring other racing circuits and racetracks that restrict their availability to competitors. “They tied up all the tracks you need,” he told the jurors.
During a break after opening statements, Jordan told Bloomberg Law he was “100%" confident that his team would win the trial after efforts to reach a settlement didn’t come through.
“I would have settled if I thought a settlement was worthwhile,” Jordan said.
NASCAR Defense
Stephenson defended members of the France family, arguing they began NASCAR 77 years ago with their own resources and hard work, ultimately investing billions of dollars in the sport.
“They built NASCAR from literally nothing,” Stephenson said. “They are an American success story.”
Further, the charter system was created by NASCAR at the request of teams and has generated more than $1.5 billion in equity value for teams since 2016. Charters can be bought and sold between teams and are each worth millions of dollars.
Jordan’s team in 2020 acquired a charter to compete in the Cup Series and bought a second charter in 2021 for $13.5 million from another race team that was exiting the series. Front Row Motorsports Inc., founded in 2004, owned its first charters in 2016.
“The establishment of the charter system changed the power dynamic,” Stephenson said.
NASCAR is also represented by Latham & Watkins LLP.
The case is 2311 Racing LLC v. NASCAR, W.D.N.C., No. 3:24-cv-00886, hearing 12/1/25.
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