Tag: antitrust lawsuit

A high-profile antitrust lawsuit filed by NASCAR teams 23XI Racing and Front Row Motorsports against the stock-car racing giant has brought explosive details to light, including expletive-laden text messages from team owner Michael Jordan and other key figures. The exchanges reveal a deep rift and heated exchanges over the sport’s charter agreements, which function similarly to franchises in other major sports.

Jordan’s Disparaging Texts Surface

Michael Jordan, the NBA Hall of Famer and co-owner of 23XI Racing, reportedly used disparaging language about Joe Gibbs Racing and the 13 other teams that signed NASCAR’s new charter agreements in September. In one text message to his business manager, Curtis Polk, Jordan wrote, “Teams are going to regret not joining us.” This message, along with others, was disclosed during an acrimonious court hearing on Thursday.

The two teams, 23XI Racing and Front Row Motorsports, are the only ones that refused to sign extension agreements on the charters. They accuse NASCAR of monopolistic practices and bullying, stating they risk financial ruin if NASCAR sells their charters. The details revealed in discovery documents have added significant heat to the year-long dispute.

Internal NASCAR Exchanges and Team Frustration

The disclosed documents also included heated exchanges among NASCAR executives. Steve Phelps, the commissioner, expressed frustration over unproductive talks, noting that early charter proposals offered “zero wins for the teams.” Steve O’Donnell, NASCAR’s president, also voiced dissatisfaction with earlier versions of the agreement, writing that charters “must reflect a middle position or we are dead in the water.”

Team owner Bob Jenkins and co-owner Denny Hamlin of 23XI Racing also had their texts revealed. Hamlin expressed deep animosity towards the France family, NASCAR’s owners, writing, “my despise for the France family runs deep… (but) please let’s not sabotage our own business.” Jordan’s texts also touched on financial aspects, including discussions about charter prices and driver costs, with one exchange showing him agreeing to a costly driver signing, stating, “I have lost that in a casino. Lets do it.”

The Charter System at Stake

Jeffrey Kessler, the attorney representing 23XI and Front Row, argued that these internal exchanges and NASCAR’s contingency plans demonstrate monopolistic behavior. NASCAR maintains that the teams forfeited their charter rights by refusing to sign extensions. While the six cars initially competed as chartered teams, that status has since been overturned, and they are now considered “open” teams. This situation puts 23XI Racing driver Tyler Reddick’s contract, which includes a clause allowing him to leave if his car isn’t chartered, in jeopardy.

U.S. District Judge Kenneth Bell acknowledged the significance of the charter system being on the line and is expected to rule on the teams’ request to restore their chartered status before a trial scheduled for December 1. Jordan stated he is open to a settlement but prepared for a trial, warning that without their charters, 23XI and Front Row could go out of business by 2026. He emphasized his commitment to fighting for the “betterment of the sport.”