Why Is Michael Jordan Suing NASCAR And Its CEO?

This shouldn't come as a surprise, but Michael Jordan is one of the greatest basketball players to ever take the court. He won six titles with the Chicago Bulls, winning Finals MVP every time. He also made 14 All-Star appearances, won five MVP awards, and earned 10 All-NBA First Team nods. Perhaps most impressively, he joined the Looney Tunes to defeat the Monstars in Space Jam.

Jordan has been retired from the NBA for over two decades, though he's continued to grow his net worth through various business endeavors and sponsorships. While Jordan Brand is the most notable, he also founded the NASCAR team 23XI Racing in 2020 alongside his business partner Curtis Polk and driver Denny Hamlin.

Now, 23XI Racing and another team, Front Row Motorsports, are suing NASCAR and CEO Jim France. The lawsuit alleges that NASCAR hasn't been transparent and has anticompetitive rules in place. Jordan added in a statement that "the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans."

A major point of contention is that NASCAR has too much control over its teams. It purchases premier racetracks, reportedly makes teams buy their parts from specific suppliers, and doesn't let teams race in other stock car events.

In many other sports leagues, teams operate independently. Though there are certain rules, such as adhering to salary caps and being forthcoming about injuries, team owners and their staffs can run things as they see fit. The France family owns NASCAR, and that private ownership model puts teams at the beck and call of the league.

23XI Racing and Front Row Motorsports also believe the revenue-sharing model makes it challenging to earn a profit. NASCAR teams spend about $18 million per season to operate, and they haven't been earning it back. Front Row Motorsports has been in operation since 2005. Bob Jenkins, the team's owner, has never had a profitable season.

On the other side, NASCAR seems to be rolling in dough. It signed a new media deal with a $7.7 billion valuation, partnering with Fox, NBC, Amazon Prime, and Warner Bros. Discovery.

The two teams are seeking discovery from NASCAR and France, which means they're looking to gather and exchange evidence of wrongdoing. 23XI Racing and Front Row Motorsports are also seeking monetary damages for anticompetitive terms.

23XI Racing and driver Tyler Reddick won its first championship last month. We'll see if they score another victory here.