Michael Jordan And Other Team Owners Reach Settlement With NASCAR In Federal Antitrust Lawsuit – AfroTech

Michael Jordan and other team owners have officially reached a settlement with NASCAR in a federal antitrust case.

Jordan made history in 2020 when he joined Daytona 500 winner Denny Hamlin to launch a NASCAR team with Bubba Wallace as the driver. He became the first Black owner of a full-time team in the league’s premier series since Hall of Famer Wendell Scott, according to a press release.

Jordan is no stranger to team ownership, having previously served as the majority owner of the Charlotte Hornets from 2010 to 2023, as AFROTECH™ previously reported. His interest in NASCAR was planted during his childhood in North Carolina.

“Growing up in North Carolina, my parents would take my brothers, sisters, and me to races, and I’ve been a NASCAR fan my whole life,” Jordan said in the news release. “The opportunity to own my own racing team in partnership with my friend, Denny Hamlin, and to have Bubba Wallace driving for us, is very exciting for me. Historically, NASCAR has struggled with diversity, and there have been few Black owners.”

Fast forward to 2025, and Jordan, who owns a 60% stake in the team, 23XI Racing, has invested $35 million-$40 million in it, according to CNN. The outlet reports that Jordan owns charters for three cars to race, including one purchased in 2024 for $28 million.

“I’m pretty sure they know I love to win,” Jordan said, per CNN. “Denny convinced me getting a third driver improved our chances to win, so I dove in.”

Jordan is now in court — following an antitrust lawsuit filed by 23XI Racing and Front Row Motorsports — seeking to change NASCAR’s business model. Currently, the company runs on a charter system where teams purchase a charter to guarantee a car’s spot in each race of the season and to earn a weekly payout, with the option to renew the charter every few years, reports The Los Angeles Times. However, the plaintiffs are requesting permanent charters and claim the current model, introduced in 2016, doesn’t fairly compensate the athletes. Front Row Sports owner Bob Jenkins claimed he lost about $100 million even after securing a victory in the 2021 Daytona 500, CNN reports.

In 2024, NASCAR issued a 100-page renewal contract on the charter system, which 23XI Racing and Front Row Motorsports claim violated the Sherman Antitrust Act, per AFROTECH™. 23XI Racing and Front Row Motorsports did not sign NASCAR’s agreement. It was revealed that many of the teams that did sign did so because they felt there was no other option. In the lawsuit, it was described as “a take-it-or-leave-it offer,” according to The Los Angeles Times.

“Someone had to step forward and challenge the entity,” Jordan told the jury on Dec. 5, per the outlet. “I sat in those meetings with longtime owners who were brow-beaten for so many years trying to make change. I was a new person, I wasn’t afraid. I felt I could challenge NASCAR as a whole. I felt as far as the sport, it needed to be looked at from a different view.”

NASCAR’s current revenue model requires its 36 charter teams to participate in all events. According to AFROTECH™, by competing, teams will receive payments; however, the amount depends on the team’s presence and performance in the event, as well as during the most recent three seasons, and on the season-ending points fund.

“One, I didn’t think it was economically viable. Two, it said you could not sue NASCAR, that was an antitrust violation, I felt. Three, they gave us an ultimatum I didn’t think was fair to 23XI,” Jordan said per The Los Angeles Times.

He added: “I wanted a partnership, and permanent charters wasn’t even a consideration. The pillars that the teams wanted, no one on the NASCAR side even negotiated or compromised. They were not even open-minded to welcome those conversations, so this is where we ended up.”

Jordan also cited the NBA’s business model, which shares half its revenue with players.

“The revenue split was far less than any business I’ve ever been a part of,” Johnson told CNN. “We didn’t think we’d ever get to what basketball was getting, but we wanted to move in that direction. The thing I see in NASCAR that I think is absent is a shared responsibility of growth as well as loss.”

NASCAR claims its business practices are not abnormal and that it increased payouts in 2025, making a case that it is not anticompetitive, the Los Angeles Times reports.

In the latest update from Dec. 11, a settlement between the parties has been reached, according to NBC News. A joint statement from NASCAR, 23XI Racing, and Front Row Motorsports states the settlement “delivers long-term stability and creates the conditions for meaningful growth for all teams in a more competitive environment.”

No further details were made available at the time.