Breaking News:NASCAR asks federal judge to dismiss antitrust suit filed by 2 teams, one owned by Michael Jordan…..

Breaking News:NASCAR asks federal judge to dismiss antitrust suit filed by 2 teams, one owned by Michael Jordan…..

January 9, 2025 – NASCAR has moved to have a federal judge dismiss an antitrust lawsuit filed by two teams, including one co-owned by basketball legend Michael Jordan. The lawsuit, which was filed in 2024, accuses the motorsports governing body of engaging in anti-competitive practices that have harmed the plaintiffs’ businesses in the NASCAR Cup Series.

The teams involved, 23XI Racing—co-owned by Jordan and fellow NASCAR driver Denny Hamlin—and another unnamed team, allege that NASCAR has been using its market power to stifle competition and suppress opportunities for teams to operate effectively within the sport. The case has garnered significant attention, especially given Jordan’s high profile in the sports world, making it one of the most closely watched legal battles in NASCAR’s history.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses NASCAR and its parent company, International Speedway Corporation (ISC), of unfairly restricting competition through a variety of anticompetitive practices, including exclusive contracts with certain manufacturers and a limited entry system that makes it difficult for new teams to enter the series. The plaintiffs also contend that NASCAR has manipulated the distribution of race schedules and sponsorship opportunities to favor certain teams over others, creating an uneven playing field.

In response, NASCAR filed a motion late last week requesting that the judge dismiss the case, arguing that the claims made by the teams are baseless and lack the necessary legal standing. The racing organization contends that the structure of NASCAR, including its licensing and sponsorship agreements, is within the bounds of normal competitive practices and does not violate antitrust laws.

“NASCAR is confident that this case should be dismissed,” said NASCAR’s lead counsel in a statement. “The structure of our sport, from the distribution of race schedules to our team and manufacturer agreements, is designed to enhance competition, not hinder it. This lawsuit is nothing more than a misguided attempt to disrupt the integrity of the series.”

The legal battle centers on a critical issue: whether NASCAR’s operational model constitutes a violation of antitrust laws, which are designed to protect competition in business practices. The plaintiffs argue that NASCAR’s control over various aspects of the Cup Series—including the enforcement of exclusive supplier deals with car manufacturers, limiting access to certain race events, and controlling sponsorship rights—has created an uneven competitive environment that has disproportionately harmed smaller teams and new entrants like 23XI Racing.

The case is expected to have far-reaching implications, both for the future of NASCAR and the broader world of professional sports. If the lawsuit proceeds and results in a ruling against NASCAR, it could lead to significant changes in the way the sport operates, including changes to its team ownership structure, its sponsor agreements, and how it handles entry into races. On the other hand, if the judge dismisses the case, it could reinforce NASCAR’s position as the governing body with broad discretion over the sport’s structure.

For Michael Jordan, the suit represents his continued foray into the world of motorsports. The NBA legend has made headlines for his ownership of 23XI Racing, which debuted in 2021 with a partnership between Jordan and Hamlin. Despite initial skepticism, 23XI Racing has become a growing force in NASCAR, and Jordan’s involvement has brought new attention to the sport. However, Jordan and Hamlin now find themselves at the center of a legal dispute that could reshape the way NASCAR operates for years to come.

As the case moves forward, fans and industry experts alike will be watching closely, awaiting a decision that could significantly alter the competitive landscape of stock car racing in the U.S. The outcome may well influence the direction of other professional leagues and sports organizations that face similar questions about their business practices.