NASCAR Lawsuit News, Michael Jordan’s December 2025 Trial Could Change Racing Forever

The racing world is watching as NBA legend Michael Jordan prepares to face NASCAR in federal court. The trial begins December 1, 2025, and what happens next could fundamentally reshape how stock car racing operates in America.

This isn’t just another contract dispute. 23XI Racing and Front Row Motorsports filed an antitrust lawsuit in October 2024 after becoming the only two teams—out of 15 charter holders—to refuse signing NASCAR’s new charter agreement. They’re now alleging NASCAR operates an illegal monopoly that suppresses team earnings and restricts competition.

What Is the NASCAR Lawsuit Actually About?

Here’s what you need to know in plain English:

The Charter System Explained: Since 2016, NASCAR has operated with a “charter system”—think of it like a franchise in other pro sports. Charters guarantee teams entry into every race and provide revenue sharing based on negotiated terms. Without one, teams face massive financial losses and uncertain race participation.

The Core Dispute: After two years of negotiations, NASCAR issued a final “take it or leave it” charter offer with a September 2024 deadline. Teams felt pressured. Thirteen signed. Two didn’t.

Michael Jordan’s 23XI Racing (co-owned with driver Denny Hamlin and Curtis Polk) and Bob Jenkins’ Front Row Motorsports sued NASCAR, alleging the racing organization operates a monopoly through anticompetitive practices.

What Teams Are Fighting For:

• Permanent charters (NASCAR refused this demand)
• Higher revenue share from TV deals and sponsorships
• More control over governance and rule-making
• Share of NASCAR’s name, image, and likeness revenue
• Freedom to compete in other racing series

The Legal Claims: Why Teams Say NASCAR Is a Monopoly

The lawsuit alleges NASCAR maintains monopoly control by acquiring racetracks and dictating what racing can occur there, restricting teams from racing outside NASCAR, requiring expensive Next Gen cars that NASCAR effectively owns, purchasing competitor ARCA and moving events to NASCAR-owned tracks, and forcing teams to accept anticompetitive charter terms or lose their ability to compete.

Unlike other professional sports where multiple franchises form a league, NASCAR is owned by one family—the France family—giving them control over tracks, rules, revenue distribution, and competition.

Major Court Wins for Jordan’s Team Before Trial

The teams have scored significant pretrial victories:

Market Definition Ruling: Judge Kenneth Bell ruled NASCAR has monopsony power in “premier stock car racing,” meaning NASCAR is the only buyer for the services of top-level stock car racing teams. This was huge—NASCAR had argued teams could compete in IndyCar or F1 instead.

Counterclaim Dismissed: Judge Bell dismissed NASCAR’s countersuit accusing teams of illegal collusion, removing NASCAR’s claim that teams conspired to pressure better terms.

Financial Discovery: The court permitted full financial discovery of major team owners Rick Hendrick and Roger Penske, rejecting their requests for exemption.

The trial will now focus on whether NASCAR unlawfully used its market power through anticompetitive acts rather than whether NASCAR controls the market—a critical distinction that favors the teams.

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What’s Happening Right Now: November 2025 Updates

Michael Jordan Named Corporate Representative: 23XI Racing formally designated Michael Jordan as its corporate representative, ensuring he can remain in the courtroom for all witness testimony when the trial begins December 1.

NASCAR petitioned the court to exclude two of 23XI’s three owners from the courtroom under Federal Rules of Evidence Rule 615. By naming Jordan as the official representative, the team ensured the basketball icon—and North Carolina native—will be present throughout the trial.

Explosive Documents Unsealed: Text messages released in November 2025 revealed NASCAR executives’ frustrations with teams and competitive racing series, including internal messages about putting “a knife” into the competing SRX series.

NASCAR’s financial statements from 2015-2024 became public, showing the organization reported over $537 million in comprehensive net income in 2023 and $103 million in 2024.

Teams Racing Without Charters: After the 4th Circuit Court of Appeals overturned a preliminary injunction in June 2025, 23XI and Front Row have been competing as “open teams” since July. This means significantly reduced prize money and no guaranteed race entry if more than 40 cars attempt to qualify.

The teams claim they stand to miss out on $45 million combined in revenue by racing without charters.

December 2025 Trial: What to Expect

The trial is expected to last 10 days with jury selection opening proceedings. Roughly 30-35 potential jurors will be narrowed to six jurors and three alternates.

Star-Powered Legal Teams:

• Teams represented by Jeffrey Kessler (Winston & Strawn), who won the landmark NCAA v. Alston case 9-0 at the Supreme Court
• NASCAR represented by Christopher Yates (Latham & Watkins), who successfully defended U.S. Soccer against a $500 million lawsuit

Key Witnesses: The witness list includes representatives from multiple NASCAR teams, with as many as eight team personnel prepared to testify alongside major team owners.

Settlement Still Possible: NASCAR Commissioner Steve Phelps said the series is “trying our hardest” to settle the lawsuit. Multiple settlement conferences have failed, but negotiations could resume through the Thanksgiving holiday.

Judge Bell warned in June, “It’s hard to picture a winner if this goes to the mat—or to the flag—in this case”, suggesting both sides face significant risks.

What’s at Stake: How This Could Change NASCAR Forever

If Teams Win:

• Charter system could become permanent
• Teams may gain higher revenue shares (currently about 25% vs. 50%+ in other sports)
• NASCAR might be forced to sell tracks or restructure operations
• Teams could gain freedom to compete in other racing series
• Industry governance structure could shift toward team input

If NASCAR Wins:

• Charter system remains under NASCAR’s control
• Teams’ leverage diminishes significantly
• 23XI and Front Row could face shuttering operations after 2025 without charters
• Other teams may be discouraged from challenging NASCAR’s authority

Financial Impact: NASCAR claims the charter system has created over $1.5 billion in equity value for teams since 2016. A ruling against NASCAR could reshape billions in racing revenue distribution.

The Charter Agreement: Understanding NASCAR’s Business Model

Before 2016, if a team folded, it could only sell physical assets—often at discounted rates. The charter system gave teams tradable franchise value.

There are 36 Cup Series charters total. Charter holders receive:

• Guaranteed entry into every race
• Base revenue share from TV deals
• Transferable franchise value (charters have sold for $30-40 million)
• Voting rights in team governance matters

The charter agreement includes provisions requiring teams to release claims against NASCAR and restricting competition with rival series.

The current agreement runs through 2031, but one major sticking point was NASCAR’s refusal to make charters permanent, with Chairman Jim France especially opposed to permanence.

Why This Matters to NASCAR Fans and the Industry

For Fans: The outcome affects which teams compete, how competitive the racing is, and potentially which drivers participate. The Driver Advisory Council filed a legal brief emphasizing drivers’ interests in the case, particularly preserving the Driver Ambassador Program created in the charter agreement.

For Teams: Revenue distribution directly impacts team survival. Many smaller teams operate on razor-thin margins. More revenue could mean better cars, competitive parity, and team stability.

For the Sport: NASCAR’s control over team operations could take a hit, with potential for more team owner input on revenue distribution and competitive rights. This could set precedent for professional motorsport globally.

For Investors: Charter values and team equity hang in the balance. A loss for NASCAR could devalue franchises; a win for teams could increase charter prices.

Previous NASCAR Legal Battles: Historical Context

This isn’t NASCAR’s first antitrust rodeo. The France family has faced legal challenges before:

• Kentucky Speedway lawsuit (2000s): Track owner sued for race dates, settled
• Team owner disputes (various): Multiple contract disputes over decades
• Driver lawsuits: Various employment and competition disputes

But legal experts note this case could take two years or more, with appeals potentially reaching the U.S. Supreme Court. One analyst warned the dispute could “stretch on for years” through multiple levels of appeals.

FAQ: NASCAR Lawsuit Explained

Q: Why did Michael Jordan sue NASCAR?

Jordan stated his team fights for a competitive market where everyone wins, not just to benefit 23XI Racing but also smaller teams struggling in the current system. He framed it as fighting for fairness across the entire motorsport landscape.

Q: What is a NASCAR charter worth?

Charter values have ranged from $6-13 million in 2016 to $30-40 million today. 23XI and Front Row each purchased additional charters from Stewart-Haas Racing during the lawsuit.

Q: Can 23XI and Front Row continue racing?

Yes, but as “open teams” with major disadvantages. They receive significantly less prize money and aren’t guaranteed race entry if fields exceed 40 cars.

Q: When will we know the lawsuit outcome?

The trial begins December 1, 2025, and is expected to last 10 days. However, appeals could extend the process for years, potentially reaching the Supreme Court.

Q: How does NASCAR’s revenue sharing compare to other sports?

NASCAR teams reportedly receive about 25% of total revenue. By comparison, NFL teams get roughly 50%, NBA teams get about 50%, and MLB teams receive approximately 50%.

Q: Could NASCAR lose the case?

Judge Bell has already ruled that NASCAR has monopsony power in the relevant market, a significant win for the teams. But NASCAR argues its dominance stems from merit and sound business decisions, not anticompetitive behavior.

Q: What happens to drivers during this lawsuit?

Drivers continue competing, though teams face financial pressure. Tyler Reddick, 23XI’s 2024 regular-season champion, gave the team breach of contract notice due to the lawsuit.

Expert Analysis: What Legal Experts Are Saying

The case has attracted attention from antitrust scholars and sports law experts nationwide. The key question: Does NASCAR’s market dominance stem from illegal monopolistic practices or legitimate business success?

NASCAR argues it became an industry leader through merit and sound judgment, including smart decisions and business acumen, and should not be faulted for success.

Teams counter that NASCAR’s dominant control stems from exclusionary acts and restrictive agreements that stifle competition, not superior skill or business acumen.

Judge Bell found that NASCAR plainly exercises monopsony power, noting barriers for others to enter the market—including availability of large racing tracks and highly qualified teams—are obvious.

What Comes Next: Timeline and Key Dates

• December 1, 2025: Trial begins with jury selection
• December 10-12, 2025: Expected trial conclusion
• Early 2026: Jury verdict expected
• 2026-2027: Appeals likely to 4th Circuit Court of Appeals
• 2027-2028: Potential Supreme Court petition

Settlement remains possible at any stage, though multiple settlement conferences have already failed, with disagreements reportedly centering on damages and legal fees demanded by 23XI and Front Row.

Resources and Further Reading

For the latest developments:

• NASCAR Official Statements
• Court Documents – PACER (Case No. 3:24-cv-886)
• Sportico Legal Analysis
• FOX Sports NASCAR Coverage

Bottom Line: A Sport at a Crossroads

This lawsuit represents more than Michael Jordan versus NASCAR. It’s about whether America’s premier stock car racing series operates fairly or exploits monopolistic control.

The December trial will answer whether NASCAR’s charter system represents smart business or illegal monopoly. Whether teams deserve more revenue and control or should accept NASCAR’s terms. Whether one family should wield absolute power over an entire professional sport.

As Judge Bell noted, there may be no clear winner when this reaches “the flag,” and the costs—financial and reputational—continue mounting.

For Michael Jordan, this fight extends beyond championship trophies. It’s about fairness, competition, and the future of racing. As he put it: “I think everybody should have an opportunity to be successful in any business. My voice is saying that it hasn’t been happening”.

Whatever the outcome, NASCAR will look different on the other side of this legal battle. The only question is how different—and whether the sport emerges stronger or fractured.

Last Updated: November 26, 2025. This article will be updated as the trial progresses and new developments emerge.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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