Michael Jordan challenges NASCAR's charter system in court

In October 2024, Michael Jordan and his 23XI Racing team, alongside Bob Jenkins' Front Row Motorsports, filed a lawsuit against NASCAR in a federal court, claiming that recent alterations to the sport's charter system are unfair to teams. The charter system, introduced in 2016, guaranteed teams a start in every race, and a slice of television revenue, thus raising its resale value into the tens of millions. However, the France family, who control the NASCAR organization, have made reforms causing a shift in this structured system, increasing parity within the sport while still maintaining control over most media revenues. The filing of the lawsuit stems from the teams' refusal to agree to NASCAR's new charter deal aimed at altering the distribution of revenue. As part of the ongoing dispute, Jordan's team initially secured an injunction that allowed them to continue racing as charter teams. However, this injunction was overturned in June 2025 by the 4th Circuit court, indicating that their legal arguments weren't robust enough to support their claims against NASCAR, underscoring the legal hurdles that team owners face within the closed structure of the racing league. The legal battle highlights the tension in the current motorsports environment, where traditional power structures are being challenged by newer team owners. The France family, who have managed NASCAR for decades, are seen as guardians of the sport, maintaining its foundational aspects while simultaneously evolving it to foster competitive balance. Jordan, juxtaposing himself as an underdog, utilizes his status as a global icon in this fight against an entrenched league that some believe is operating as a monopoly amidst claims of unfair practices. While NASCAR has established a revenue-sharing model meant to foster growth, the recent legal actions suggest dissent regarding the equity of that distribution. If the current legal conflicts remain unresolved through court judgments, it could catalyze a significant shift in how NASCAR operates and, potentially, how it views competition within the ranks of team ownership, as Jordan’s presence in the court possibly reflects broader dissatisfaction among smaller teams. NASCAR faces a critical juncture as it must balance traditional governance with the emerging desires for fairness and accessibility in the sport.