Michael Jordan has filed a lawsuit against the automotive sports goliath NASCAR, claiming the popular racing company is engaging in “monopolistic practices.”
Jordan — widely considered the greatest player in NBA history — filed a federal antitrust suit against the National Association of Stock Car Auto Racing, a.k.a NASCAR, and its chairman, billionaire Jim France Jr., on Oct. 2. According to CNBC. Jordan and his team are claiming the new charter system obliterates competition by unfairly tying teams to the series, its tracks and its suppliers, greatly inhibiting its prospects for profitability
Jordan lists reasons for suing NASCAR
“Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans,” the legal documents state, according to the media outlet.
“The France family and NASCAR are monopolistic bullies,” The Associated Press also said the suit states. “And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. That moment has now arrived.”
As most sports fans know, Jordan founded the NASCAR team, 23XI, with Denny Hamlin and Jordan’s business partner, Curtis Polk. Front Row Motorsports — which has been racing since at least 2005 and is owned by Bob Jenkins — joined the lawsuit.
The two teams decry NASCAR allegedly monopolizing everything from buying the premier racetracks that are exclusive to its races to allegedly forcing teams to buy their parts from suppliers specifically chosen by NASCAR. Teams are also prohibited from participating in any other stock car races.
Jordan and his business and legal teams assert that NASCAR has operated in a way that benefits the stock car racing behemoth — which is owned by a single family — at the expense of every other entity, which includes the teams, drivers, fans, partners and sponsors. Jordan said his team is struggling to make a profit despite investors pumping in millions to the team.
Meanwhile, Jenkins says his Front Row Motorsports has not turned a profile despite operating for over 20 years.
“We need a more competitive and fair system where teams, drivers and sponsors can be rewarded for our collective investment by building long-term enterprise value — just like every other successful professional sports league,” Jenkins said, according to CNBC.
NASCAR is unique because the sport is family-owned
Moreover, NASCAR is a privately owned company, which is a stark contrast to the four major American sports leagues — NFL, NBA, MLB and NHL — in which the owners own their own teams. Bill France Sr. founded NASCAR in 1947, and the sport has been a family-owned enterprise since its inception. The billionaire family also controls the International Speedway Corporation and the International Motor Sports Association, according to ESPN.
“No other major professional sport in North America is run by a single family that enriches themselves through these kinds of unchecked monopolistic practices,” the legal documents assert, according to the AP.
