Michael Jordan sues popular sport over anti-trust issues

Michael Jordan is commonly often known as the various foremost iconic and greatest basketball players in NBA history, having won six NBA championships, two Olympic gold medals, and five MVP titles and three All-Famous person MVPs.

The successful NBA player has a net worth of around $3.5 billion, making him the various wealthiest former athletes on earth.

Do not omit the move: Subscribe to TheStreet's free on on a regular basis basis newsletter

In 2023, selling his ownership stake within the NBA's Charlotte Hornets franchise, Jordan decided to invest in some of his biggest passions, including marketing, public relations, philanthropic activities, and, of course, sports.

Michael Jordan pursues his passion for sports by investing in motorsports

Like any retired athlete, Jordan may in all probability be very obsessive about sports, so he chose to encompass NASCAR in his greater than one investments.

The National Association for Stock Car Auto Racing, popularly often often known as NASCAR, is the various pinnacle motorsports organizations on earth and one of many vital foremost important spectator sports leagues within the U.S.

Related: Louis Vuitton parent makes major deal to elevate sagging sales

In 2020, Jordan co-founded the auto racing team 23XI alongside his business partner Bob Jenkins and race car driver Denny Hamlin in hopes of making a team that changed into as successful as he changed into in his basketball career.

Harsh actions are taken against NASCAR after a troublesome disagreement couldn't be resolved

When 23XI became a member of NASCAR, the team's co-founders signed an agreement with terms and stipulations that had been set in place since 2016.

Alternatively, over two years ago, NASCAR decided to update its agreements for the 2025 season, which 23XI refused to sign because it disagreed with the unfair terms and stipulations the team might be tied to.

The racing team Front Row Motorsports, which has been interested in NASCAR since 2005, also refused to sign the emblem new agreements end result of the the identical conflicts as 23XI.

Since an agreement couldn't be reached after over two years of trying, both teams concluded that filing a lawsuit shall be the most effective real technique to finish NASCAR's anti-competitive practices.

23XI and Front Row Motorsports file a lawsuit against NASCAR and its CEO

On Wednesday, Jordan's racing team, 23XI, and Front Row Motorsports announced they'd filed a joint lawsuit within the U.S. District Court in Charlotte, North Carolina, against NASCAR and its CEO, Jim France, for antitrust violations.

“We share a keenness for racing, the fun of competition, and winning. Off the racetrack, we share a belief that modify is necessary for the sport we adore. Together, we brought this antitrust case so that racing can thrive and became a more competitive and fair sport in ways with the intention to benefit teams, drivers, sponsors, and, most importantly, fans,” said 23XI Racing and Front Row Motorsports in a joint statement.

Jordan, his team, and the organization argue that NASCAR has been monopolizing auto racing sports for years, the usage of anti-competitive practices to forestall fair competition.

The plaintiffs claim that NASCAR is the most effective real major professional sport within the U.S. run by a single family that as well enriches itself by acquiring related and rival companies to get rid of any competition.

In accordance with the lawsuit, the Plaintiffs look after that the defendants:

• Bought a majority of the premier racetracks a superior technique to be exclusive to NASCAR races, imposing exclusivity deals on NASCAR-sanctioned racetracks.
• Acquired Automobile Racing Club of The u.s. (ARCA), the most effective real notable stock car racing series competitor.
• Prevented teams from taking part in any other stock car races.
• Retained ownership over Next Gen parts and cars, forcing teams to buy their parts from single-source suppliers NASCAR chose.

More Sports:

• Tiger Woods business venture hits a rough patch
• Chubbies leans on tight end to tackle NFL fans
• Kansas City Chiefs dominate NFL on the sphere, struggle to benefit off of it

Court cases tend to take your time to achieve a verdict, so while the case proceeds, 23XI and Front Row Motorsports will file a preliminary injunction that can well per chance allow them to race within the next calendar year.

The teams can also seek damages for the anti-competitive terms they have been subjected to since signing their last agreements.

“One and all knows that I've always been a fierce competitor, and with the intention to to win is what drives me and the overall 23XI team per week out on the track. I actually like the sport of racing and the passion of our fans, alternatively the way NASCAR is run as of late is unfair...” said co-owner Michael Jordan in a statement.

Related: Veteran fund manager sees world of pain coming for stocks