How an Antitrust Lawsuit from Michael Jordan Reshaped NASCAR NASCAR, the governing body for premier stock car racing, found itself at the center of a high-profile antitrust lawsuit brought by NBA icon Michael Jordan. The case centered on whether NASCAR engaged in anticompetitive practices that harmed the teams competing in its events. The dispute revolved around a take-it-or-leave-it contract offer presented by NASCAR to its team owners as the 2024 season came to an end. The offer, with a deadline of midnight on September 6, 2024, required teams to agree to a provision that barred them from bringing antitrust claims against NASCAR. Thirteen teams accepted the offer, but two—23XI Racing, co-owned by Michael Jordan, and Front Row Motorsports—refused and filed a private antitrust lawsuit against NASCAR. The lawsuit alleged that NASCAR had gained control over race venues, equipment, and the teams themselves, effectively eliminating opportunities for teams to supply their services outside of NASCAR. NASCAR owned a significant number of the venues and had exclusive contracts with many others it did not own. Additionally, the organization required all teams to invest in cars that embodied “Next Gen” technology, which NASCAR controlled through patents and intellectual property. This created barriers for teams seeking to join a rival league, as the investment in specialized equipment and the associated learning curve made it costly to compete outside of NASCAR. William S. Beinecke, a professor of economics and management, testified in the case. He was contacted by Jeffrey Kessler, the lawyer representing Michael Jordan and the other plaintiffs.#michael_jordan #23xi_racing #nascar #william_s_beinecke #front_row_motorsports
How an Antitrust Lawsuit from Michael Jordan Reshaped NASCAR NASCAR, the governing body for premier stock car racing, found itself at the center of a high-profile antitrust lawsuit brought by NBA icon Michael Jordan. The case centered on whether NASCAR engaged in anticompetitive practices that harmed the teams competing in its races. The dispute arose as NASCAR presented team owners with a take-it-or-leave-it contract offer just before the end of the 2024 season. The deadline for signing was midnight on September 6, 2024, and failure to sign meant teams would be excluded from the 2025 season. In exchange for participation, teams had to agree to a provision that barred them from bringing antitrust claims against NASCAR. NASCAR owned a significant number of race venues and held exclusive contracts with many others it did not own. Additionally, the organization required all teams to invest in cars that incorporated “Next Gen” technology, which NASCAR controlled through patents and intellectual property. This created barriers for teams seeking to compete outside of NASCAR. Thirteen teams signed the contract, but two—23XI Racing, co-owned by Michael Jordan, and Front Row Motorsports—refused and filed a private antitrust lawsuit. They alleged that NASCAR had effectively eliminated opportunities for teams to operate independently by controlling venues, equipment, and team operations. The case brought in expert testimony from William S. Beinecke, a professor of economics and management, who was contacted by Jeffrey Kessler, the lawyer representing the plaintiffs. Kessler, known for his work in antitrust litigation, had previously been involved in cases that led to free agency in the NFL and greater autonomy for NCAA athletes.#michael_jordan #23xi_racing #nascar #front_row_motorsports #william_s_beinecke
