Thu Dec 04 12:10:00 UTC 2025: NASCAR Faces Antitrust Challenge as Trial Opens with Emotional Testimony

CHARLOTTE, N.C. (AP) — A high-stakes antitrust trial that could dramatically reshape NASCAR began Monday in Charlotte, with Denny Hamlin, co-owner of 23XI Racing alongside Michael Jordan, delivering tearful testimony as the lead witness. 23XI Racing and Front Row Motorsports are suing NASCAR, alleging the racing series operates as a monopolistic entity that unfairly burdens teams with unfavorable rules and financial structures.

Hamlin, visibly emotional while describing his entry into racing, testified that he partnered with Jordan in 2021 after finding an opportunity to purchase a team, sharing that he needed a partner as the team was struggling. He stated that Jordan’s involvement had enabled 23XI to remain profitable for all but one of its seasons.

According to Jeffrey Kessler, the attorney representing 23XI and Front Row, a NASCAR-commissioned study showed that 75% of teams lost money in 2024. Kessler also pointed to a 2023 Goldman Sachs evaluation that valued NASCAR at $5 billion, while alleging that the France Family Trust has received almost $400 million over a three-year period.

The core of the lawsuit revolves around NASCAR’s revenue-sharing model, which the plaintiffs contend is detrimental to teams frequently operating at a loss. Hamlin claimed it costs $20 million per car to compete in a full 38-race season, excluding additional expenses like driver salaries.

NASCAR defends its charter system, which guarantees teams annual revenue. NASCAR attorneys argue that the system has generated $1.5 billion in equity for the 36 chartered teams.

The outcome of the trial carries significant weight. A NASCAR victory could potentially force 23XI and Front Row out of business, while a win for the teams could lead to substantial changes in NASCAR’s operations.

The trial, expected to last several days, features prominent figures from both sides, including NASCAR chairman Jim France, Michael Jordan, and other high-ranking executives. The presence of Jordan sparked a flurry of activity during jury selection, with several potential jurors admitting they couldn’t be impartial due to their admiration for the basketball legend.

Hamlin is scheduled to resume his testimony on Tuesday.

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