Michael Jordan, the NBA legend and co-owner of 23XI Racing, has officially announced his departure from NASCAR. This decision comes in the wake of ongoing disputes over NASCAR’s business practices, particularly concerning the charter system and revenue-sharing models.
Background of 23XI Racing and Legal Disputes
In 2020, Jordan co-founded 23XI Racing alongside veteran driver Denny Hamlin, aiming to bring fresh perspectives and diversity to the sport. However, the team soon encountered challenges related to NASCAR’s charter system—a framework established in 2016 to provide teams with guaranteed entry into races and a share of revenue. Jordan and other team owners have criticized this system, alleging that it imposes restrictive terms and limits competition. In response, 23XI Racing, along with Front Row Motorsports, filed a federal antitrust lawsuit against NASCAR and its chairman, Jim France, accusing them of monopolistic practices and unfair revenue distribution .
Jordan’s Critique of NASCAR’s Business Model
Jordan has been vocal about his concerns regarding NASCAR’s financial structure. In an interview, he emphasized the need for permanent charters to ensure the sport’s long-term viability, stating that without such reforms, “this sport’s going to die not because of the competition aspect, but because economically it doesn’t make sense for any businesspeople” . He highlighted the disparity in revenue sharing, noting that teams receive only a fraction of the income compared to what NASCAR and racetracks earn.
The Departure Announcement
Citing the inability to reach a fair agreement and the ongoing legal battles, Jordan decided to withdraw from NASCAR. He expressed that the current business model does not align with his vision for a sustainable and equitable environment in the sport. This departure signifies a significant shift, given Jordan’s prominence and the attention his involvement brought to NASCAR.
Impact on 23XI Racing and NASCAR
Jordan’s exit raises questions about the future of 23XI Racing. While Hamlin remains at the helm, the team’s direction and stability may be affected by the loss of Jordan’s leadership and financial backing. For NASCAR, this development underscores the pressing need to address team owners’ concerns and reevaluate its operational structures to prevent further high-profile departures and ensure the sport’s longevity.
Michael Jordan, the NBA legend and co-owner of 23XI Racing, has officially announced his departure from NASCAR. This decision comes in the wake of ongoing disputes over NASCAR’s business practices, particularly concerning the charter system and revenue-sharing models.
Background of 23XI Racing and Legal Disputes
In 2020, Jordan co-founded 23XI Racing alongside veteran driver Denny Hamlin, aiming to bring fresh perspectives and diversity to the sport. However, the team soon encountered challenges related to NASCAR’s charter system—a framework established in 2016 to provide teams with guaranteed entry into races and a share of revenue. Jordan and other team owners have criticized this system, alleging that it imposes restrictive terms and limits competition. In response, 23XI Racing, along with Front Row Motorsports, filed a federal antitrust lawsuit against NASCAR and its chairman, Jim France, accusing them of monopolistic practices and unfair revenue distribution .
Jordan’s Critique of NASCAR’s Business Model
Jordan has been vocal about his concerns regarding NASCAR’s financial structure. In an interview, he emphasized the need for permanent charters to ensure the sport’s long-term viability, stating that without such reforms, “this sport’s going to die not because of the competition aspect, but because economically it doesn’t make sense for any businesspeople” . He highlighted the disparity in revenue sharing, noting that teams receive only a fraction of the income compared to what NASCAR and racetracks earn.
The Departure Announcement
Citing the inability to reach a fair agreement and the ongoing legal battles, Jordan decided to withdraw from NASCAR. He expressed that the current business model does not align with his vision for a sustainable and equitable environment in the sport. This departure signifies a significant shift, given Jordan’s prominence and the attention his involvement brought to NASCAR.
Impact on 23XI Racing and NASCAR
Jordan’s exit raises questions about the future of 23XI Racing. While Hamlin remains at the helm, the team’s direction and stability may be affected by the loss of Jordan’s leadership and financial backing. For NASCAR, this development underscores the pressing need to address team owners’ concerns and reevaluate its operational structures to prevent further high-profile departures and ensure the sport’s longevity.
Michael Jordan, the NBA legend and co-owner of 23XI Racing, has officially announced his departure from NASCAR. This decision comes in the wake of ongoing disputes over NASCAR’s business practices, particularly concerning the charter system and revenue-sharing models.
Background of 23XI Racing and Legal Disputes
In 2020, Jordan co-founded 23XI Racing alongside veteran driver Denny Hamlin, aiming to bring fresh perspectives and diversity to the sport. However, the team soon encountered challenges related to NASCAR’s charter system—a framework established in 2016 to provide teams with guaranteed entry into races and a share of revenue. Jordan and other team owners have criticized this system, alleging that it imposes restrictive terms and limits competition. In response, 23XI Racing, along with Front Row Motorsports, filed a federal antitrust lawsuit against NASCAR and its chairman, Jim France, accusing them of monopolistic practices and unfair revenue distribution .
Jordan’s Critique of NASCAR’s Business Model
Jordan has been vocal about his concerns regarding NASCAR’s financial structure. In an interview, he emphasized the need for permanent charters to ensure the sport’s long-term viability, stating that without such reforms, “this sport’s going to die not because of the competition aspect, but because economically it doesn’t make sense for any businesspeople” . He highlighted the disparity in revenue sharing, noting that teams receive only a fraction of the income compared to what NASCAR and racetracks earn.
The Departure Announcement
Citing the inability to reach a fair agreement and the ongoing legal battles, Jordan decided to withdraw from NASCAR. He expressed that the current business model does not align with his vision for a sustainable and equitable environment in the sport. This departure signifies a significant shift, given Jordan’s prominence and the attention his involvement brought to NASCAR.
Impact on 23XI Racing and NASCAR
Jordan’s exit raises questions about the future of 23XI Racing. While Hamlin remains at the helm, the team’s direction and stability may be affected by the loss of Jordan’s leadership and financial backing. For NASCAR, this development underscores the pressing need to address team owners’ concerns and reevaluate its operational structures to prevent further high-profile departures and ensure the sport’s longevity.
