Why Is Michael Jordan Suing NASCAR? NASCAR Teams Taking on "Monopolistic Bullies"

Michael Jordan's name is most frequently associated with basketball and the NBA, but he's an entrepreneur and philanthropist involved with many more businesses. And recently, an association with one major business has landed him in the headlines again.

Michael is suing famed racing brand NASCAR because he says they are "monopolistic bullies." The breakdown in relations between Michael and the racing titan has been occurring in slow motion over two years, but things finally came to a head. Here's what we know.

Michael's racing team, 23XI, has joined another team, Front Row Motorsports, in filing an anti-trust lawsuit against NASCAR. According to the lawsuit, NASCAR's revenue sharing system is "unfair." They claim that it prevents teams from using their maximum potential to earn a profit. Two years of attempts at negotiating more favorable terms have failed, leading to the lawsuit.

The lawsuit, aimed at NASCAR and the brand's CEO Jim France, calls those in charge of the company "monopolistic bullies." And claims that they have used "anticompetitive and exclusionary practices" in order to "enrich themselves at the expense of the premier stock car racing teams."

According to Jeffrey Kessler, the attorney representing both Front Row and Michael's 23XI, this is a moment that can transform the company for the better.

In a statement to People, Jeffrey explained, "Every major sport goes through a moment when it needs to be transformed — when the people who are being treated unfairly stand up and say it’s time for change. This is NASCAR’s moment, and that change is what we want from this case."

Since 2016, a revenue-sharing system is how NASCAR has provided income to its racing teams. But there's one problem with the entire system: There are no major competitors. This means that prices are set by NASCAR, vendors are chosen by NASCAR, and earnings potentials are limited by NASCAR.

Teams belonging to NASCAR sign a charter agreement, but the lawsuit claims that this system unfairly rewards successful teams while forcing others into a "take it or leave it" offer with no competition to offer alternatives. In 2018, NASCAR purchased its only major potential competitor.

Michael, of course, is no stranger to major brands. His collaboration with Nike is legendary, and he either owns or has interests in many major companies including DraftKings, tequila brand Cincoro, and many others. So for Michael to be putting his foot down and refusing to move forward with a company is a major sign that something isn't entirely copacetic.

In a statement shared with People, Michael explained, "Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans." He added, "Today’s action shows I’m willing to fight for a competitive market where everyone wins.”