Basketball legend Michael Jordan is taking NASCAR to task over its charter agreements, but issued a stark warning about the sport’s future long before the issue escalated to this stage. Cup Series teams were embroiled in months-long negotiations with NASCAR regarding the terms of its new charter agreement, set to run from 2025 to 2031.

However, after talks hit a standstill, NASCAR issued an ultimatum for teams to sign the current offer by a deadline set in September. Jordan’s 23XI Racing team, co-owned with driver Denny Hamlin, along with Front Row Motorsports, declined to sign and have since initiated legal action against the sport with an antitrust lawsuit.

The battle continues, with 23XI Racing recently securing a preliminary injunction allowing them to operate as charter teams while the broader lawsuit unfolds, although NASCAR is appealing this decision. The main contention lies with NASCAR’s charter system, first introduced in 2016, with its latest contracts running concurrently with its new $7.7 billion media rights deal over the next seven seasons.

Back in May, long before legal disputes were on the horizon, Jordan warned that NASCAR needs “permanent charters” or the “sport’s going to die”.

The NBA icon expressed his concerns about the sport’s economic model to the New York Times: “If you had permanent charters, then you could create a revenue stream, either with new investors or different types of sponsorships that would subsidize that type of variance between ownership and the league.

“That’s a big, big miss right there. If you don’t correct that, this sport’s going to die not because of the competition aspect, but because economically, it doesn’t make sense for any business people.”

In a bold move, Jordan filed a lawsuit against NASCAR earlier this year, stating at the time: “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 Today’s action shows I’m willing to fight for a competitive market where everyone wins.”

Jordan and Denny Hamlin co-own 23XI Racing

Jordan and Denny Hamlin co-own 23XI Racing ( 

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(Image: Getty))

The NBA legend was present in court during a hearing in November, around the time when 23XI Racing’s Tyler Reddick competed for the NASCAR Cup Series championship. Despite the legal battle, Jordan remained focused on the race, saying outside the courtroom: “No, I’ve been in situations of disparity. I think the race team is going to focus on what they have to do this weekend, which I expect them to do.

“I think Jeffrey (Kessler, antitrust lawyer) did an unbelievable job today, and I think I put all my cards on the table. I’m looking forward to winning a championship this weekend.”

Earlier, in September, 23XI Racing made a stand by refusing to sign the charter agreements offered by NASCAR, declaring, “23XI decided to not meet a NASCAR-imposed deadline last night to sign Charter agreements for its two cars for 2025-2031.

“23XI’s position, as stated in a letter to NASCAR, is that we did not have an opportunity to fairly bargain for a new Charter contract. We notified NASCAR what issues needed to be addressed, in writing, at the deadline.

“We are interested in engaging in constructive discussions with NASCAR to address these issues and move forward in a way that comes to a fair resolution while strengthening the sport we all love.”