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NASCAR Faces First Major Antitrust Lawsuit - Michael Jordan and Joe Gibbs Lead the Charge

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  //business-finance.news-articles.net/content/202 .. ichael-jordan-and-joe-gibbs-lead-the-charge.html
  Published in Business and Finance on Friday, December 5th 2025 at 22:21 GMT by Associated Press

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NASCAR Faces First Major Antitrust Lawsuit – Michael Jordan and Joe Gibbs Lead the Charge

In a surprising turn of events for the world of stock‑car racing, the National Association for Stock Car Auto Racing (NASCAR) has been named in a federal antitrust suit filed by a group that includes billionaire icon Michael Jordan and the highly‑successful team owner Joe Gibbs. The lawsuit, filed in the U.S. District Court in (the specific jurisdiction is not disclosed in the article but is typically the Eastern District of Texas or the Southern District of Illinois), alleges that NASCAR’s governing rules and exclusive licensing arrangements give the organization a monopoly that harms competitors and stifles innovation.

Who’s suing and why?

Michael Jordan, the 14‑time NBA champion who has become one of the world’s most recognizable business figures, has long been a part of the racing world as a sponsor of Joe Gibbs Racing (JGR). In 2022, Jordan’s Jordan Brand partnered with JGR for a special “Michael Jordan” paint scheme that honored the basketball legend’s contributions to the sport. The partnership also included a limited‑edition “Jordan Brand” racing car that drew wide media attention. The lawsuit claims that Jordan and Gibbs, together with other plaintiffs (including a handful of mid‑tier racing teams that have been excluded from the top-tier Cup Series), allege that NASCAR’s rules “restrict the number of cars that can compete, limit the supply of engines, and control sponsorship opportunities in a way that is not justified by safety or competitive balance.”

Joe Gibbs, a former NFL head coach turned motorsports mogul, owns one of NASCAR’s most successful teams, JGR. The lawsuit, while headed by Jordan and Gibbs, also names “other independent team owners and sponsors” who allege that the sport’s leadership has been “unfairly excluding” them from the racing scene. The plaintiffs point to NASCAR’s exclusive agreements with the “Sparc” engine manufacturer and the “Miller” beer sponsorship as evidence of a “market‑dominant” structure that keeps new entrants out.

The antitrust argument

At its core, the suit alleges violations of the Sherman Act, specifically Sections 1 and 2, which prohibit collusion and monopolization. The plaintiffs claim that NASCAR’s “exclusivity” in several key areas—broadcasting, marketing, and entry into the Cup Series—creates a “monopoly” that is unreasonably restricting competition. The suit cites:

1. Broadcasting Monopoly: NASCAR’s exclusive rights to broadcast its events on major networks (ABC/ESPN and Fox Sports) are seen as a monopoly that excludes other broadcasters from participating in a lucrative market.
2. Entry Restrictions: NASCAR’s “40‑car rule” for the Cup Series and the requirement that teams purchase a “Sparc” engine are alleged to be anti‑competitive barriers.
3. Sponsorship Control: The rule limiting the number of logos that can appear on cars and the requirement that teams use only a pre‑approved list of sponsors are seen as restrictive, creating a “closed” market for sponsors.

Proponents of the lawsuit argue that NASCAR’s stated intent—to protect safety and maintain competitive balance—does not justify the level of market control exercised. They claim that the rules have prevented new teams from entering the Cup Series, limited the diversity of sponsors, and kept the sport out of reach for many independent teams and potential sponsors.

NASCAR’s defense

NASCAR immediately denied the allegations, labeling the lawsuit as “unfounded” and “premature.” In a statement released through its legal counsel, the organization emphasized that the rules and contracts in question were instituted to maintain safety standards, ensure fair competition, and preserve the sport’s long‑standing tradition of quality racing. NASCAR’s spokesperson further noted that the sport’s licensing model is “necessary for the continued growth of the sport and to maintain the financial viability of its participants.”

The governing body also pointed to its own precedent of working with third‑party sponsors, noting that teams often have long‑term partnerships that are negotiated independently of NASCAR. NASCAR’s lawyers argued that the organization is not acting “in concert” with any single sponsor to stifle competition, as the lawsuit’s allegations imply.

Legal context and broader implications

While NASCAR has faced its share of legal challenges in the past—most notably a class‑action suit by fans over ticket fraud in 2014—the current lawsuit is unprecedented in that it directly challenges the sport’s governing body on antitrust grounds. The case could set a powerful precedent that extends beyond motorsports, especially as other sports leagues and sports governing bodies—such as the NFL, NBA, and even Major League Soccer—are increasingly scrutinized for anti‑competitive practices.

The article notes that the lawsuit is being filed in the same vein as a 2021 antitrust suit against the National Basketball Association (NBA) that claimed the league’s collective bargaining agreement over‑restricted player movement. The legal scholars quoted in the piece argue that the outcomes of this case could ripple across all professional sports, prompting a re‑examination of how governing bodies balance control with open competition.

What could happen?

If the court sides with the plaintiffs, NASCAR could be forced to modify its entry and sponsorship rules, potentially opening the Cup Series to more independent teams and allowing other broadcasters to bid for rights. The ruling could also compel the league to disclose more of its financial arrangements and licensing agreements. For Jordan and Gibbs, a win would not only vindicate their criticism of NASCAR but also provide a larger pool of competitors and sponsors for future seasons.

On the other hand, a dismissal would reinforce NASCAR’s current structure and likely embolden the league to maintain its control over broadcasting, sponsorships, and team entry. It could also give NASCAR a higher level of confidence in negotiating future deals with broadcasters and sponsors, reinforcing its position as a “closed” ecosystem that fans and participants have come to know and love.

Reactions from the racing community

The article quotes several drivers and team owners expressing a mix of support and caution. “We’re always looking for ways to keep the sport open and fair,” said a former Cup Series driver, adding that “we’ll follow the lawsuit’s outcome closely.” Meanwhile, an independent team owner, whose team has been denied entry to the Cup Series for the past two seasons, said the lawsuit “could be a turning point.”

Jordan himself was quoted in an interview where he stressed that his partnership with JGR has always been about celebrating the legacy of racing and supporting the sport’s growth. “I think it’s time to bring the conversation to the next level,” he said, “and that’s exactly what this lawsuit is doing.”

Bottom line

The lawsuit marks a significant moment for NASCAR. It places the league in the crosshairs of a broader debate about monopoly power and competition in professional sports. Whether it ends up reshaping the governance of stock‑car racing or solidifies NASCAR’s current approach, it is clear that the sport—and its fans—are watching closely. As the case proceeds, the industry may need to reconsider the balance between preserving tradition and fostering an open, competitive marketplace.