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How NBA legend michael jordan is blowing up nascar's monopoly

Matt Stoller reframes a high-stakes courtroom drama not as a celebrity feud, but as a pivotal test of whether a century-old sports monopoly can be dismantled by the very teams it exploits. The piece's most startling revelation is not the lawsuit itself, but the admission by NASCAR's own legal team that effectively concedes the sport's monopolistic status, turning a defense strategy into a self-inflicted wound.

The Anatomy of a Monopoly

Stoller immediately strips away the glamour of stock car racing to reveal the coercive mechanics underneath. He writes, "The France family and NASCAR are monopolistic bullies. And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims." This framing is effective because it shifts the narrative from a business dispute to a moral imperative, positioning the plaintiffs not as greedy owners, but as victims of systemic extraction.

How NBA legend michael jordan is blowing up nascar's monopoly

The author details how the sport's leadership maintains control through a stranglehold on infrastructure and supply chains. Stoller notes that teams are "required to shell out millions to purchase car parts dictated by NASCAR, but they do not retain ownership of these parts and are forbidden from using the cars containing these parts in any other racing event." This creates a classic lock-in effect where capital investment becomes a trap rather than an asset. The commentary here is sharp: it highlights how the monopoly doesn't just set rules; it owns the physical reality of the competition.

"Teams are now required to shell out millions to purchase car parts dictated by NASCAR, but they do not retain ownership of these parts and are forbidden from using the cars containing these parts in any other racing event."

Stoller draws a parallel to the Sherman Antitrust Act's historical application, referencing the O'Bannon v. NCAA case where lawyer Jeffrey Kessler successfully broke the college sports cartel. By bringing Kessler into the NASCAR suit, the plaintiffs are signaling that they intend to apply the same rigorous antitrust logic to the racing world. However, critics might note that sports leagues often receive unique judicial deference regarding their internal governance, a hurdle that could complicate this specific legal strategy despite the strong factual record.

The Human Cost of Dictatorship

The piece excels when it moves from legal theory to the visceral reality of the drivers and owners. Stoller cites internal communications that reveal a culture of contempt, quoting a text from NASCAR Commissioner Steve Phelps to a media officer regarding a legendary owner: "Childress needs to be taken out back and flogged. He's a stupid redneck who owes his entire fortune to NASCAR." This evidence is devastating because it exposes the arrogance that often accompanies unchecked market power.

The author argues that this bad behavior is a direct result of the lack of competition. "The bad behavior is downstream from the market power exhibited by NASCAR," Stoller writes, explaining that the monopoly allows the organization to underpay teams while capturing the bulk of the revenue. The result is a sport where even successful teams are "almost always on the verge of bankruptcy." This analysis connects the dots between corporate greed and the instability of the very ecosystem the corporation claims to protect.

Historical context is woven in seamlessly, reminding readers that this is not new behavior. Stoller points out that in the 1960s, founder Bill France Sr. banned union members, stating, "I'll use a pistol to enforce" the rule. "I have a pistol and know how to use it." By invoking this history, Stoller suggests that the current legal battle is merely the latest chapter in a long war between the France family's authoritarian control and the industry's need for fair play.

The Strategic Blunder

Perhaps the most compelling part of Stoller's coverage is the analysis of NASCAR's legal misstep. The author explains that NASCAR's lawyers, in an attempt to counter-sue the teams for forming a cartel, inadvertently admitted to the judge that NASCAR itself holds a monopoly. Stoller writes, "NASCAR made a strategic decision in asserting its Counterclaim and must now live with the consequences." The judge subsequently ruled that NASCAR is indeed a monopolist in the premier stock car racing market.

This section highlights the irony of the situation: in trying to paint the teams as the aggressors, NASCAR validated the core of the plaintiffs' argument. The commentary here is particularly astute, noting that while the outcome is still uncertain, the reputational damage is already done. The sport's decline in popularity is presented not as a market correction, but as a consequence of this extractive management style. Stoller observes that while NASCAR once dominated the top 20 sporting events by attendance, "Last year the Dayton 500 had an average audience of 6.7 million," a stark drop from the 15-19 million average seen in the early 2000s.

"If the terms were fair, (so many teams) wouldn't have gone out of business. Only one side is going out of business."

Bottom Line

Stoller's strongest argument is the demonstration that monopolies eventually consume their own ecosystem, turning potential partners into desperate adversaries. The piece's greatest vulnerability lies in the uncertainty of the final remedy; even if the plaintiffs win, the court may be hesitant to order a breakup of a complex sports league. However, the sheer volume of evidence regarding coercion and market control presented here makes a compelling case that the era of the France family's unchecked authority may finally be ending.

Deep Dives

Explore these related deep dives:

  • Sherman Antitrust Act

    The lawsuit centers on allegations that NASCAR violated the Sherman Act through monopolistic practices. Understanding this foundational 1890 antitrust law—its history, landmark cases, and how courts interpret monopolization—provides essential context for evaluating the legal claims in this trial.

  • Bill France Sr.

    The article mentions NASCAR was founded by Bill France Sr. in 1948 and the France family still controls it. Learning about the founder's vision, his controversial anti-union stance, and how he built NASCAR into a monopoly provides historical context for understanding the current power dynamics being challenged.

  • O'Bannon v. NCAA

    The article mentions Jeffrey Kessler 'breaking the NCAA cartel in 2020 over allowing college athletes to earn sponsorship money.' This landmark antitrust case against collegiate sports' economic model parallels the NASCAR lawsuit and shows how courts have ruled against sports organizations' anticompetitive practices.

Sources

How NBA legend michael jordan is blowing up nascar's monopoly

by Matt Stoller · · Read full article

“The France family and NASCAR are monopolistic bullies. And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. That moment has now arrived.” - complaint against NASCAR

On Monday in a Charlotte, North Carolina courthouse, the weirdest and most interesting monopolization trial of the year started. A driving team, 23XI Racing, is suing NASCAR over its control of the sport, alleging violations of the Sherman Act for acting as a monopolist in the premier stock car racing market. 23XI is owned by basketball legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin. Sitting on the other side is the billionaire France family, which owns NASCAR and speedways across the country.

It’s a real North Carolina scene, which is full of race tracks and racing fans. Jordan is a strategic weapon, sitting in the courtroom every day as the most famous and accomplished athlete in the history of the state. He is famously apolitical, but in this case, he said, “I’m willing to fight for a competitive market where everyone wins.” Several jurors were dismissed because of their love for Jordan, whereas another was kicked off the case because of her dislike for one of the driving teams involved. And then there was the guy who joked on his juror form that his hobby is “heavy drinking;” he was ultimately chosen to serve. The judge, Kenneth Bell, is a Trump appointee, and he moved the case lightning fast, bringing it to trial in a year.

The world of racing fans is glued to the trial, just as authors and agents couldn’t get enough of the merger challenge to Penguin/Simon & Schuster. And the reason is that antitrust trials are where everyone learns how their industry really works. There had always been rumors of dictatorial controlling behavior from NASCAR’s leadership, as well as attempts to quell dissent, everything from criticism of fees to attempts to unionize drivers. But now the evidence is coming out.

For instance, a few years ago Richard Childress, a legendary former driver and current owner who won six championships with Dale Earnhardt, made a comment about a new NASCAR TV deal. “Childress needs to be taken out back and flogged,” NASCAR Commissioner Steve Phelps texted Chief Media Officer Brian Herbst. “He’s a stupid redneck who owes his entire fortune to NASCAR.” Drivers and writers are in ...