NASCAR CEO Steve Phelps has weighed in on the ongoing legal dispute involving NBA legend and 23XI Racing co-owner Michael Jordan. The lawsuit, which has captured attention across both the sports and motorsports worlds, concerns allegations of a contractual disagreement involving sponsorship obligations for Jordan’s NASCAR team.
In a statement addressing the situation, Phelps emphasized the importance of upholding transparency and integrity within the NASCAR ecosystem. “We are aware of the legal matter involving Michael Jordan and 23XI Racing,” Phelps stated. “While it is not NASCAR’s role to intervene in private business disputes, we support all parties in seeking a fair resolution that aligns with the values of professionalism and respect that define our sport.”
The lawsuit reportedly stems from a dispute over sponsorship agreements related to 23XI Racing, the team Jordan co-founded with NASCAR driver Denny Hamlin in 2020. 23XI Racing fields cars for drivers Bubba Wallace and Tyler Reddick and has quickly become a competitive force in the NASCAR Cup Series. However, the legal wrangling threatens to disrupt the team’s preparations for the 2024 season.
A Message to Michael Jordan
Phelps used the opportunity to publicly commend Jordan’s contributions to NASCAR while encouraging a resolution to the matter. “Michael Jordan’s involvement in our sport has been transformative. His passion, leadership, and commitment to diversity have elevated NASCAR to new heights,” Phelps said. “I am confident that 23XI Racing will navigate this challenge and continue to thrive.”
Jordan’s entry into NASCAR marked a significant cultural moment, bringing heightened visibility and fresh perspectives to the sport. His team, 23XI Racing, has been instrumental in promoting diversity, equity, and inclusion in motorsports, particularly through its support of Bubba Wallace, the only full-time Black driver in the Cup Series.
Impact on 23XI Racing
As the legal proceedings unfold, the lawsuit’s potential impact on 23XI Racing remains uncertain. Analysts have speculated that the dispute could affect sponsorship negotiations and team operations, though representatives for 23XI Racing have maintained that the team remains focused on achieving success in the upcoming season.
Denny Hamlin, co-owner of 23XI Racing and a driver for Joe Gibbs Racing, has publicly voiced his support for Jordan. “We are committed to moving forward and continuing to build on what we’ve accomplished,” Hamlin said. “Michael’s vision and dedication to this team remain unwavering.”
Broader Implications for NASCAR
The lawsuit also underscores the complexities of balancing business interests within the fast-paced world of NASCAR. As the sport continues to grow and attract high-profile investors, disputes like this highlight the need for clear communication and well-defined contractual agreements.
Phelps reiterated NASCAR’s commitment to fostering a collaborative environment. “Our sport thrives when teams, sponsors, and stakeholders work together in harmony. We remain optimistic that this matter will be resolved amicably and that all parties involved can focus on what truly matters—competing at the highest level.”
As the 2024 NASCAR season approaches, all eyes will be on 23XI Racing to see how the team responds to the challenges at hand. With the backing of one of the most iconic figures in sports history, the team has proven its resilience before and will likely continue to be a pivotal player in NASCAR’s evolution.
