Leaked Texts From 23XI Racing Spark New Questions in NASCAR’s Power Struggle

The NASCAR lawsuit appears to have taken an unexpected turn. NASCAR finds itself in the middle of a storm after 23XI Racing co-owners, Denny Hamlin and Michael Jordan, as well as the sanctioning body’s top leadership, saw their text messages getting leaked.

It felt less like an ongoing antitrust lawsuit, with boring corporate documents, and more like unfiltered drama, highlighting just how much distrust and frustration exist behind the scenes.

For a sport that takes pride in maintaining an image of ‘control’, situations such as these can be very damaging, especially when it comes to their image and business dealings.

The Fallout of the Leak

Before we get into the details, the leaked messages felt personal, not just because of what they said, but also in their tone.

It felt like there was genuine animosity between the two parties.

Denny Hamlin – “In short, I’m in for the fight with NASCAR. My despise for the France family runs deep, but whatever we do, please let’s not sabotage our own business over principle when it comes down to it.”

23XI president Steve Lauletta’s text to Denny Hamlin on June 6, 2024, “I wish I knew what to do and what is the best investment path. Being in for the long haul and Jim dying is probably the answer.”

And, Michael Jordan didn’t hold back either; he called Coach Gibbs and the team “F—ers!!!!” for deciding to sign the charter deal.

MJ – “I think people understand our fight. Good things will come from this. Teams are going to regret not supporting us. Pu–ies!!!!!!”

On NASCAR’s side, the executives were just as blunt, with Steve O’Donnell writing in one message, ‘Fuck the teams.’

While Steve said that the sanctioning body’s stance meant ‘zero wins’ for the teams, and risked setting the sport back to its ‘tiny southern roots, the tiny sport of 1996.

But these words spread like wildfire. And, social media contributed to the controversy by sharing quotes without the context; the damage was already done by the time the news became public. It proves just how big the divide is between the teams and NASCAR’s leadership, and the common perception was that both parties were having an all-out war.

The Business of Perception in NASCAR

NASCAR operates on sponsorship revenue, television rights, and its relationship with teams. And, for all these to work in a well-aligned manner, the public perception plays a big role. The big companies want to feel they’re backing a stable, professional sport. But leaked texts as these, showing key stakeholders questioning the entire system, shake that confidence.

Moments like these raise some big doubts, as the sport has seen television ratings dip and fans’ frustration at an all-time high. However, for Michael Jordan, this doesn’t come as a surprise, as the NBA has seen players’ private group chats becoming public, and Formula 1’s team radio often puts heated arguments under the spotlight.

But for NASCAR, instances such as these go beyond petty disagreements. They feed into the idea that the sanctioning body’s system. The question is whether that system is broken or the sport is evolving?

23XI and the modern NASCAR identity

The fallout became even bigger because these texts came from 23XI Racing. For those who don’t know, the team is looked at as one of the more forward-looking, progressive sides in the Cup Series, with a state-of-the-art facility called Airspeed. But the nature of text messages goes against the polished image they’ve built so far.

These messages felt personal, aggressive, and disruptive, and many critics felt that they crossed a line. But the real question is whether Jordan and Co. are being judged more harshly because they are not legacy owners in the sport? Or would Roger Penkse, Rick Hendrick, or Joe Gibbs face the same backlash in similar circumstances?

While this could be something we would never know, 23XI has never been afraid of challenging the status quo, perhaps to their own detriment. They’ve lost their charters, a huge financial blow for the team, and the text message leaks prove that their every move is being analyzed behind the scenes.

Despite how high-profile Michael Jordan is, and his presence in the sport helps in NASCAR’s goal of expanding the sport, perhaps the sanctioning body now feels that the disruption is too heavy a price to pay for the presence of an NBA Hall of Famer.

And, the timing has broader implications for the sport

The leaks are directly related to the ongoing antitrust lawsuit and the charter system. In June, 23XI and Front Row Motorsports went to a federal judge in Charlotte, North Carolina, hoping that the preliminary injunction would restore their charters and restart the payments according to the conditions set last year.

Even in the courtroom, Judge Kenneth D. Bell criticized both parties for making personal attacks, going on to say, “Everybody is going to get hurt if this thing goes a certain way.” He also reminded both sides that, “If either party feels certain they are going to win, they’re wrong.”

The stakes are high, and NASCAR feels that keeping the charters limited makes them more valuable, while 23XI and Front Row have argued that the system locks out competition and violates antitrust laws. And now, the leaked texts, filled with profanity and frustration, highlight just how personal the fight has become. It’s also an indication that nothing said in private is ever truly private, and the repercussions for this situation will be evident going forward.

While some say NASCAR needs to tighten its communication channels to prevent such situations, others feel the circumstances shouldn’t have become this personal to begin with.

Conclusion

The leaked texts have escalated the situation beyond the limit. The sanctioning body and 23XI Racing have to come to terms with the fact that transparency in the digital era is unavoidable, and what leaders say in private holds weight and changes the perception of the sport. Judge Bell’s warning that “everybody is going to get hurt” highlights that the damage to reputation could be irreparable, irrespective of the outcome in December.