Federal Judge Dismisses NASCAR’s Counterclaim Against Suing Teams
A federal judge made a relevant decision on Tuesday by dismissing the counterclaim filed by NASCAR against two teams that sued it for allegations of anti-competitive practices. United States District Judge Kenneth Bell issued a summary judgment in favor of 23XI Racing and Front Row Motorsports, dismissing NASCAR’s claim that Curtis Polk, co-owner of 23XI, illegally conspired with other teams during negotiations to obtain new licenses. 23XI is owned, among others, by Michael Jordan, NBA Hall of Famer, and Denny Hamlin, three-time Daytona 500 winner. Polk, for his part, has been Jordan’s business manager for a long time. In addition, Polk was part of a four-member negotiating team that collaborated with NASCAR for more than two years on the licensing agreement signed by 13 of the 15 organizations last year. NASCAR argued in its counterclaim that a 2023 boycott of the team owners council meeting negatively impacted its media rights negotiations. It stated that, by the 15 organizations joining together for licensing negotiations, the teams obtained a better deal than they would have achieved if NASCAR had negotiated separately with each one. Judge Bell determined that the boycott was a negotiation tactic “that seemed to have little impact” because NASCAR began individual negotiations shortly after. Bell also found that 23XI and FRM did not engage in an “unreasonable restraint of trade,” as NASCAR’s individual meetings with the teams did result in some changes to the licensing agreement. Furthermore, since all licensing agreements would be the same for all teams, the fact that the teams worked together in the negotiations was considered reasonable.Bell must also rule on two other summary judgment motions: one filed by NASCAR seeking a ruling in its favor and another by 23XI and FRM to designate the market as “premier stock-car racing.” Two days of mediation last week failed to end this dispute and the case is still scheduled for a trial on December 1 in North Carolina. 23XI and FRM are the only two organizations out of 15 that refused to sign license extensions, which are fundamental to NASCAR’s business model. A licensed car has guaranteed revenue and access to weekly races, and without them, both teams claim they would almost certainly go bankrupt.“The evidence here establishes that not only were individual negotiations available, but NASCAR regularly had them during the negotiation period,” Bell wrote in his order. “And those individual negotiations achieved concrete results, including the final 2025 licensing agreement that was signed by 13 teams acting individually (and contrary to the supposed ‘joint agreement’)”.
Judge Kenneth Bell
“Today’s decision has only reaffirmed my clients’ unwavering pursuit of a fairer and more equitable sport,” said Jeffrey Kessler, attorney for 23XI/FRM, in a statement. “Their determination remains strong as we continue our efforts to achieve a resolution that benefits everyone: teams, drivers, employees, partners, and fans.”
Jeffrey Kessler, Attorney for 23XI/FRMNASCAR said in a statement that it is still hoping to reach an agreement. The season ends with Sunday’s championship final in Phoenix and Hamlin is one of the four drivers eligible for the Cup title.“If a resolution is not reached, we intend to appeal the decision at the appropriate time.”“We respect the Court’s decision, although we respectfully disagree with its legal reasoning,” NASCAR said. “Our priority remains resolving this matter quickly so that all parties can focus on Championship weekend and continue to grow the sport.
NASCAR
