Federal Judge Dismisses NASCAR’s Claim Against Suing Teams
A federal judge ruled in favor of 23XI Racing and Front Row Motorsports, dismissing the counterclaim filed by NASCAR in the case of allegations of anti-competitive practices. The decision was issued by U.S. District Judge Kenneth Bell. The legal dispute centers on allegations of anti-competitive practices. Judge Bell ruled in favor of 23XI Racing and Front Row Motorsports, rejecting NASCAR’s claim that Curtis Polk, co-owner of 23XI, had illegally conspired with other teams during negotiations for new statutes. 23XI Racing, also owned by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, is at the center of this controversy. Polk, who has been Jordan’s business manager for a long time, was part of a four-member negotiating team that collaborated with NASCAR for more than two years on the charter 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 affected its media rights negotiations and that the unification of the 15 organizations for charter talks resulted in a better deal for the teams. Judge Bell determined that the boycott was a negotiation tactic “that seemed to have little impact,” as NASCAR began individual negotiations shortly thereafter. Bell also concluded that 23XI and FRM did not participate in an “unreasonable restraint of trade” because NASCAR’s individual meetings with the teams did result in some changes to the charter agreement. In addition, he considered it reasonable for the teams to work together in the negotiations, given that all charter agreements would be the same.Judge 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.” The two mediation sessions last week failed to resolve this dispute, and the case remains 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 charter extensions, which are fundamental to NASCAR’s business model. A car with a charter is guaranteed income and access to weekly races, and without them both teams claim they will almost certainly go bankrupt.The evidence here establishes that not only were individual negotiations available, but NASCAR had such negotiations regularly during the negotiation period
Judge Bell
NASCAR said in a statement that it is still awaiting 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.Today’s decision has only reaffirmed my clients’ unwavering pursuit of a fairer and more equitable sport. 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/FRM
In the event an agreement cannot be reached, NASCAR intends to appeal the decision at the appropriate time.We respect the Court’s decision, although we respectfully disagree with its legal reasoning. Our priority remains resolving this matter quickly so that all parties can focus on Championship weekend and continue to grow the sport.
NASCAR
