Federal Judge Dismisses NASCAR Counterclaim in Legal Dispute
A federal judge ruled in favor of two racing teams in a legal dispute with NASCAR. The decision dismisses the counterclaim filed by the racing series. U.S. District Judge Kenneth Bell issued a summary judgment in favor of 23XI Racing and Front Row Motorsports. This implies the dismissal of NASCAR’s lawsuit, which accused Curtis Polk, co-owner of 23XI, of illegal collusion with other teams during negotiations for new statutes. 23XI is owned, among others, by Michael Jordan, NBA Hall of Famer, and Denny Hamlin, three-time Daytona 500 winner. Polk, in turn, has been Jordan’s longtime business manager and 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 meeting of the team owners council negatively impacted its media rights negotiations and that the unification of the 15 organizations for the charter talks resulted in a better deal for the teams.Judge Bell also determined that 23XI and FRM did not participate in an “unreasonable restraint of trade,” as NASCAR’s individual meetings with the teams did result in some changes to the charter agreement. Furthermore, he considered it reasonable for the teams to work together in the negotiations, given that all charter agreements would be the same for all teams. “The evidence here establishes that not only were individual negotiations ‘available,’ but NASCAR had such negotiations regularly during the negotiation period,” Bell wrote in his order. “And, those individual negotiations achieved concrete results, including the final 2025 charter agreement that was signed by 13 teams acting individually (and contrary to the supposed ‘joint agreement’)”. Bell must also rule on two other summary judgment motions: one from NASCAR seeking a ruling in its favor and another from 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 date of 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 revenue and access to weekly races, and without them both teams claim they would almost certainly go bankrupt.The boycott was a negotiation tactic “that seemed to have little impact”, as NASCAR began individual negotiations shortly after.
Judge Kenneth Bell
NASCAR said in a statement that it still expects an agreement. The season concludes 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
“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. Our priority remains resolving this matter quickly so that all parties can focus on Championship weekend and continue to grow the sport.
NASCAR Statement
