Federal Judge Dismisses NASCAR’s Claim Against Suing Teams
A federal judge ruled in favor of 23XI Racing and Front Row Motorsports, dismissing NASCAR’s counterclaim in a legal dispute over allegations of anti-competitive practices. The decision was issued by U.S. District Judge Kenneth Bell. NASCAR’s claim argued that Curtis Polk, co-owner of 23XI, had illegally conspired with other teams during negotiations to obtain new charters. Polk, who is also Michael Jordan’s business manager, was part of a negotiating team that collaborated with NASCAR for more than two years for the charter agreement signed by several organizations last year. NASCAR maintained in its counterclaim that a 2023 boycott of the team owners council meeting negatively affected media rights negotiations and that the unification of the organizations for charter talks gave them a better deal than they would have obtained by negotiating individually. Judge Bell determined that the boycott was a negotiation tactic “that seemed to have little impact,” as NASCAR began individual negotiations shortly after. Additionally, Bell concluded that 23XI and FRM did not participate in an “unreasonable restraint of trade,” as NASCAR’s individual meetings with the teams resulted in changes to the charter agreement. It was also considered reasonable for the teams to work together in the negotiations, given that all charter agreements would be the same for all teams.Judge Bell must also rule on two other summary judgment motions: one from NASCAR seeking a resolution 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 trial is scheduled for 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 has 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 regularly had them 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’)”.
Judge Kenneth Bell
NASCAR 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. “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. If a resolution is not reached, we intend to appeal the decision in due course.”“Today’s decision has only reaffirmed my clients’ unwavering pursuit of a fairer and more equitable sport,” said Jeffrey Kessler, attorney for 23XI/FRM. “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
