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 accused Curtis Polk, co-owner of 23XI, of illegal collusion with other teams during negotiations for new bylaws. Polk, who is also Michael Jordan’s business manager, was part of a negotiating team that collaborated with NASCAR for more than two years on the bylaws agreement signed by several organizations last year. NASCAR argued that the 2023 boycott of the team owners council meeting negatively affected media rights negotiations and that the unification of the organizations for charter talks resulted in a more favorable agreement for the teams. However, Judge Bell considered the boycott a negotiation tactic “that appeared to have little impact.”The judge also determined 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. Furthermore, since all charter agreements would be the same for all teams, collaboration in the negotiations was considered reasonable. Judge Bell must also rule on two other summary judgment motions, one filed by NASCAR and the other by 23XI and FRM to designate the market as “premier stock-car racing.” After two days of failed mediation, 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 statute extensions, which are fundamental to NASCAR’s business model.The evidence here establishes that not only were individual negotiations ‘available’, but NASCAR had such negotiations regularly during the negotiation period.
Judge Kenneth Bell
A car with status guarantees income and access to weekly races, and without them, both teams claim they would probably go bankrupt.
NASCAR expressed its hope of reaching an agreement. The season concludes with the championship final on Sunday in Phoenix and Hamlin is one of the four drivers eligible for the Cup title. NASCAR stated that it respects the court’s decision, although it does not agree with its legal reasoning and that, if a resolution is not reached, it will appeal the decision in due course.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
