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. Judge Kenneth Bell’s decision represents a significant step forward in the case. The court ruling favors 23XI Racing, owned by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, along with Front Row Motorsports. The initial lawsuit centers on allegations of anti-competitive practices in the realm of racing. Judge Bell dismissed NASCAR’s claim that Curtis Polk, co-owner of 23XI and business manager for Michael Jordan, illegally colluded with other teams during negotiations for new bylaws. NASCAR argued that a 2023 boycott of the team owners council meeting negatively affected media rights negotiations and that the unification of the 15 organizations for charter talks resulted in a more favorable agreement for the teams. Judge Bell determined that the boycott was a negotiation tactic “that appeared to have little impact” and that NASCAR’s individual meetings with the teams resulted in changes to the charter agreement. The judge also ruled that 23XI and FRM did not engage in an “unreasonable restraint of trade”. The judge Bell must rule on two other summary judgment motions. One is from NASCAR, requesting a ruling in its favor, and the other is from 23XI and FRM, to designate the market as “premier stock-car racing.” Last week’s mediation failed to end the 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 statute extensions. Without these statutes, both teams claim they will almost certainly cease to operate.NASCAR indicated that it is still hoping to reach 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
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 Statement
