NASCAR Loses Legal Battle: Antitrust Counterclaim Dismissed

Federal Judge Dismisses NASCAR’s Counterclaim Against Suing Teams

A federal judge made a groundbreaking decision on Tuesday, dismissing NASCAR’s counterclaim against the two teams that initiated a lawsuit over allegations of anti-competitive practices. The ruling, issued by U.S. District Judge Kenneth Bell, favors 23XI Racing and Front Row Motorsports. The ruling dismisses NASCAR’s accusation that pointed to alleged illegal collusion between Curtis Polk, co-owner of 23XI, and other teams during negotiations to obtain new statutes. 23XI, owned by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, has Polk as its long-time business manager. Polk was also part of a four-member negotiating team that collaborated with NASCAR for over two years on the charter agreement, signed by 13 of the 15 organizations last year.

In its counterclaim, NASCAR argued that the 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. However, Judge Bell considered that the boycott was a negotiation tactic “that seemed to have little impact,” as NASCAR initiated individual negotiations shortly thereafter.

The judge also determined that 23XI and FRM did not engage in an “unreasonable restraint of trade,” given that NASCAR’s individual meetings with the teams led to changes in the charter agreement and that the teams’ collaboration in the negotiations was reasonable, considering that all agreements would be similar.

“The evidence here establishes that not only were individual negotiations available, but NASCAR regularly conducted 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 against the supposed ‘joint agreement’)”.

Judge Kenneth Bell

Judge Bell must also rule on two other summary judgment motions: one filed by NASCAR in its favor and another by 23XI and FRM to designate the market as “premier stock-car racing.” Despite two days of mediation last week, the dispute was not resolved, and the trial is still scheduled for December 1 in North Carolina. 23XI and FRM are the only two organizations out of 15 that refused to sign extensions to the charters, which are fundamental to NASCAR’s business model. A car with a charter guarantees income and access to weekly races; without them, both teams claim they would surely go bankrupt.

“Today’s decision has only reaffirmed my clients’ unwavering pursuit of a fairer and more equitable sport,” stated 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

NASCAR, in its statement, expressed its hope of reaching an agreement. The season culminates with the championship final on Sunday 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 the championship weekend and continue to grow the sport. Should a resolution not be reached, we intend to appeal the decision in due course.”

NASCAR