Federal Judge Dismisses NASCAR Counterclaim in Legal Dispute
A federal judge ruled in favor of 23XI Racing and Front Row Motorsports, dismissing the counterclaim filed by NASCAR in a legal dispute over allegations of anti-competitive practices. Judge Kenneth Bell issued a summary judgment in favor of the teams, rejecting NASCAR’s claim that Curtis Polk, co-owner of 23XI, had illegally conspired with other teams during negotiations for new bylaws. 23XI, also owned by Michael Jordan and Denny Hamlin, had been the subject of a lawsuit by NASCAR, which argued that a 2023 boycott of a meeting of the team owners council negatively impacted media rights negotiations. Judge Bell determined that the boycott was a negotiation tactic “that seemed to have little impact”, as NASCAR initiated individual negotiations shortly thereafter. Bell also 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.Judge Bell will also have to rule on two other summary judgment motions: one filed by NASCAR 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 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 is guaranteed income and access to weekly races, and without them both teams claim they would almost certainly go bankrupt. “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 for a resolution that benefits everyone: teams, drivers, employees, partners, and fans.” 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 to resolve this matter quickly so that all parties can focus on Championship weekend and continue to grow the sport.” “In the event that a resolution is not reached, we intend to appeal the decision at the appropriate time.”“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 against the supposed ‘joint agreement’)”.
Judge Kenneth Bell
