NASCAR Loses Legal Battle: Antitrust Counterclaim Dismissed

Federal Judge Dismisses NASCAR Counterclaim in Legal Dispute with Teams

A federal judge made a crucial decision on Tuesday, dismissing the counterclaim filed by NASCAR against two teams currently in litigation with the racing series over allegations of anti-competitive practices. United States District Judge Kenneth Bell issued a summary judgment in favor of 23XI Racing and Front Row Motorsports, invalidating NASCAR’s claim that Curtis Polk, co-owner of 23XI, had illegally conspired with other teams during negotiations to obtain new charters. 23XI is owned, among others, by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin. Polk, for his part, has been Jordan’s business manager for a long time. Polk was also part of a four-member negotiating team that collaborated with NASCAR for more than 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 had a negative impact on media rights negotiations and that, by the 15 organizations joining together for the charter talks, the teams obtained a better deal than they would have achieved if NASCAR had negotiated separately with them. Bell determined that the boycott was a negotiation tactic “that seemed to have little impact” because NASCAR began individual negotiations shortly thereafter. The judge also found that 23XI and FRM did not participate in an “unreasonable restraint of trade” because NASCAR’s individual meetings with the teams did result in some changes to the charter agreement, and since all charter agreements would be the same among all teams, that the teams working together in negotiations would be reasonable.

“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 contrary to the supposed ‘joint agreement’)”.

Kenneth Bell

Bell must also rule on two other summary judgment motions, one from NASCAR seeking a ruling 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 case is still scheduled for a trial date of 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 the core of NASCAR’s business model. A car with a charter is guaranteed income and access to weekly races, and without them, both teams say they would almost certainly go bankrupt. 23XI/FRM’s lawyer, Jeffrey Kessler, stated:

“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

NASCAR said in a statement 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. NASCAR declared:

“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. If a resolution is not reached, we intend to appeal the decision in due course.”

NASCAR