Federal Judge Dismisses NASCAR Counterclaim Against Suing Teams
A federal judge ruled on Tuesday in favor of the 23XI Racing and Front Row Motorsports teams, dismissing the counterclaim filed by NASCAR in relation to the allegations of anti-competitive practices. United States District Judge Kenneth Bell issued a summary judgment in favor of 23XI Racing and Front Row Motorsports, rejecting NASCAR’s claim that Curtis Polk, co-owner of 23XI, had illegally conspired with other teams during negotiations for new bylaws. 23XI is owned, among others, by Michael Jordan, NBA Hall of Famer, and Denny Hamlin, three-time Daytona 500 winner. Polk, in turn, 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. NASCAR argued in its counterclaim that a 2023 boycott of the team owners council meeting negatively impacted its media rights negotiations, and that the unification of the 15 organizations for charter talks allowed the teams to obtain a better deal than they would have achieved if NASCAR had negotiated separately with them.Bell also determined that 23XI and FRM did not participate in an “unreasonable restraint of trade,” as NASCAR’s individual meetings with the teams did result in some changes to the charter agreement, and given that all charter agreements would be the same among all teams, the teams’ joint work in the negotiations would be reasonable.The boycott was a negotiation tactic “that seemed to have little impact” because NASCAR initiated individual negotiations shortly thereafter.
Judge Kenneth Bell
Bell must also rule on two other motions for summary judgment, 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 on December 1 in North Carolina. 23XI and FRM are the only two organizations out of 15 that refused to sign charter extensions, 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 surely go bankrupt.The evidence here establishes that not only were individual negotiations available, but NASCAR regularly had them during the negotiation period. And those individual negotiations achieved concrete results, including the final 2025 charter agreement that was signed by 13 teams acting individually.
Judge Kenneth Bell
NASCAR indicated in its statement that it still hopes 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 for a resolution that benefits everyone: teams, drivers, employees, partners, and fans.
Jeffrey Kessler, attorney for 23XI/FRM
“If a resolution is not reached, we intend 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
