Federal Judge Dismisses NASCAR’s Counterclaim in Antitrust Case
A federal judge made a significant decision on Tuesday, dismissing NASCAR’s counterclaim against two teams that had filed a lawsuit 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, rejecting 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 Michael Jordan, NBA Hall of Famer, and Denny Hamlin, three-time Daytona 500 winner. Polk, in turn, has been Jordan’s longtime business manager. In addition, Polk was 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 meeting of the team owners council negatively impacted its media rights negotiations, and that by joining the 15 organizations for the charter talks, the teams obtained a better deal than they would have achieved if NASCAR had negotiated separately with them. Judge Bell determined that the boycott was a negotiation tactic “that seemed to have little impact” because NASCAR began individual negotiations shortly after. Bell also concluded 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, the fact that the teams worked together in the negotiations would be reasonable.Bell must also rule on two other summary judgment motions: one from NASCAR seeking a decision 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 out of 15 organizations that refused to sign extensions to the charters, which are the core of NASCAR’s business model. A chartered car has guaranteed income and access to weekly races, and without them both teams say they would almost certainly go bankrupt.“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’)”.
Judge Kenneth Bell
NASCAR said in its statement that it still hopes to reach an agreement. The season ends with Sunday’s championship 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,” said Jeffrey Kessler, attorney for 23XI/FRM, in a statement. “Their determination remains strong as we continue our efforts for a resolution that benefits everyone: teams, drivers, employees, partners, and fans.”
Jeffrey Kessler
“In the event that 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,” 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.
NASCAR
