CHARLOTTE, N.C. — 23XI Racing and Front Row Motorsports earned a court victory on Tuesday in their ongoing litigation against NASCAR.
Will it be a step toward a settlement in the teams’ court case against NASCAR remains to be seen.
U.S. District Judge Kenneth Bell ruled that NASCAR controls the market when it comes to the NASCAR Cup Series.
23XI is owned by Michael Jordan and three-time Daytona 500 winner Denny Hamlin, while Bob Jenkins owns Front Row.
After choosing not to sign the new charter agreement with NASCAR that all other teams signed last year, the two teams filed an antitrust suit against the sanctioning body.
Judge Bell found that “NASCAR deliberate(ly), clear(ly) and unambiguous(ly)” alleged that the relevant market is “the market for entry of cars into NASCAR Cup Series races in the United States and any other location where a Cup Series race is held.”
In regard to the value of charters, Bell wrote: “The same transaction — the sale and purchase of premier stock car racing services — cannot be a different relevant market depending only on which side is complaining. Most simply put, NASCAR made a strategic decision in asserting its Counterclaim and must now live with the consequences.”
Both sides issued statements.
“We are very pleased with the Court’s decision today, ruling in our favor. Not only does it deny NASCAR’s motion for summary judgment, but it also grants our partial summary judgment motion, finding that NASCAR has monopoly power in a properly defined market,” said Jeffrey Kessler, the attorney representing 23XI and Front Row.
“This means that the trial can now be focused on whether NASCAR has maintained that power through anticompetitive acts and used that power to harm teams. We’re prepared to present our case to the jury and are focused on obtaining a verdict that benefits all of the teams, partners, drivers, and the fans.”
“NASCAR looks forward to proving that it became the leading motorsport in the United States through hard work, risk-taking, and many significant investments over the past 77 years,” NASCAR said in a statement. “The antitrust laws encourage this — and NASCAR has done nothing anticompetitive in building the sport from the ground up since 1948.
“While we respect the Court’s decision, we believe it is legally flawed and we will address it at trial and in the Fourth Circuit if necessary. NASCAR believes in the charter system and will continue to defend it from 23XI and Front Row’s efforts to claim that the charter system itself is anticompetitive.”
Negotiations have taken place to reach a settlement in recent weeks without resolution, but the trial date of Dec. 1 is approaching.
