KANSAS CITY, Kan. (AP) — Denny Hamlin said Saturday that he remains “pretty confident” in the case brought by his 23XI Racing, co-owned by the veteran driver and retired NBA great Michael Jordan, and Front Row Motorsports against NASCAR alleging antitrust violations.
Hamlin spoke one day after a three-judge federal appellate panel indicated it might overturn an injunction that allows 23XI and Front Row to race as chartered teams, even as their lawsuit against the stock car series plays out in court.
“You know, they’re telling me kind of what’s going on. I didn’t get to hear it live or anything like that,” Hamlin said after qualifying 14th for Sunday’s race at Kansas Speedway. “But we’re overall pretty confident in our case.”
The teams filed the antitrust lawsuit against NASCAR on Oct. 2 in the Western District of North Carolina, arguing that the series bullied teams into signing charter agreements — essentially franchise deals — that make it difficult to compete financially.
Those were the only two holdouts of 15 charter-holding teams that refused to sign the agreements in September.
The most recent extension of the charters lasts until 2031, matching the current media rights deal. Perhaps the biggest benefit of them is that they guarantee 36 of the 40 spots available in each NASCAR race to teams that own them.
Overturning the injunction would leave 23XI and Front Row racing as “open teams,” meaning they would have to qualify at every Cup Series event. But there are only four open spots, and 23XI had four cars at Kansas this week and Front Row had one.
“You know, the judges haven’t made any kind of ruling,” Hamlin said, “so until they do, then we’re going to stay status quo.”
NASCAR attorney Chris Yates had argued the injunction, granted in December by U.S. District Judge Kenneth Bell, forced the series into an unwanted relationship with unwilling partners, and that it harms other teams because they earn less money. He also said that the teams should not have the benefits of the charter system they are suing to overturn.
“There’s no other place to compete,” countered Jeffrey Kessler, the attorney representing 23XI and Front Row, noting overturning the injunction would cause tremendous damage to the teams, potentially including the loss of drivers and sponsors.
“It will cause havoc to overturn this injunction in the middle of the season,” Kessler said.
There is a trial date set for December, and judge Steven Agee urged the sides to meet for mediation — previously ordered by a lower court — to attempt to resolve the dispute over the injunction. But that seems unlikely.
“We’re not going to rewrite the charter,” Yates told the judges.
Associated Press writer Mike Barber in Richmond, Virginia, contributed to this report.
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(via @zackystrong.pt/TT)