Judge pushes NASCAR, teams to settle antitrust dispute

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A federal judge urged NASCAR and two of its teams, including one owned by retired NBA great Michael Jordan, to settle their increasingly acrimonious legal fight that spilled over into tense arguments during a hearing on June 17.

U.S. District Judge Kenneth Bell of the Western District of North Carolina grilled both NASCAR and the teams — 23XI Racing, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by entrepreneur Bob Jenkins — on what they hoped to accomplish in the antitrust battle that has loomed over the stock car series for months.

23XI and Front Row were the only two organizations that refused to sign a take-it-or-leave-it offer from NASCAR last September on a new charter agreement.

Charters are NASCAR’s version of a franchise model, with each charter guaranteeing entry to the lucrative Cup Series races and a stable revenue stream; 13 other teams signed the agreements last fall, with some contending they had little choice.

The hearing was on the teams’ request to toss out NASCAR’s countersuit, which accuses Jordan business manager Curtis Polk of “willfully” violating antitrust laws by orchestrating anticompetitive collective conduct in negotiations. NASCAR said it learned in discovery that Polk in messages among the 15 teams tried to form a “cartel” type operation that would include threats of boycotting races and a refusal to individually negotiate.

Jeffrey Kessler, an attorney representing the teams, was angered by the revelation in open court, contending it is privileged information only revealed in discovery. Kessler also argued none of NASCAR’s claims in the countersuit prove anything illegal was done by Polk or the Race Team Alliance during the charter negotiation process.

NASCAR attorneys said Polk improperly tried to pressure all 15 teams that comprise the RTA to stand together collectively in negotiations and encouraged boycotting qualifying races for the 2024 Daytona 500. NASCAR, they said, took the threat seriously because the teams had previously boycotted a scheduled meeting with series executives.

Preliminary injunction status

Kessler said he would file an appeal by the end of the week after a three-judge federal appellate panel dismissed a preliminary injunction that required NASCAR to recognize 23XI and Front Row as chartered teams while the court fight is being resolved.

Kessler wants the issue heard by the full appellate court. The injunction has no bearing on the merits of the case, which is scheduled to go to trial in December. The earliest NASCAR can treat the teams as unchartered is one week after the deadline to appeal, provided there is no pending appeal or whenever the appeals process has been exhausted.

If 23XI and Front Row are not recognized as chartered, their six cars would have to compete as “open” teams — which means they’d have to qualify on speed each week to make the race and they would receive a fraction of the money guaranteed for chartered teams.