NASCAR files counterclaim against 23XI, Front Row and Polk
Yesterday at 11:50 AM
NASCAR filed a counterclaim Wednesday against 23XI Racing, Front Row Motorsports and 23XI Racing co-owner Curtis Polk, alleging violations of the Sherman Act and conspiracy.
"Beginning no later than June 2022, Counterclaim Defendants engaged in a conspiracy and agreement in unreasonable restraint of interstate trade and commerce, constituting a violation of Section 1 of the Sherman Act," the claim states. "Curtis Polk knowingly and actively orchestrated and participated in this illegal conspiracy, while working as a member of the (Team Negotiating Committee) on behalf of the RTA and aiding 23XI's and Front Row's participation in the scheme, also continuing a violation of Section 1 of the Sherman Act."
In claiming conspiracy, NASCAR says 23XI and Front Row tried to get others to pressure NASCAR to accept the terms they wanted. Those efforts were done through the media, interfering with NASCAR's broadcast agreement negotiations, threatening to boycott events and engaging in a group boycott of a team owner council meeting.
Polk was named as a defendant as 23XI led negotiations on behalf of the Race Team Alliance. He led the race teams through the Team Negotiating Committee. The TNC was formed in 2022 when the initial negotiations between the teams and NASCAR on a new charter agreement began.
"Polk's individual role was at the very center of the plot to use collusive behavior to extract more favorable commercial terms from NASCAR in the Charter negotiations," NASCAR's claim states. "These strategies and threats included, but were not limited to, a group boycott and threatened group boycotts of NASCAR events, including televised qualifying races, negative media campaigns, meeting with at least one NASCAR media partner to affect ongoing NASCAR negotiations for a new media rights agreement, and threats/coercion to other team owners to 'not break ranks.'"
NASCAR cites that Polk and 23XI Racing's owners openly expressed wanting to change NASCAR's economic model by demanding more money for the teams from the next media rights agreement "instead of the teams competing against each other (their horizontal competitors) for sponsorship dollars."
23XI Racing and Front Row did not sign the charter agreement in September. Of the 15 teams, 13 others signed.
23XI Racing and Front Row Motorsports filed a joint antitrust lawsuit against NASCAR on Oct. 2. The lawsuit accuses NASCAR of unlawful monopolization.
"However, 23XI and FRM did not merely reject the terms of the 2025 Charters," the counterclaim states. “Rather, those teams embarked on a strategy to threaten, coerce, and extort NASCAR into meeting their demands for better contract and financial terms. Aided by counsel who has a history of suing various sports leagues and claiming that they engage in anticompetitive conduct, 23XI and FRM brought suit, alleging that the 2016 and 2025 Charters are illegal agreements, and that NASCAR is an illegal monopsonists."
NASCAR's lead attorney is Chris Yates. The race team’s lead counsel, of the above mentioned, is Jeffrey Kessler.
NASCAR wants a jury trial and is asking for a judgment to find that 23XI Racing, Front Row Motorsports and Polk violated Section 1 of the Sherman Act as well as an award of damages suffered by NASCAR. Additionally, NASCAR is seeking an order permanently enjoining (legally stopping) the teams, Polk, and those acting with them from violating Section 1 of the Sherman Act, including by prohibiting them from jointly negotiating with NASCAR.
NASCAR also wants an injunction granted for relief "as is necessary to restore competition, including elimination of Section 3.1(a) of the 2025 Charter Agreement which provides for guaranteed entry into Cup Series races" if 23XI Racing and Front Row continue to seek to have the agreement declared as unlawful under the antitrust laws or if they seek the elimination of Section 6.6 or other provisions that have been mutually agreed upon between NASCAR and approximately 99% of charter holders.
