NASCAR opens new lawsuit against teams
Yesterday at 05:23 PM
NASCAR notes that 23XI Racing and Front Row Motorsports are trying to “blow-up the Charter system”
After years of negotiations, NASCAR handed teams a charter agreement with a deadline. That agreement will be in place from 2025-2031.
13 of the 15 teams signed. 23XI Racing and Front Row Motorsports elected not to sign the new charter agreement, purposefully missing the deadline ahead of the 2024 championship race.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
Charters are NASCAR’s version of franchises. Charter teams earn a significant increase in revenue over teams without a charter. All 36 charter teams are also guaranteed to start in every race.
After missing the signing deadline, NASCAR intended to claim those charters from the teams. However, 23XI and FRM asked the court for an injunction, allowing them to race, as if they did sign the agreement while their lawsuit is ongoing. The judge agreed and both teams kept their charters for the 2025 season.
Judge rules on preliminary injunction in NASCAR lawsuit
And now we have a plot twist…
On Wednesday NASCAR opened their own lawsuit against 23XI Racing and Front Row Motorsports noting they "willfully" violated antitrust laws. They claims states those teams orchestrated anti-competitive collective conduct during charter negotiations.
Michael Jordan’s agent, Curtis Polk is listed as a defendant in the new lawsuit.
NASCAR comments on the new lawsuit
"The undisputed reality is that it is 23XI and FRM, led by 23XI's owner and sports agent Curtis Polk, that willfully violated the antitrust laws by orchestrating anti-competitive collective conduct in connection with the terms of the 2025 Charter Agreements,” NASCAR told AP.
"This is not the first time that 23XI and FRM have sought to impose their viewpoints, and those of their counsel, on the racing teams writ large.”
“And it is truly ironic that in trying to blow-up the Charter system, 23XI and FRM have sought to weaponize the antitrust laws to achieve their goals."
They added that the teams, "scheme to pressure NASCAR to accept their collusive terms, including by engaging in media campaigns, interfering with NASCAR's broadcast agreement negotiations, threatening boycotts of NASCAR events and engaging in a group boycott of a NASCAR Team Owner Council meeting."
NASCAR teams comment as motion to dismiss lawsuit is denied
Jeffrey Kessler, the attorney for the teams issues a comment
Kessler quickly responded after the lawsuit was filed:
"Today's counterclaim by NASCAR is a meritless distraction and a desperate attempt to shift attention away from its own unlawful, monopolistic actions,” Kessler opened.
“NASCAR agreed to the joint negotiations that they now attack. When those joint negotiations failed, they used individual negotiations to impose their charter terms, which most of the teams decided they had no choice but to accept.”
My clients' lawsuit has always been about transforming NASCAR into a more competitive and fair sport for the benefit of drivers, fans, sponsors and teams because of their love of the sport. Every major sport goes through a transition to competition when antitrust claims are asserted, and that moment has come for NASCAR.”
Today's baseless filing changes nothing. We are confident in the strength of our case and look forward to presenting it at trial."
The antitrust lawsuit is expected to continue for months.
Brad Keselowski says the NASCAR lawsuit is a threat to the sport
NASCAR accused of threatening to revoke charters for agreement
Links
NASCAR | 23XI Racing | Front Row Motorsports
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