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NASCAR Antitrust Suit Progresses With Teams Seeking Charter Recognition

Joey Logano (22) races during a NASCAR Cup Series auto race at Atlanta Motor Speedway, Sunday, Sept. 8, 2024, in Hampton, Ga. (Hyosub Shin/Atlanta Journal-Constitution via AP)

NASCAR appeared before a federal judge in Charlotte, North Carolina, seeking the dismissal of an antitrust suit filed against the stock car series. The suit was filed by 23XI Racing, co-owned by NBA Hall of Famer Michael Jordan, and Front Row Motorsports, owned by entrepreneur Bob Jenkins. NASCAR requested that the two teams be ordered to post a bond to cover potential fees if they lose the case.

U.S. District Judge Kenneth Bell of the Western District of North Carolina presided over the hearing and indicated that the case would proceed to trial this year, with a scheduled trial in December. The teams had previously sought recognition as chartered teams, which was initially denied by Judge Frank Whitney but later granted by Judge Bell.

The dispute revolves around NASCAR's franchise system implemented in 2016, where 36 cars hold charters guaranteeing them race spots and financial incentives. The remaining four spots are open each week. 23XI and Front Row refused to sign a new charter agreement offered by NASCAR, leading to the lawsuit alleging NASCAR's monopoly and unfair distribution of resources.

During the hearing, Judge Bell questioned both sides on payout structures and potential harm to NASCAR if the teams competed as open cars. NASCAR expressed willingness to revert to the pre-charter model if necessary. The judge emphasized the need to expedite the case and discouraged disputes during the discovery process.

The hearing saw arguments from both parties, with NASCAR contending that the teams acted as a cartel in negotiations. The teams, represented by top antitrust lawyer Jeffery Kessler, challenged NASCAR's intentions regarding the redistribution of funds if they lose the case.

The case has drawn attention due to the involvement of high-profile figures like Michael Jordan and Denny Hamlin. Despite some light-hearted moments in court, the proceedings underscore the ongoing legal battle between NASCAR and the two teams, with the judge signaling that the case will move forward to trial.

For more auto racing news, visit AP auto racing.

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