CHARLOTTE, N.C. (AP) — A federal judge has denied NASCAR’s motions to dismiss an antitrust lawsuit filed against the stock car series.
U.S. District Judge Kenneth Bell of the Western District of North Carolina also denied NASCAR’s request that two teams — 23XI Racing and Front Row Motorsports — be ordered to post bond to cover costs they would not be required to pay. legally owed if they lost the case.
23XI Racing, a team co-owned by NBA Hall of Famer Michael Jordan, and Front Row Motorsports, which is owned by entrepreneur Bob Jenkins, are pursuing NASCAR to compete for charter recognition throughout the 2025 season.
NASCAR and the teams that compete in the top Cup Series operate with a franchise system implemented in 2016 in which 36 cars benefit from “charters” that guarantee them a place in the field at each race and financial incentives. There are four “open” spots reserved on the field each week.
The teams banded together in negotiations over an improved charter system in an often contentious battle with NASCAR for nearly two years. In September, NASCAR finally had enough and presented the teams with a take-it-or-leave-it offer that had to be signed the same day, just 48 hours before the start of the playoffs.
23XI and Front Row were the only two teams out of 15 who refused to sign the new charter agreement. They then teamed up to sue NASCAR and its president Jim France, arguing that as the only stock car entity in the United States, NASCAR has a monopoly and that the teams are not getting their fair share of the pie.
Both organizations claimed they would continue to compete as open cars, but convinced Bell last month to grant them charter status by arguing they would suffer irreparable harm as open cars. Among the claims were that 23XI driver Tyler Reddick, last year’s regular season champion, would contractually become an immediate free agent if the team did not have him on a guaranteed rental car.
NASCAR argued Wednesday that it needed the money because it would be redistributed to licensed teams if 23XI and Front Row lost.
Jeffery Kessler, considered the nation’s top antitrust lawyer, argued that NASCAR made no such promise to redistribute funds to other teams. Kessler said NASCAR told teams it was up to NASCAR’s discretion how it would use the money and did not rule out spending some of it on its own legal fees.
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