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A federal judge ruled on Friday against two NASCAR teams, including one owned by NBA Hall of Famer Michael Jordan, in their bid to be recognized as chartered teams while they continue their antitrust lawsuit against NASCAR and chairman Jim France.
The motion was denied by U.S. District Court Judge Frank Whitney from the Western District of North Carolina in Charlotte, coinciding with NASCAR executives delivering their annual "State of the Sport" address at Phoenix Raceway. The decision was handed down just hours before Cup cars took to the track for their first practice session ahead of the championship weekend, with Tyler Reddick of Jordan's 23XI Racing among the four drivers competing for Sunday's winner-takes-all finale.
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Jeffrey Kessler, a leading antitrust attorney for the plaintiffs, indicated after Monday’s hearing in Charlotte that the teams could appeal the decision immediately.
Charter Agreement
The central issue revolves around 23XI Racing and Front Row Motorsports' refusal to sign a “take-it-or-leave-it” charter agreement NASCAR presented to teams in September, just two days before the playoffs started. After over two years of negotiations, 13 of 15 teams agreed to the deal, but 23XI and Front Row declined, accusing NASCAR of acting like “monopolistic bullies” in a revenue-sharing agreement between the governing body and its teams.
As a result, NASCAR rescinded its offers for charter extensions to both 23XI and Front Row Motorsports, and their current charters will expire at the end of the year. Without the chartered status, the teams will operate as "open" teams, which means they won't receive the same share of revenue, guaranteed race spots, or other benefits that chartered teams enjoy.
Teams request
Both 23XI and Front Row have requested that the status quo be maintained while the antitrust case progresses, particularly since the new charter rules set to take effect in 2025 include provisions that would prevent teams from suing NASCAR. Kessler has argued that the teams should be released from this clause for the duration of the legal proceedings.
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About Lawsuit
23XI Racing and Front Row Motorsports have filed a preliminary injunction in their antitrust case against the National Association for Stock Car Auto Racing (NASCAR). This legal move aims to allow the teams to continue competing as chartered teams in 2025 while the case progresses through the legal system.
In a joint statement, the teams said “The 23XI and Front Row Motorsports teams are fully committed to competing in next year’s Cup Series. Today’s procedural filing is the next step in advancing our case against NASCAR and their monopolistic practices, while protecting our drivers, race teams, and sponsors by establishing our legal right to run in 2025.”
