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Racing Rivals Accuse NASCAR of Retaliation in High-Stakes Antitrust Battle

By  |  December 12, 2024

Michael Jordan-owned 23XI Racing and Front Row Motorsports are doubling down on their antitrust claims against NASCAR, asserting the racing organization is unfairly monopolizing the stock car racing market. According to Sportico, the teams argued in a court filing Thursday that NASCAR is effectively penalizing them for asserting their rights, urging the court to grant an injunction that would address their grievances.

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    The case has drawn attention for its high-profile litigants and sharp rhetoric. A recent development saw U.S. District Judge Kenneth D. Bell take over the case from Judge Frank D. Whitney, who previously denied an initial injunction request. The court did not disclose reasons for the reassignment, but the change could influence the trajectory of the litigation. If unresolved, the case is expected to enter a discovery phase lasting through fall 2025.

    Antitrust Claims and Injunction Demand

    23XI Racing and Front Row Motorsports are pushing for an injunction that would allow them to reap the advantages of charter team status without signing a charter agreement or relinquishing their legal claims. The injunction is central to their broader antitrust case, which accuses NASCAR and its CEO, Jim France, of stifling competition through monopolistic practices.

    Related: NASCAR Moves to Dismiss Antitrust Lawsuit Filed by 23XI Racing

    NASCAR has vigorously contested the motion. As reported by Sportico, the organization maintains that injunctions should be reserved for “extraordinary circumstances” and argues that the plaintiffs have not demonstrated any irreparable harm that couldn’t be resolved through financial remedies. NASCAR also dismissed the claims as “self-inflicted,” accusing the teams of orchestrating email campaigns to fabricate evidence of harm.

    The Plaintiffs’ Counterargument

    In their latest filing, 23XI Racing and Front Row Motorsports insist that NASCAR’s actions have caused irreparable harm that cannot be mitigated by monetary compensation. They allege that NASCAR has pressured them into relinquishing antitrust claims as a condition of competing as charter teams. Additionally, they accuse NASCAR of reneging on an agreement to approve the transfer of a charter from Stewart-Haas Racing to Front Row, a move that would have bolstered Front Row’s competitive standing. This reversal, the plaintiffs claim, underscores their argument for immediate judicial intervention.

    The transfer issue adds a layer of complexity to the dispute. According to the plaintiffs, NASCAR initially assured Front Row the charter transfer was authorized, only to backtrack after Front Row joined 23XI Racing in filing the antitrust lawsuit. They argue this abrupt reversal reflects retaliatory behavior and reinforces the need for an injunction.

    NASCAR’s Response

    In its opposition, NASCAR reiterated that the alleged harms are speculative and tied to the plaintiffs’ own decisions. The organization highlighted the absence of direct fallout—no drivers or sponsors have cut ties due to the lack of a charter designation—and maintained that any potential losses could be addressed through compensation, should the plaintiffs prevail.

    Source: Sportico