Michael Jordan’s Racing Team Drops Antitrust Appeal Against NASCAR

Two prominent racing teams, including 23XI Racing, co-owned by NBA legend Michael Jordan, have withdrawn their appeal in an ongoing antitrust dispute against NASCAR. The appeal sought to overturn a court ruling that denied a preliminary injunction addressing allegations of monopolistic practices in the stock car racing industry, according to Bloomberg.

The teams, 23XI and Front Row Motorsports, filed a motion on Wednesday to dismiss their appeal, citing “changed circumstances” in the underlying case. Per Bloomberg, NASCAR recently removed a controversial antitrust release requirement from its agreements, a move that now permits the teams to compete as open teams in the 2024 season. However, open teams are excluded from the financial benefits and privileges available to NASCAR’s chartered teams, noted Jeffrey Kessler, an attorney for Winston & Strawn LLP, in a statement.

The decision to withdraw the appeal follows a ruling earlier this month by Judge Frank D. Whitney of the US District Court for the Western District of North Carolina. The judge determined that the plaintiffs had not demonstrated the immediate and irreparable harm required to justify a preliminary injunction, pointing instead to speculative or potential harm, Bloomberg reported.

Related: Judge Denies NASCAR Teams’ Injunction Request in Antitrust Case

The lawsuit, initially filed in October, accuses NASCAR of enforcing anticompetitive restrictions, such as noncompete agreements that bar teams from participating in races outside the NASCAR circuit. Additionally, the teams took issue with a clause in NASCAR’s charter agreements requiring participants to waive antitrust claims as part of their contractual obligations.

In a filing, NASCAR’s attorneys supported the teams’ voluntary dismissal of the appeal, agreeing that further litigation would be unnecessary. “The District Court correctly denied Plaintiff-Appellants’ request for a preliminary injunction after finding that they had failed to establish any irreparable harm,” the legal team stated, according to Bloomberg. NASCAR’s lawyers emphasized that continuing the appeal would only drain the time and resources of the parties involved.

While the appeal has been dropped, the core antitrust lawsuit remains ongoing, with potential implications for NASCAR’s governance and the broader competitive landscape of professional stock car racing.

Source: Bloomberg