Federal judge denies NASCAR's motions to dismiss antitrust lawsuit involving two race teams

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 a bond to cover fees they would not be legally owed if they lose 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 suing NASCAR to compete with charter recognition throughout the 2025 season.

NASCAR and the teams that compete in the top Cup Series operate with a franchise system that was implemented in 2016 in which 36 cars have “charters” that guarantee them a spot in the field at every race and financial incentives. There are four “open” spots earmarked for the field each week.

The teams banded together in negotiations on 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 together to sue NASCAR and chairman Jim France, arguing as the only stock car entity in the United States, NASCAR has a monopoly and the teams are not getting their fair share of the pie.

Both organizations maintained they would still compete as open cars, but convinced Bell last month to give them chartered status by arguing they would suffer irreparable harm as open cars. Among the claims was 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 in a guaranteed chartered car.

NASCAR argued Wednesday that it needs that money earmarked because it would be redistributed to the chartered teams if 23XI and Front Row lose.

Jeffery Kessler, considered the top antitrust lawyer in the country, argued that NASCAR has made no such promise to redistribute the funds to other teams. Kessler said NASCAR told teams it was up to NASCAR’s discretion how it would use the money and didn’t rule out spending some on its own legal fees.

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