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A federal judge on Tuesday issued a key victory for two race teams, one owned by Michael Jordan, that further pressures NASCAR to settle the antitrust lawsuit filed against it by 23XI Racing and Front Row Motorsports.
NASCAR Commissioner Steve Phelps said last week the series is “trying our hardest” to settle the federal antitrust lawsuit with the two teams suing in the most expansive comments yet from the defendants.
U.S. District Judge Kenneth Bell ruled Tuesday in favor of 23XI, owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Bob Jenkins-owned Front Row, on an argument over the market definition of “premier stock-car racing.” Bell found that NASCAR controls the market and NASCAR’s argument that teams can race in other series is moot.
The teams said in alleging the relevant market for premier stock car racing teams that “NASCAR’s Cup Series is currently the only buyer.” The argument was backed by the the expert opinion of Dr. Daniel Rascher, who concluded that “premier stock car racing” is a distinct form of automobile racing, and other types of motorsports like Formula 1 and IndyCar, and all lower levels of stock car racing, are not an equal substitute to NASCAR.
NASCAR in a counterclaim said the teams unlawfully conspired in banding together for negotiations on new charter agreements, but Bell found “NASCAR deliberate(ly), clear(ly) and unambiguous(ly)” alleged that the relevant market is “the market for entry of cars into NASCAR Cup Series races in the United States and any other location where a Cup Series race is held.”
