- Racing teams say NASCAR’s claims are ‘act of desperation’
- NASCAR claims teams pressured it for better racing terms
A racing team owned by basketball Hall of Famer Michael Jordan moved to dismiss counterclaims filed by NASCAR as part of an ongoing antitrust dispute, disputing allegations that it and another team conspired against the organization for preferred racing contracts.
“NASCAR’s retaliatory counterclaim is an act of desperation that cannot withstand a motion to dismiss,” Jordan’s team and another racing team, Front Row Motorsports Inc., said Wednesday in the US District Court for the Western District of North Carolina.
NASCAR’s counterclaims filed earlier this month escalated a case brought by the teams against the organization last year, alleging it holds a monopoly over premier stock car racing in the US and claiming its charter agreements are unlawful. Chartered teams are guaranteed racing spots and earn money for performance.
Judge Kenneth D. Bell late last year granted the teams’ request for a preliminary injunction against NASCAR, allowing them to compete in the 2025 NASCAR Cup racing series as chartered teams.
The teams had argued that competing as “open” under the current charter system would be economically devastating and drive them out of business. Open teams generate revenue only from prize money and sponsorships, and they don’t receive any money or other benefits from NASCAR.
NASCAR then claimed 23XI, Front Row, and Jordan’s business partner, Curtis Polk, pressured it to accept their collusive racing terms and interfered with NASCAR’s broadcast agreement negotiations. The teams also allegedly threatened a boycott of qualifying races for a NASCAR event.
But the teams said NASCAR’s allegations of an attempted boycott are “insufficient” to plead concerted action under Section 1 of the Sherman Act, which prohibits agreements that restrain trade.
NASCAR’s failure to properly define a relevant market in this case is a “glaring deficienc[y]” that also warrants dismissal, the motion says. “NASCAR has not plausibly alleged antitrust injury. NASCAR has only alleged a purported injury to NASCAR, not to competition itself.”
The case is set to go to trial in December, and discovery is ongoing, said Jeffrey Kessler, a Winston & Strawn LLP attorney who represents Jordan’s team and FrontRow Motorsports.
NASCAR is represented by Latham & Watkins LLP.
The case is 2311 Racing LLC v. NASCAR LLC, W.D.N.C., No. 3:24-cv-00886, 3/26/25.
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