Current:Home > Finance2 teams suing NASCAR ask court to allow them to compete under new charter agreement as case proceeds-InfoLens
2 teams suing NASCAR ask court to allow them to compete under new charter agreement as case proceeds
View Date:2024-12-23 10:37:29
CHARLOTTE, N.C. (AP) — The two teams suing NASCAR asked a judge for a preliminary injunction Wednesday so they can compete next season under the charter system they are challenging as their antitrust case moves through federal court.
23XI Racing, which is owned by Michael Jordan, veteran driver Denny Hamlin and Curtis Polk, and Front Row Motorsports, owned by Bob Jenkins, sued NASCAR and chairman Jim France last week in the Western District of North Carolina. The two teams accused NASCAR of being “monopolistic bullies” after refusing to sign new charters proposed by the stock car series.
The charter system is a revenue-sharing model that is similar to a franchise in other professional sports. Although charters can be sold and leased, the charters have contractually binding terms, expiration dates and can be revoked by NASCAR. Teams fought to have them made permanent but NASCAR would not consider the issue and the newest extension runs through 2031.
23XI and Front Row allege in their suit that the agreement that goes into effect next season limits competition by unfairly binding teams to the series, its tracks and its suppliers. 23XI and Front Row were the only two organizations out of 15 that refused to sign; almost every other team has said they signed on deadline only because NASCAR threatened to do away with the charter system entirely.
23XI and Front Row have hired Jeffrey Kessler, a top antitrust attorney who has represented the players in all four major professional North American sports. Kessler told The Associated Press that the two teams would sign the 2025 agreements if they receive a court order that would release them from a clause that prohibits teams from suing NASCAR.
“A court order will prevent (NASCAR) from enforcing that release term, and that way we can compete with the charters while we litigate against you going forward,” Kessler said. “We would sign them if they cannot enforce the antitrust release. If we don’t win the motion, then (the teams) will have to compete open.”
Jenkins told AP that the two teams stand to miss out on $45 million in combined revenue if they compete as un-chartered teams. But, he’s willing to do so for Front Row because he believes the case against NASCAR is winnable.
“We’re pretty confident about this lawsuit or we wouldn’t be doing it,” Jenkins said. “There’s a lot of money out there. I’m hoping NASCAR won’t fight the injunction and we can move forward.”
Polk, who is Jordan’s longtime right-hand man and part of the 23XI ownership group, told AP he hoped Wednesday’s filing “highlights for Cup teams, their drivers, employees, sponsors and fans how restrictive is the economic system that we operate under.”
“The system is what enabled a take-it-or-leave offer, coupled with the threat of losing our charters on September 6th,” he said.
NASCAR has not commented on the lawsuit and does not comment on pending litigation.
23XI and Front Row currently field two cars each in the elite Cup Series and have reiterated to AP they intend to compete in 2025 as three-car teams with or without the charters. Front Row in May purchased an additional charter from Stewart-Haas Racing and 23XI in August entered a purchase agreement with SHR for a charter.
Tyler Reddick of 23XI was the regular-season champion and he and Hamlin, who drives for Joe Gibbs Racing, head into Sunday’s playoff elimination race at Charlotte Motor Speedway still eligible for this year’s Cup title.
The latest filing asks for immediate access to documents and files from six NASCAR executives, three of whom are members of the series-owning France family. NASCAR was founded in 1948 by the late Bill France Sr. and is currently run by his son, Jim, while his granddaughter Lesa France Kennedy, and great-grandson, Ben Kennedy, have senior executive roles.
Kessler is also seeking documents from NASCAR President Steve Phelps, chief operating officer Steve O’Donnell and Scott Prime, the senior vice president of global strategy.
NASCAR’s final offer was presented to the teams less than 48 hours before the September playoff-opening race at Atlanta Motor Speedway. Teams were initially given a deadline of one hour to sign the 100-plus page document, but after they balked, the deadline was extended until midnight.
“NASCAR’s dominant control over racing is not because of its superior skill or business acumen, but rather its history of exclusionary acts and restrictive agreements that have stifled competition through its monopoly power,” Kessler said. “We believe our expedited discovery requests of NASCAR and the France family will shed light on their anticompetitive practices and support a preliminary injunction ruling that 23XI and Front Row Motorsports have a legally protected right to race next year while our antitrust case proceeds in court.”
Among the items requested are documents surrounding NASCAR’s contracts with independently owned racetracks that have hosted Cup Series races since 2016; NASCAR’s acquisitions of International Speedway Corporation (ISC) and Automobile Racing Club of America (ARCA); and the charter agreement provisions that restrict teams from competing in non-NASCAR events and from using Next Gen parts and cars in non-NASCAR events.
___
AP auto racing: https://apnews.com/hub/auto-racing
veryGood! (92157)
Related
- Powerball winning numbers for Nov. 9 drawing: Jackpot rises to $92 million
- United Airlines will board passengers by window, middle, then aisle seats
- Hollywood’s actors strike is nearing its 100th day. Why hasn’t a deal been reached and what’s next?
- Arraignment delayed again for suspect charged with murdering Tupac Shakur
- Ex-Duke star Kyle Singler draws concern from basketball world over cryptic Instagram post
- After boosting subscriber count, Netflix hikes prices for some. Here's how much your plan will cost.
- While visiting wartime Israel, New York governor learns of her father’s sudden death back home
- IAEA team gathers marine samples near Fukushima as treated radioactive water is released into sea
- Georgia's humbling loss to Mississippi leads college football winners and losers for Week 11
- California Gov. Gavin Newsom to make a one-day visit to Israel en route to China
Ranking
- Justice Department says jail conditions in Georgia’s Fulton County violate detainee rights
- What could convince Egypt to take in Gaza's refugees?
- Bottle of ‘most-sought after Scotch whisky’ to come under hammer at Sotheby’s in London next month
- Slovakia’s president rejects appointment of climate change skeptic as environment minister
- How to protect your Social Security number from the Dark Web
- Billie Eilish reveals massive new back tattoo, causing mixed social media reactions
- Haiti arrests one of the main suspects in the killing of President Jovenel Moïse
- 14 cows killed, others survive truck rollover crash in Connecticut
Recommendation
-
Patricia Heaton criticizes media, 'extremists' she says 'fear-mongered' in 2024 election
-
FDA is thinking about a ban on hair-straightening chemicals. Stylists say Black women have moved on
-
Jax Taylor and Shake Chatterjee's Wild House of Villains Feud Explained
-
Jeezy Breaks Silence on Jeannie Mai Divorce
-
'I know how to do math': New Red Lobster CEO says endless shrimp deal is not coming back
-
Bad Bunny announces 2024 Most Wanted Tour: Here's how to get tickets, when he's performing
-
Minnesota’s budget surplus grows to a projected $2.4 billion, fueling debate over spending
-
5 Things podcast: Independent probe could help assess blame for the Gaza hospital strike