23XI Racing and FRM have gained the upper hand in their antitrust lawsuit against NASCAR. The scales tipped in the teams’ favor after Judge Bell granted their summary motion, which contends that NASCAR operates in its own category of “premier stock racing.”
When the teams initially requested a summary motion, the goal was to prove that a typical NASCAR Cup Series team cannot jump ship and move on to other motorsports. Additionally, NASCAR owns the intellectual property for the Next Gen car. According to 23XI, this gives unequal power to the sanctioning body so that it can pursue its interests without much resistance.
Both teams say this is how NASCAR got the new lease signed with lower payments. Financial records revealed during the discovery process further proved this point, as teams apparently receive a paltry $141,000 per race, while drivers earn significantly less if they place 25th or lower.
NASCAR analyst Bob Pockrass reported on Judge Bell’s decision and wrote:
“Big 23XI/Front Row wins today — Judge Bell granted summary judgment on the definition of the ‘premier stock car racing’ market and whether NASCAR has power in that market — the trial will focus on whether NASCAR unlawfully exercised its power in that market.”
Pockrass added:
“What does that mean? It means the argument that teams could run in other series or own teams in other sports is moot.”
NASCAR, for its part, shared its displeasure with the decision and asserted that it intended to oppose alleged monopolistic practices. If the National Series loses to both teams, the rental agreement or the rentals themselves will likely face changes.
The judge explains the reasons for his decision in favor of 23XI and the FRM
Bob Pockrass also shared the reasons given by Judge Bell for dismissing NASCAR’s counterclaim. The key factor is that there is no evidence of the multi-discipline existence of a NASCAR team in other motor sports.
The court judgment said:
“In opposing Plaintiffs’ relevant market, NASCAR now contends that the same motorsports that could not provide racing teams to the Cup Series are suddenly readily available for Cup Series teams, like Plaintiffs, to sell their services. Not only is this illogical, but there is no evidence on record that racing teams in the various motorsports can only move from NASCAR to another motorsport, but not vice versa.”
Previous findings revealed NASCAR’s position on the charter deal, showing the agreements were presented in a strict, take-it-or-leave-it manner. Despite the accusations, NASCAR also has several team owners like Joe Gibbs, Rick Hendrick, Roger Penske and Richard Childress as key witnesses. They had all signed declaration letters supporting the charter system.
23XI Racing and Front Row Motorsports are currently competing as open teams after losing their preliminary injunction against NASCAR. The teams risk losing their charters permanently if the December trial does not go their way.
Edited by Vignesh Kna
