The ongoing legal fight between NASCAR and two of its teams, including the one co-owned and operated by Michael Jordan, took one more twist before the season-opening Daytona 500 this weekend.
NASCAR on Wednesday filed a brief to the U.S. Court of Appeals for the Fourth Circuit (Richmond, Va.) against the injunction that has granted 23XI Racing and Front Row Motorsports permission to operate as chartered members despite not signing a charter.
In December, U.S. District Judge Kenneth D. Bell ruled in favor of Front Row and Jordan’s 23XI Racing, who sought to be recognized as chartered teams while pursuing antitrust litigation against NASCAR.
The two racing teams had refused to sign a take-it-or-leave-it charter agreement presented to them in September, which the other 13 organizations racing in the Cup Series signed; 23XI and Front Row called NASCAR “monopolistic bullies” for its business practices in the suit.
At the time, NASCAR said Bell erred in his judgment and asserted it was “never given the opportunity” to explain issues related to charter transfers.
NASCAR stuck with that tack in Thursday’s appeal, which claims that Bell’s directives “flout federal antitrust law” while ignoring significant evidence. NASCAR also took issue with Bell ordering the company to approve 23XI’s purchase of a charter from Stewart-Haas Racing, which went beyond what 23XI requested in its suit.
“These injunctions misuse the judicial power to force NASCAR to treat its litigation adversaries as its business partners and confidants, undermining the mutual trust that has fueled NASCAR’s growth and success,” NASCAR’s attorneys wrote in the brief.
“Worse, the district court conjured from thin air a categorical ban on sports leagues including releases broad enough to encompass antitrust claims in their agreements — eliminating the need to prove anticompetitive conduct, a crucial element.”
NASCAR’s appeal will not prohibit 23XI or Front Row from competing in the Daytona 500. The teams are due to respond on March 14, with a hearing not expected to begin until May. In the meantime, the injunction won by 23XI and Front Row remains in place.
–Field Level Media
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