CHARLOTTE, N.C. — A federal judge has pushed for settlement talks in the ongoing legal dispute between NASCAR and two racing teams, including the one owned by basketball legend Michael Jordan, signaling rising tensions during a courtroom hearing on Tuesday.
U.S. District Judge Kenneth Bell of the Western District of North Carolina questioned both NASCAR and the teams—23XI Racing, co-owned by Jordan and three-time Daytona 500 victor Denny Hamlin, and Front Row Motorsports, owned by entrepreneur Bob Jenkins—about the objectives of their antitrust conflict, which has been brewing for several months. Bell expressed concern over the financial implications of the legal battle, emphasizing that it seems unlikely for either side to emerge victoriously.
The discord began last September when 23XI and Front Row refused to accept a new charter agreement from NASCAR. This arrangement, akin to a franchise model, guarantees entry to lucrative Cup Series races and provides a steady income stream. While 13 other teams agreed to the terms, some alleged they felt cornered into acceptance.
During the nearly two-hour hearing, the focus was on the teams’ motion to dismiss NASCAR’s countersuit, which accuses Curtis Polk, Jordan’s business manager, of violating antitrust laws by attempting to organize anti-competitive behavior among the teams. NASCAR’s legal team claimed that Polk communicated with other teams about forming a “cartel,” which they argued included threats to boycott races and refusal to negotiate individually.
In the courtroom, one NASCAR attorney referenced a message from Polk allegedly quoting Benjamin Franklin, stating, “We must all hang together, or most assuredly we shall all hang separately.” This revelation angered Jeffrey Kessler, the attorney representing the teams, who contended that the information should have remained confidential and asserted that NASCAR’s claims do not demonstrate any illegal actions were taken by Polk or the Race Team Alliance during charter negotiations.
Kessler asserted that NASCAR is diverting attention from its monopolistic practices with these allegations. “It makes absolutely no sense,” Kessler remarked outside the courthouse, criticizing the attacks on Polk as baseless. He indicated that the teams were open to discussing a settlement, despite NASCAR’s firm stance against renegotiating the charter agreements.
NASCAR attorneys argued that Polk pressured the 15 teams in the Race Team Alliance to stand together in negotiations, adding that the organization took the threat of a boycott seriously after teams previously skipped an important meeting with NASCAR executives. Concerns were heightened that such a boycott could impact race schedules, further complicating the situation.
Judge Bell did not provide a timeframe for his ruling but indicated he would act expeditiously. Kessler stated that he plans to file an appeal by week’s end after a three-judge federal appellate panel dismissed an injunction that had required NASCAR to recognize 23XI and Front Row as chartered teams during the legal proceedings. He aims to have the full appellate court review the matter.
Currently, NASCAR recognizes 36 chartered cars for races, leaving only 40 spots on the starting grid. Should 23XI and Front Row not be acknowledged as chartered, their six cars would have to race as “open” teams, which entails qualifying based on speed rather than guaranteed entry, significantly affecting their financial stability.
The legal skirmish touches on broader issues concerning the governance of NASCAR and the intricacies of its business model, with implications for teams navigating the competitive landscape. The next hearing on the dispute over discovery issues, particularly concerning documents from Race Team Alliance Executive Director Jonathan Marshall, is scheduled for Tuesday.
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