A federal judge on Friday denied a motion by two NASCAR teams — one owned by NBA Hall of Famer Michael Jordan _ to be recognized as chartered teams as they proceed in an antitrust lawsuit against the stock car series and chairman Jim France.
The motion was signed by federal judge Frank Whitney of the United States District Court of Western North Carolina in Charlotte at the exact same time NASCAR executives were giving their annual “State of the Sport” address at Phoenix Raceway.
The decision came down just hours before Cup cars hit the track for the first practice session of championship weekend. Tyler Reddick, who drives for the Jordan-owned 23XI Racing, is one of four drivers who is Sunday’s winner-take-all finale at Phoenix.
Jeffrey Kessler, the top antitrust lawyer in the country, indicated after Monday’s hearing in Charlotte that the plaintiffs can immediately appeal the ruling.
At issue is that both 23XI and Front Row Motorsports refused to sign a take-it-or-leave-it charter agreement presented to teams by NASCAR in September just 48 hours before the playoffs began. The offers came after more than two years of negotiations between NASCAR and its teams, and 13 of 15 organizations signed the deal.
23XI Racing and Front Row Motorsports declined to sign and have accused NASCAR of being “monopolistic bullies” in what is essentially a revenue-sharing agreement between the sanctioning body and its teams.
NASCAR has since rescinded the offers on charter extensions to 23XI and Front Row. Their current charters expire at the end of the calendar year. The teams are free to operate as “open” teams but the lack of chartered protection denies them an equal share of revenue, a guaranteed spot in the field of 38 races and other provisions under the charter agreements.
23XI and Front Row have asked for things to remain status quo as their antitrust case proceeds because the new charters that begin in 2025 prevent teams from suing NASCAR. Kessler asked that the teams be released from that clause for the duration of the lawsuit.
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