Federal law has been updated in Nascar to oppose Racing or 23x and Front Motorsport
A Federal Judge on Tuesday undertook NASCAR's counter-capacity against two teams that sued the racing series on the basis of anti-trusted allegations.
U.S. District Judge Kenneth Bell granted summary judgment in favor of 23XI Racing and Front Row Motorsports, rejecting NASCAR's claim that 23XI co-owner Curtis Polk illegally colluded with other teams during negotiations for new charters.
23xi is also owned by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, and Polk is Jordan's longtime business manager.Polk was also part of a four-member negotiating team that worked with NASCAR for more than two years on the deal, which was signed by 13 of the 15 organizations last year.
NASCAR argued in its counterclaim that the boycott of the 2023 team owners council meeting hurt its negotiations over media rights and that the teams got a better deal from the 15 organizations that came together to negotiate the charter than they could have gotten if NASCAR had negotiated with the teams separately.
Bell considered the boycott a negotiating strategy "that had little effect" as Nascar began regular negotiations thereafter.
Bell also found that 23XI and FRM did not involve an "impossible restraint of trade" because private meetings between NASCAR and the teams resulted in multiple modifications to the collective bargaining agreement, and because all collective bargaining agreements were the same between all teams, the teams' cooperation in the negotiations was likely effective.
"The evidence shows that there were not only individual negotiations, but that these ended the agenda on a regular basis.
Bell also must rule on two other motions, one by NASCAR seeking a judgment in his favor and one by 23XI and FRM to designate the market as "premier stock car racing."
Two days of mediating work during the week ended this holiday and the time was set for Test Day 1 in the North.
23xi and FRM are among 15 companies expanding the charters at the heart of NASCAR's business model.The declared car is guaranteed weekly races and without them, both teams are said to be virtually out of business.
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NASCAR stated in its statement that it still hopes for an agreement.The season ends with Sunday's championship finale in Phoenix, and Hamlin is one of four drivers eligible for the Cup title.
Nascrcr said: "We respect our opinion, although we agree about his good opinion.
"If no solution is found, we intend to appeal this decision at an appropriate time," he said.
