Federal judges rule in favor of NASCAR in lawsuit filed by Jordan-owned 23XI and Front Row
CHARLOTTE, N.C. (AP) — A three-judge federal appellate panel ruled Thursday in favor of NASCAR in the antitrust lawsuit filed by two teams, one owned by Michael Jordan, and vacated an injunction that required 23XI and Front Row be recognized as chartered teams as their case snakes through the legal system.
Both race teams sued NASCAR late last year after refusing to sign new agreements on charter renewals. The charter system is similar to franchises in other sports, but the charters are revocable by NASCAR and have expiration dates. 23XI, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, joined Front Row in suing NASCAR after 13 other organizations signed the renewals.
The two teams sued and asked for a temporary injunction that would recognize them as chartered teams for this season. The antitrust case isn't scheduled to be heard until December.
The teams said they needed the injunction because the current charter agreement prohibits them from suing NASCAR. 23XI also argued it would be harmed because Tyler Reddick's contract would have made him a free agent if the team could not guarantee him a charter-protected car.
The original judge ruled that NASCAR's charter agreement likely violated antitrust law in granting the injunction. But when
they heard arguments last month
, the three judges at the the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, indicated they were skeptical of that decision.
The judges said in Thursday's ruling they were not aware of any case that supports the lower court's theory of antitrust law, so they vacated the injunction.
The teams have 14 days to appeal to the full court. The injunction also has no bearings on the merits of the case.
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