Latest news with #FrontRowMotorsports
TimesLIVE
an hour ago
- Automotive
- TimesLIVE
Michael Jordan's 23XI Racing charter in jeopardy after court ruling
A US appeals court on Thursday vacated a preliminary injunction that allowed Michael Jordan's 23XI Racing and another NASCAR team to be treated as chartered teams, putting the teams' futures in NASCAR in question. 23XI Racing, whose owners include Jordan and NASCAR driver Denny Hamlin, and Front Row Motorsports refused to sign a take-it-or-leave-it charter agreement NASCAR presented in September, while the other 13 organisations in the Cup Series proceeded to sign. The two holdouts filed an antitrust lawsuit against NASCAR the next month. In December, US district judge Kenneth D Bell granted the teams' request for a preliminary injunction to be recognised as chartered teams while their lawsuit was active. NASCAR slammed the decision and brought an appeal to the fourth circuit court of appeals in Richmond. On Thursday, a three-judge panel unanimously ruled in NASCAR's favour and vacated the preliminary injunction. "In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude the plaintiffs made a clear showing they were likely to succeed on the merits of the theory", the decision read in part. "Without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction. We therefore conclude the district court abused its discretion in entering the preliminary injunction it did." 23XI Racing and Front Row are allowed to compete in the Cup Series, but having charter status guarantees them automatic spots in races and they would earn more money with a charter than as "open" teams. An open team must qualify their way into each race. They can also file for a petition for rehearing.
Reuters
5 hours ago
- Business
- Reuters
Michael Jordan's 23XI Racing charter in jeopardy after court ruling
June 6 - A United States appeals court on Thursday vacated a preliminary injunction that allowed Michael Jordan's 23XI Racing and another NASCAR team to be treated as chartered teams, putting the teams' futures in NASCAR in question. 23XI Racing -- whose owners include Jordan and NASCAR driver Denny Hamlin -- and Front Row Motorsports refused to sign a take-it-or-leave-it charter agreement NASCAR presented in September, while the other 13 organizations in the Cup Series proceeded to sign. The two holdouts filed an antitrust lawsuit against NASCAR the following month. In December, U.S. District Judge Kenneth D. Bell granted the teams' request for a preliminary injunction to be recognized as chartered teams while their lawsuit was active. NASCAR slammed that decision and brought an appeal to the Fourth Circuit Court of Appeals in Richmond, Va. On Thursday, a three-judge panel unanimously ruled in NASCAR's favor and vacated the preliminary injunction. "In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory," the decision read in part. "And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction. ... We therefore conclude that the district court abused its discretion in entering the preliminary injunction that it did." 23XI Racing and Front Row are still allowed to compete in the Cup Series, but having charter status guarantees them automatic spots in races and they would earn more money with a charter than as "open" teams. An open team must qualify their way into each race. They can also file for a petition for rehearing. --Field Level Media
NBC Sports
10 hours ago
- Automotive
- NBC Sports
Questions, answers about appeal court ruling in NASCAR's favor in matter with 23XI, Front Row
Here is a breakdown of Thursday's court decision and its impact: WHAT HAPPENED THURSDAY? A three-judge panel from the Fourth Circuit Court of Appeals unanimously ruled to vacate the preliminary injunction that a U.S. District court judge had granted 23XI Racing and Front Row Motorsports to run as chartered teams despite not signing the charter agreement. HOW DOES THURSDAY'S DECISION IMPACT MATTERS THIS WEEKEND AT MICHIGAN? It does not in any way. WHY? 23XI Racing and Front Row Motorsports can file a petition for rehearing (requesting the court reconsider its decision) or a petition for rehearing en banc —meaning the full Fourth Circuit Court of Appeals addresses the matters instead of the three-judge panel. This must be filed within 14 calendar days after entry of judgment (June 5). So that would put the deadline at June 19. IF THE TEAMS DO NOT SEEK A REHEARING, THEN WHAT HAPPENS? The decision by the three-judge panel becomes effective seven days after the expiration of time for filing a petition for rehearing. In this matter, that would mean the panel's decision could become effective on June 26 — two days before the Atlanta race. WHAT HAPPENS IN THAT SITUATION? The 23XI Racing and Front Row Motorsports cars would be classified as open cars instead of chartered cars. WHAT WOULD HAPPEN TO THEIR CHARTERS? That would be up to NASCAR. SO 23XI RACING AND FRONT ROW MOTORSPORTS COULD CONCEIVABLY FAIL TO QUALIFY FOR RACES IF THEY LOST THEIR CHARTERS? If they were an open team, yes, but, in the 50 races since the start of last year, only two — the Daytona 500 last year and this year — had any cars fail to qualify. BUT BOTH TEAMS WOULD EARN LESS MONEY AS AN OPEN TEAM, CORRECT? Yes, but before one goes too far down this road, let's see what 23XI Racing and Front Row Motorsports decide to do after today's court opinion. For now, 23XI Racing and Front Row Motorsports remain chartered teams and their six cars are all chartered cars. WHAT WAS THE RESPONSE FROM THE TEAMS THURSDAY? This is the statement from Jeffrey Kessler, the lead attorney for 23XI Racing and Front Row Motorsports: 'We are disappointed by today's ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps. This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trial scheduled for December 1. We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.' WHAT DID THE THREE-JUDGE PANEL STATE IN ITS OPINION? 'In entering a preliminary injunction in this case, the district court held that the plaintiffs (23XI and Front Row) were likely to succeed on the merits of their antitrust action against the National Association for Stock Car Auto Racing, LLC (NASCAR), and its CEO, James France, because NASCAR, as an alleged monopolist, required the plaintiffs, as a condition of doing business with them, to enter into a release for past conduct. Because that theory of antitrust law is not supported by any case of which we are aware, we conclude that it was not a likely basis for success on the merits and vacate the injunction.' The judges later stated in their opinion … 'In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory. And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction. … We therefore conclude that the district court abused its discretion in entering the preliminary injunction that it did. HOW DOES THIS IMPACT THE LAWSUIT 23XI RACING AND FRONT ROW MOTORSPORTS FILED LAST YEAR VS. NASCAR? It does not. Trial is scheduled for Dec. 1.
New York Times
15 hours ago
- Business
- New York Times
NASCAR wins key appeal in antitrust lawsuit filed by Michael Jordan's 23XI Racing, Front Row Motorsports
A three-judge federal appeals court has overturned a key ruling in the NASCAR antitrust case, dealing a significant blow to the race teams seeking to retain their status for this season. Front Row Motorsports and 23XI Racing, the team co-owned by Michael Jordan and three-time Daytona 500 winner Denny Hamlin, had won a preliminary injunction from a U.S. District Court in December that allowed them to race as 'charter' teams in 2025 without being subjected to a clause that prevented them from suing NASCAR. Advertisement But the U.S. Court of Appeals overturned that Thursday, ruling the lower court 'abused its discretion' with the preliminary injunction, clearing the way for NASCAR to strip three charters from each of the two race teams. The charters are valued in the tens of millions of dollars. Charters are franchise-like licenses that allow race teams to have guaranteed entries into NASCAR Cup Series races and earn the accompanying higher payouts. Without charters, 23XI and Front Row would have to race as 'open' teams and risk failing to qualify for a race; open teams also get drastically less money from each race than charter teams. The ruling follows a hearing last month in which the three judges expressed considerable skepticism over the grounds on which the preliminary injunction was granted, saying there was no similar precedent in more than 125 years of the Sherman Antitrust Act. At issue was a release clause in NASCAR's 2025 charter agreements the teams claimed would prevent them from bringing antitrust action against NASCAR if they signed it. The lower court agreed with the teams that the clause was a monopolistic practice and allowed them to sign a version of the charter agreement that removed the release clause while the lawsuit was pending this season. But the appeals court disagreed, ruling there were no previous cases that said requiring a release constituted an antitrust violation. 'Because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory,' the court said. 'And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.' Advertisement During the May hearing, judges had warned the teams their claim came across as 'having your cake and eating it, too.' That's because the teams were suing over monopolistic practices while also asking the court to force NASCAR to allow them to participate. 'If you don't want the contract, you don't enter into it and you sue,' Judge Paul Niemeyer said at the time. 'Or if you want the contract, you enter into it, and you've given up past releases.' It is not yet clear what will happen next in the immediate aftermath of Thursday's ruling. If NASCAR chooses to follow through by stripping the charters, the teams would lose approximately a combined quarter billion dollars in charter values in addition to the lower race winnings they will now receive. The teams can still appeal this ruling, so it would not go into effect immediately. Any team losing a charter is impactful considering the additional millions in lost revenue associated with owning a charter. Now, compound that by three — the number of charters each owned by 23XI Racing and Front Row Motorsports — and the magnitude of Thursday's ruling really is driven home. Both teams stand to lose a considerable amount of money, potentially to such a degree that it raises questions about how each team will be able to effectively operate going forward. Yes, both ownership groups have the financial means to withstand the short-term hit as their federal lawsuit against NASCAR plays out in the courts (the trial is set to begin Dec. 1). And the teams could still appeal and win, which would make all this null and void. As it stands, though, this appears to be a body blow that could stunt their respective competitiveness over the remainder of the 2025 season. From a bigger perspective as it relates to the ongoing lawsuit, should the teams appeal and lose, one has to wonder if Thursday's ruling influences 23XI and Front Row to reconsider pursuing their joint federal lawsuit. Or perhaps it emboldens them even more to continue forward, even in spite of the financial impact. — Jordan Bianchi, motorsports writer
Yahoo
15 hours ago
- Automotive
- Yahoo
Appeals court rules in favor of NASCAR and overturns injunction for Michael Jordan's 23XI Racing and Front Row Motorsports
A federal appeals court ruled in favor of NASCAR on Thursday in the sanctioning body's ongoing legal battle with Michael Jordan's 23XI Racing and Front Row Motorsports. The Fourth Circuit of Appeals in North Carolina overturned an injunction that allowed the teams to race as chartered teams as their lawsuit against NASCAR proceeded. The teams won the injunction in December after they were the only two teams in NASCAR's Cup Series to not sign the current franchising agreement between NASCAR and its teams. 'In short, because we have found no support for the proposition that a business entity or person violates the antitrust laws by requiring a prospective participate to give a release for past conduct as a condition for doing business, we cannot conclude that the plaintiffs made a clear showing that they were likely to succeed on the merits of that theory," the decision stated. "And without satisfaction of the likelihood-of-success element, the plaintiffs were not entitled to a preliminary injunction.' Advertisement Front Row and 23XI had said that NASCAR was monopolistic in its antitrust suit filed in October. Chartered teams receive guaranteed entries into every Cup Series race and, most importantly, get a bigger share of purse money from the season-ending points fund. Per the terms of the decision, the teams have 14 days to ask for another hearing and the revocation of the charters — if it happened — wouldn't go into effect for another week after that 14-day deadline. There's still plenty of time for more legal machinations to happen before the teams' charters would get taken. Where everything stands now There were signs the teams' argument could be in trouble a month ago during a May hearing. The appeals court proceeding happened after NASCAR appealed the injunction in favor of the teams. A judge on the panel openly questioned the teams' argument that they should receive the benefits of the charter contract while not signing the contract. Advertisement From Sportsnaut: 'I had thought coming in and you can correct me, that the district court concluded that the (lawsuit release clause) was anticompetitive and therefore, to protect your antitrust claims, the court wanted you to be able to race but without a contract that included the release,' said [Judge Paul V.] Niemeyer, 'and my concern and I'll just lay it out there, I don't understand the Section 2 analysis, what we need to have is the exercise of monopoly power to exclude competition. 'I can't see why a release addresses competition in any sense. If you don't want the contract, you don't enter into it and you sue. But if you do want the contract, you enter into it, and you've given up past releases. But the Omega (a precedence case) is that you can't have your cake and eat it too.' The teams have been represented by famed antitrust lawyer Jeffrey Kessler. The 71-year-old has been on the winning side in previous high-profile sports cases like the NCAA's lifting of its cap on college athlete compensation, the United States Women's National Team's pay discrimination case and even Tom Brady's appeal of his four-game suspension as part of the "Deflategate" scandal. Neither 23XI or Front Row seem to be at risk of failing to qualify for any races if they lose their charter protections because no race since the Daytona 500 has featured more than 40 teams attempting to qualify for the 40 available starting spots. In fact, all but one race since the 500 has not featured a full field. The money, however, is a much bigger factor. Cup Series teams rely heavily on purse and points fund money from NASCAR. With chartered teams getting a much larger share of that money than open teams, the budgets of both 23XI and Front Row Motorsports could be heavily impacted. Advertisement The decision could also lead to a fascinating dilemma. Both Front Row and 23XI expanded from two cars to three over the offseason by purchasing charters from the now defunct Stewart-Haas Racing team that closed at the end of the season. NASCAR would assumably take over the ownership of the charters since SHR no longer exists and other chartered teams could end up getting larger shares of the money designated for chartered teams. Front Row currently fields cars for Todd Gilliland, Noah Gragson and Zane Smith, while 23XI Racing has cars for Riley Herbst, Tyler Reddick and Bubba Wallace.
