Latest news with #NASCAR-sanctioned
Yahoo
05-03-2025
- Automotive
- Yahoo
NASCAR suing Michael Jordan's 23XI Racing, Front Row Motorsports; refers to pair as ‘illegal cartel': The Athletic
CHARLOTTE, N.C. (WGHP) — The legal saga between two prominent NASCAR teams and NASCAR itself has taken a new turn. that NASCAR is now suing the racing teams , and . Michael Jordan, Denny Hamlin's 23XI Racing, Front Row Motorsports suing NASCAR over 'anti-competitive practices' 23XI Racing is owned by basketball Hall of Famer Michael Jordan, three-time Daytona 500 winner Denny Hamlin, and Curtis Polk. Front Row Motorsports is owned by Bob Jenkins and Brad Jenkins; both teams are based in North Carolina. against NASCAR and its CEO Jim France over 'their anti-competitive practices and monopolistic control of the sport.' 23XI and FRM released the following joint statement on their lawsuit: 'We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans.' 23XI Racing and Front Row Motorsports According to The Athletic, NASCAR referred to the pair of 23XI and FRM in its lawsuit as 'an illegal cartel' and claimed that 23XI's Polk is 'representing all teams in negotiations, coordinating their conduct, and threatening teams that considered leaving the conspiracy and interfering and negatively affecting NASCAR's attempts to renew its media rights agreements.' The two teams claim in their antitrust lawsuit that NASCAR and France operate 'without transparency, have stifled competition, and control the sport of stock car racing in ways that unfairly benefit them at the expense of team owners, drivers, sponsors, partners, and fans, through the following anti-competitive practices.' The allegations made by 23XI and FRM against NASCAR include: Buying a majority of the premier racetracks that are exclusive to NASCAR races; Imposing exclusivity deals on NASCAR-sanctioned racetracks; Acquiring Automobile Racing Club of America (ARCA), the only notable stock car racing series competitor; Preventing teams from participating in any other stock car races, while also retaining ownership over Next Gen parts and cars; and Forcing teams to buy their parts from single-source suppliers chosen by NASCAR. NASCAR in its lawsuit, is requesting triple damages and the removal of 23XI and Front Row from their guaranteed starting spots in NASCAR Cup Series races if the pair continue with their lawsuit, according to The Athletic. 23XI and FRM claim that 'No other major professional sport in North America is run by a single family that enriches themselves through these kinds of unchecked monopolistic practices' Jordan commented on the antitrust lawsuit in October 2024 stating, 'Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today's action shows I'm willing to fight for a competitive market where everyone wins.' Polk referred to NASCAR as a 'dictatorship' in his comment on the lawsuit. One of the key issues cited by both racing teams are the NASCAR charters which were adopted in 2016 and recently updated in 2025. They claim NASCAR 'continually stonewalled and refused to engage constructively' during two years of attempted negotiation. Polk commented on the charter in October 2024 stating that it was 'forced on the teams with only hours' notice' and that it 'is an attempt to further marginalize the teams' voices in the sport and consolidate control and the power in the hands of the France family for their sole benefit.' Front Row's Bob Jenkins released the following statement in October 2024: 'I have been part of this racing community for 20 years and couldn't be more proud of the Front Row Motorsports team and our success. But the time has come for change. We need a more competitive and fair system where teams, drivers, and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league.' Bob Jenkins, FRM team owner The Athletic reports that NASCAR made its final offer to extend the charter agreement to 2031 in September 2024 'just days before the start of the Cup Series playoffs.' Court documents allege that NASCAR told teams that 'should they not sign the extension by a midnight deadline, the charter system would effectively be disbanded at the end of the year.' 23XI and FRM were the only two teams who did not sign the extension. The pair then filed its antitrust lawsuit a month the injunction, the court also found that the teams have established a likelihood of success on their anti-trust claims and that language in the charter agreement forces NASCAR's monopolistic power onto the teams. 'The Court finds that NASCAR possesses monopoly … power in the relevant market, which is the market for premier stock car racing teams in the United States,' the injunction reads. 'NASCAR's Cup Series is the only premier stock car racing series in the United States, and premier stock car racing is a distinct form of automobile racing with unique cars and highly specialized racing teams for which other types of motorsports like Formula 1 and IndyCar are not substitutes. Therefore, NASCAR fully controls which race teams can compete at the highest level of stock car racing. Effectively, it has a 100% market share.' 'In practical effect, the question before the court is: can a monopolist require that a party agree to release the monopolist from all claims that it is violating the antitrust laws as a condition of doing business?' The answer is, 'No.'' NASCAR appealed the ruling to the U.S. Court of Appeals and also asked for a stay of the injunction until the appeal is heard. The Athletic reports that a hearing will likely take play in mid-May 2025. The jury trial for the antitrust lawsuit is scheduled to take place on Dec. 1, 2025. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-02-2025
- Automotive
- Yahoo
NASCAR Appeals Michael Jordan, 23XI Racing Injunction Before Daytona
NASCAR on Wednesday filed a 68-page brief to the U.S. Court of Appeals for the Fourth Circuit urging the appellate court to reverse preliminary injunctions granted to 23XI Racing—owned by Michael Jordan and Denny Hamlin—and Front Row Motorsports by U.S. District Judge Kenneth D. Bell on the grounds that Bell misapplied the law and misunderstood the facts. The brief—authored by Gregory G. Garre and other attorneys from Latham & Watkins and Shumaker, Loop & Kendrick—centers Bell's rulings in December. That month the judge barred NASCAR from denying 23XI Racing and Front Row the same terms offered to charter teams, prevented NASCAR from requiring 23XI Racing and Front Row release legal claims, and allowed a purchase of Stewart-Haas Racing charters. NASCAR contends Bell's orders 'flout federal antitrust law' and 'ignore unrebutted, legally significant evidence.' The association also accuses Bell of 'forcing' NASCAR 'into contractual relationships with two motorsports organizations actively suing it, on their preferred terms.' More from NFL Bluesky Antitrust Suit Over X-clusivity Faces Tough Defense NASCAR's Revamped TV Slate Features New Streaming, TV Partners Baseball Player Fails in Attempt to Challenge NCAA Five-Year Rule 23XI Racing and Front Row sued NASCAR and CEO Jim France last year, accusing them of violating antitrust law by functioning as an illegal monopsony. The gist of the case is that NASCAR allegedly has too much control over the buying of the services of premier stock car racing teams. NASCAR is portrayed as using that control to force teams to accept unfavorable terms through its charter system. Charters guarantee teams a starting position in NASCAR-sanctioned races while limiting their capacity to compete in other circuits. Charters also require NASCAR and the teams to mutually release potential legal claims against one another. From NASCAR's vantagepoint, charters are negotiated agreements with teams that give them a 'valuable asset that can be sold for a profit.' Charters are also depicted as helping to make NASCAR popular and a reliable promotion for television networks and other media rights partners. This is because charters ensure that teams will race in scheduled events, much like PGA Tour contracts require golfers to compete for PGA Tour events. That guarantee assures networks which teams will compete, which is crucial for the selling of advertising. NASCAR says an ecosystem where charter teams compete in its races helps make the sport popular with fans and generates more revenue for NASCAR and teams. 23XI Racing and Front Row refused to sign charters last year and sued. Last November, the first judge in the case, Frank D. Whitney, denied 23XI Racing and Front Row a preliminary injunction on grounds the teams' alleged harms were speculative and unsupported. But on Dec. 11, the case was reassigned to Bell, who soon granted the two teams' injunctive relief. Bell was convinced drivers and sponsors might sever relationships with 23XI Racing and Front Row, though in granting relief, Bell arguably gave those two teams a superior arrangement with NASCAR than enjoyed by charter teams. NASCAR argues that Bell's decisions defy basic elements of law and compelled NASCAR 'to enter into rewritten Charters with the parties actively suing it, despite the absence of any meeting of the minds on key contractual terms.' The judge is also portrayed as undermining foundational rules of American sports law and longstanding precedent. Bell allegedly 'conjured from thin air a categorical ban on sports leagues including releases broad enough to encompass antitrust claims in their agreements' which 'no court of appeals' has ever endorsed. NASCAR also challenges the plaintiffs' depiction of the association as a monopsony. NASCAR stresses that the motorsports industry also includes Formula 1, the IndyCar Series, the IMSA SportsCar Championship, drag racing leagues and the Formula Drift championship series. NASCAR asserts it has 'consistently faced competition' for 'fan attention, talent and sponsors' and many of its drivers have raced in other motorsports leagues, including IndyCar, Formula 1, the U.S. Auto Club and others. NASCAR also maintains that it competes with the major sports leagues and the NCAA, noticeably underscoring that Jordan 'has held ownership stakes in MLB, NBA, and NASCAR teams, a motorcycle racing team, restaurants, and car dealerships.' NASCAR uses those points to argue that it faces substantial competition in the racing and sports industries, and that Bell 'erred by ignoring that evidence.' The judge, as NASCAR tells it, incongruously defined the market as limited to the relationship between teams and NASCAR. The brief filed by NASCAR also implies that Bell fumbled the handoff of the case from Whitney. NASCAR finds it problematic that soon thereafter Bell granted a preliminary injunction 'without holding a hearing or allowing Defendants an opportunity to respond' to a request about a charter. NASCAR also points out that Bell's order went further than 23XI Racing and Front Row sought, providing 'additional relief never even requested' in the form of ordering NASCAR to approve 23XI's purchase of a charter from Stewart Haas. NASCAR's brief presents only one side of the debate. 23XI Racing and Front Row will file an opposition brief in which they will describe Bell, who last month denied NASCAR's motion to dismiss the case, as correctly applying the law and cogently understanding the facts. It will be a while before the Fourth Circuit acts: the court is scheduled to hear oral arguments in May. In the meantime, races will continue. The Daytona 500 will take place this Sunday with 23XI Racing and Front Row scheduled to participate. Best of College Athletes as Employees: Answering 25 Key Questions
Associated Press
12-02-2025
- Automotive
- Associated Press
ICON and Gambit Technologies Unveil Game-Changing Sponsorship with Amber Balcaen for the Daytona 500
WINKLER, MB / ACCESS Newswire / February 12, 2025 / ICON, a leader in premium RV parts, and Gambit Technologies, a trailblazer in AI-driven sponsorship innovation, are thrilled to announce an innovative partnership with ARCA driver Amber Balcaen for the week of the 2025 Daytona 500. This partnership introduces the groundbreaking 'Ask Amber' AI tool-a first-of-its-kind platform that blends cutting-edge technology with the excitement of motorsports, setting a new standard for fan engagement and customer interaction. Innovation on Motorsport's Biggest Stage Gambit Technologies specializes in creating AI solutions that connect technology with human interaction. By building AI personalities people love to engage with, Gambit transforms customer conversations and humanizes digital experiences. As creators of AskEllyn, the world's first AI companion for breast cancer support, Gambit has a proven track record of innovation. Their expertise spans caregiving, legal access, research, health support, media optimization, and customer engagement, creating tools that revolutionize how users interact with brands. Learn more at . About Amber Balcaen Amber Balcaen is a professional race car driver and rising star in motorsports. She made history as the first Canadian woman to win a NASCAR-sanctioned race in the United States and achieved a career-best 6th-place finish in the 2024 ARCA season. For more information, visit or . Contact
