A federal judge on Thursday denied the race team ‘ action for accelerated finding in an early but ultimately decisive victory for NASCAR as it defends an antitrust lawsuit brought by Michael Jordan-owned 23XI Racing and Front Row Motorsports.
A movement that would have required NASCAR to turn over such things as:
Partnerships between NASCAR and fairgrounds that have hosted Cup Series ethnicities since January 1, 2016, that contain luxury terms or other restrictions on the skill of the racetracks to hold non-NASCAR racing events.
· Records pertaining to the dynamic aspects of NASCAR’s 2019 merger of International Speedway Corporation, which owned top-tier racing that number Cup Series activities.
· Records that target measures in the 2016 and 2025 contract agreements, which limit the ability of certified teams to compete in non-NASCAR sporting events.
· Records that discuss the launch of says ( i. e., ability to sue ) impact of Section 10.3 of the contract agreement.
· Documents that address NASCAR’s judgement on bargaining methods for the 2025 contract partnership and its decision to impose a Sept. 6, 2024, date for teams to mark the 2025 contract agreement.
If granted, this would enable them to engage as de facto certified teams without signing the contract, which would essentially invalidate the launch as it pertains to competitive claims, and 23XI Racing and Front Row Motorsports seek these materials to support their discussion for a preliminary injunction.
The two teams, who are represented by well-known sports lawyer Jeffrey Kessler, argue that the two organizations ‘ legal arguments about how NASCAR and its CEO, James France, are stifling their ability to control top stock racing car teams to stifle economic competition are unwavering. Absent a preliminary injunction, the plaintiffs contend, they’d suffer irreparable harm ( i. e., harm that monetary damages ca n’t later remedy ).
Given how NASCAR’s business model has made the sport competitive for race teams and appealing to fans, NASCAR rejects those claims as incompatible with antitrust precedent and labels them as illogical. The 23XI Racing and Front Row Motorsports are also accused of trying to sabotage the pretrial discovery process while obtaining the advantages of a charter in exchange for damaging its business relationships.
In a six-page order obtained by Sportico, Whitney identified several flaws with 23XI Racing and Front Row Motorsports ‘ demand for expedited discovery. He wrote that while the discovery requests are depicted as “narrowly tailored” and non-burdensome,” that is not the case”. Whitney noted that six of the eight sets of requested documents “go to the heart of the plaintiffs ‘ case” and are “overly broad” in scope.
Whitney also found it troubling that the plaintiffs want eight years of legal documentation, a lengthier time frame that would “impose a significant burden” on NASCAR. According to Whitney, 23XI Racing and Front Row Motorsports” seek all of this information within five days” of an order granting expedited discovery, adding to the potential burden.
Additionally, Whitney came to the conclusion that 23XI Racing and Front Row Motorsports” seemingly misinterpret” their duty to prove that they would suffer irreparable harm unless prompt discovery is granted. The plaintiffs claim that they require” a more fulsome record,” but the judge’s goal does not reach irreparable harm. According to Whitney, 23XI Racing and Front Row Motorsports effectively” conceive that they do not actually require expedited discovery.”
Whitney also made a point that Front Row Motorsports and 23XI Racing do not address” the risk of loss of evidence” in the context of irreparable harm. In contrast, he highlighted, NASCAR says it has implemented procedures to preserve relevant materials. ” This consideration”, Whitney wrote, “also weighs against granting plaintiffs ‘ motion”.
To be clear, the ruling only concerns 23XI Racing and Front Row Motorsports ‘ demand for expedited discovery. It does not mean they wo n’t eventually obtain the desired materials, that they wo n’t obtain a preliminary injunction or that their case wo n’t advance. It’s a positive development for NASCAR because it faces opposition from one of the most wealthy and well-known professional athletes in America.