Big win for 23XI, FRM against NASCAR after Judge Bell's breakthrough judgment

23XI Racing and FRM have gained an upper hand in their antitrust lawsuit against NASCAR. The scales have tipped in favour of the teams after Judge Bell granted their summary motion, which argues NASCAR operates under its own 'premier stock racing' category.

When the teams initially applied for summary motion, the goal was to prove that a typical NASCAR Cup Series team can't jump ship and move to other motorsports. Moreover, NASCAR owns the intellectual property for the Next Gen car. According to 23XI, this places uneven power over the sanctioning body to pursue its interests without much resistance.

The two teams allege that this is how NASCAR got the new charter deal signed with lower payouts. Financial records revealed over the discovery process have further proved this point, as the teams apparently receive a meagre $141,000 per race, while drivers earn a lot less if they're placed 25th and below.

NASCAR analyst Bob Pockrass reported on Judge Bell's ruling and wrote,

"Big 23XI / Front Row win today -- Judge Bell has granted summary judgment on market definition of "premier stock-car racing" and that NASCAR has power in that market -- trial will be focused on whether NASCAR unlawfully exercised its power in that market."

Pockrass further added:

"What does this mean? It means that the argument that the teams could go and race in other series or own teams in other sports is moot."

NASCAR, on its part, shared its displeasure with the ruling and maintained that it intends to argue against the alleged monopolistic practices. If the National Series loses against the two teams, the charter deal or the charters themselves will likely face changes.

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Judge outlines reason behind ruling in favour of 23XI and FRM

Bob Pockrass also shared Judge Bell's rationale for dismissing NASCAR's counterclaim. The key factor is that there's no evidence for a multi-disciplinary existence of a NASCAR team across other motorsports.

The court's judgment read:

"In opposing Plaintiffs' relevant market, NASCAR now contends that the same motorsports that could not supply racing teams to the Cup Series are suddenly readily available substitutes for the Cup Series teams like Plaintiffs to sell their services. Not only is it illogical, but there is no record evidence that racing teams in the various motorsports can only move from NASCAR to another motorsport but not vice-versa."

Judge Bell's reasoning on rejecting NASCAR's counterclaim. - Source: X/Bobpockrass

Previous findings revealed NASCAR’s stance on the charter agreement, showing that the deals were presented in a strict take-it-or-leave-it manner. Despite the accusations, however, NASCAR also has multiple team owners like Joe Gibbs, Rick Hendrick, Roger Penske and Richard Childress as key witnesses. They'd all signed letters of declaration backing the charter system.

23XI Racing and Front Row Motorsports currently contest as open teams after losing their preliminary injunction against NASCAR. The teams stand to lose their charters permanently if the December trial doesn't go their way.

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Edited by Vignesh Kanna