CHARLOTTE, N.C. (AP) — Retired NBA great Michael Jordan and his fellow owners of two NASCAR teams went to federal court Monday for a hearing in their antitrust fight against the stock car series over what they say is an unfair business model.
23XI Racing, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by restaurant entrepreneur Bob Jenkins, sued NASCAR and chairman Jim France in October after months of tense negotiations over NASCAR’s charter system, which is essentially a franchise model that includes revenue sharing.
The two teams say NASCAR gave all Cup Series teams a last-minute, take-it-or-leave-it offer in September that both 23XI and Front Row refused to sign. The owners contend the charter system limits competition by unfairly binding teams to the series, its tracks and its suppliers, and they called the France family and NASCAR “monopolistic bullies.”
The fight is playing out as NASCAR heads into its championship weekend, with the title-deciding race set for Sunday in Phoenix with 23XI Racing’s Tyler Reddick among the four drivers who can win.
U.S. District Judge Frank D. Whitney last week denied an expedited discovery request from 23XI and Front Row for NASCAR to produce documents prior to Monday’s preliminary injunction hearing.
“While the proposed discovery requests may help plaintiffs show a likelihood of success on the merits, they are not sufficiently narrowly tailored,” Whitney wrote.
Jordan, Hamlin and Curtis Polk of 23XI were joined by Jenkins and Front Row President Jerry Freeze for the hearing, which is crucial to how next season will proceed for the two teams.
23XI and Front Row can still compete next year but as open teams. They argue to even compete under NASCAR’s open team agreement, there is a clause that would release NASCAR from any future litigation, so both teams want an injunction to pursue their current lawsuit while they race.
The teams argue that NASCAR would not be harmed by the injunction because the series had planned to have 36 chartered teams and allowing them to compete as chartered teams while pursuing the lawsuit was maintaining the status quo.
NASCAR now says it plans to run 32 chartered teams and eight open cars (instead of four) in its 40-car field each week. 23XI and Front Row currently have two charters apiece that they did not sign, and both have deals with Stewart-Haas Racing to buy one charter each.
Those deals have not closed and NASCAR has indicated it won’t recognize the sales. NASCAR is alleging it is only honoring only the 32 charter agreements that were signed in September.
NASCAR contends the two teams don’t meet the requirements for an injunction because they can still compete as open teams and that any damages that they suffer if they prevail in the case can be covered monetarily.
