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12/11 10:41 CST NASCAR settles federal antitrust case filed by 2 of its teams,
one owned by NBA great Michael Jordan
NASCAR settles federal antitrust case filed by 2 of its teams, one owned by NBA
great Michael Jordan
By JENNA FRYER
AP Auto Racing Writer
CHARLOTTE, N.C. (AP) --- A federal antitrust case accusing NASCAR of being a
monopolistic bully was settled Thursday after the stock car racing series
agreed to make the charters at the heart of its business model permanent for
its teams.
The lawsuit filed by Michael Jordan's 23XI Racing and Front Row Motorsports had
shadowed NASCAR for more than a year. The retired NBA great pushed ahead,
telling the jury he felt he was one of the few who could challenge the series.
Jordan, 23XI co-owner Denny Hamlin and Front Row owner Bob Jenkings joined
NASCAR Chairman Jim France as they stood together outside the courthouse. The
group announced that that charters --- at the heart of NASCAR's revenue model
--- will be made permanent for all Cup Series teams. Both 23XI and Front Row
Motorsports, the two plaintiffs, will get them back after racing uncharted most
of this past season.
"Today's a good day," Jordan said.
The financial terms were not disclosed. An economist earlier testified 23XI and
Front Row were owed over $300 million in damages.
The settlement came on the ninth day of the trial before U.S. District Judge
Kenneth Bell, who set aside motions hearing for an hour-long sidebar. Jeffrey
Kessler, attorney for 23XI Racing and Front Row, emerged from a conference room
at the end of the hour to inform a court clerk "we're ready." Kessler then led
Jordan, Hamlin and Bob Jenkins to another room for more talks.
23XI and Front Row filed their lawsuit last year after refusing to sign
agreements on the new charter offers NASCAR presented in September 2024. Teams
had until end of day to sign the 112-page document, which guarantees access to
top-level Cup Series races and a revenue stream, and 13 of 15 organizations
reluctantly agreed. Jordan and Jenkins sued instead and raced most of the 2025
season uncharted.
Both teams said a loss in the case would have put them out of business.
"What all parties have always agreed on is a deep love for the sport and a
desire to see it fulfill its full potential," NASCAR and the plaintiffs said in
a joint statement. "This is a landmark moment, one that ensures NASCAR's
foundation is stronger, its future is brighter and its possibilities are
greater."
Bell told the jury that sometimes parties at trial have to see how the evidence
unfolds to come to the wisdom of a settlement.
"I wish we could've done this a few months ago," Bell said in court. "I believe
this is great for NASCAR. Great for the future of NASCAR. Great for the entity
of NASCAR. Great for the teams and ultimately great for the fans."
All teams felt the previous revenue-sharing agreement was unfair and two-plus
years of bitter negotiations led to NASCAR's final offer, which was described
by the teams as "take-it-or-leave it." The teams believed the new agreement
lacked all four of their key demands, most importantly the charters becoming
permanent instead of renewable.
The settlement followed eight days of testimony in which the Florida-based
France family, the founders and private owners of NASCAR, were shown to be
inflexible in making the charters permanent.
When the defense began its case Wednesday it seemed focused more on mitigating
damages than proving it did not act anticompetitively.
___
AP auto racing: https://apnews.com/hub/auto-racing
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