Federal Judge Denies NASCAR Teams' Charter Request Amid Antitrust Legal Battle

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08/11/2024 22h46

### Judge Denies NASCAR Teams' Charter Motion in Antitrust Legal Battle

A federal judge has declined a request by two NASCAR teams to be recognized as chartered entities during their ongoing antitrust lawsuit against NASCAR and its chairman, Jim France. The teams, including one owned by NBA Hall-of-Famer Michael Jordan, sought this status as they vie for a more equitable system in the sport.

The ruling was signed by Judge Frank Whitney of the United States District Court of Western North Carolina, coinciding with NASCAR’s "State of the Sport" address at Phoenix Raceway. NASCAR President Steve Phelps, while addressing the media, emphasized that negotiations regarding charters would not be discussed publicly. Phelps stated, "We are not going to negotiate in the media about charters, ever."

NASCAR announced that 32 out of 36 charters were extended, with Phelps noting that starting in 2025, race teams would be the largest beneficiaries of NASCAR's media deal due to financial restructuring. This financial revision is aimed at stabilizing teams that were previously struggling financially.

The decision arrived just before the first practice session of the championship weekend, impacting teams like Tyler Reddick’s 23XI Racing, owned by Michael Jordan. NASCAR executives, informed of the ruling during the event, refrained from commenting on the injunction.

Jeffrey Kessler, representing the plaintiffs, indicated plans to appeal the decision. Despite the setback, Kessler expressed satisfaction with the court's expedited schedule for the case. He highlighted the plaintiffs' commitment to challenging NASCAR's current system, which they argue is unjust and monopolistic.

The dispute centers on NASCAR’s charter agreement, which 23XI Racing and Front Row Motorsports declined in September. The charter, the result of over two years of negotiations, was signed by 13 out of 15 organizations. NASCAR revoked the offers to the two dissenting teams, whose current charters soon expire, relegating them to operate as "open" teams without guaranteed revenue and race participation.

The teams sought to maintain the status quo as their lawsuit progresses, challenging a clause that bars legal action against NASCAR under the new charters set to begin in 2025. However, Judge Whitney found that Kessler did not sufficiently prove that the teams would face irreparable harm without the injunction, leading to the motion's denial.

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