CHARLOTTE, N.C. (AP) — NASCAR and two of its teams returned to court Thursday after two failed days of mediation and resumed their bitter antitrust fight with a hearing that included team owner Michael Jordan laughing in disbelief at some of the testimony as the two sides hurtle toward a trial.
“Today’s hearing confirmed the facts of NASCAR’s monopolistic practices and showed NASCAR for who they are — retaliatory bullies who would rather focus on personal
attacks and distract from the facts,” Jeffrey Kessler, who represents the two teams, said afterward. “My clients have never been more united and committed to ensuring a fair and competitive sport for all teams, partners, drivers and fans. We’re going to trial to hold NASCAR accountable.”
The lawsuit was filed a year ago by 23XI Racing, co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Bob Jenkins-owned Front Row Racing. They are the only two organizations out of 15 to refuse to sign extensions for new charter agreements following more than two years of negotiations. Charters are at the heart of NASCAR’s business model, guaranteeing revenue and access to weekly races, and without them both teams say they will almost surely go out of business.
Other teams have called for a settlement to clear the air and move the stock car series forward, but three mediation sessions have apparently gone nowhere and the hearing laid bare how far apart they are. The trial is scheduled for Dec. 1.
U.S. District Judge Kenneth Bell and Jeffrey Mishkin, a former executive vice president and chief legal officer of the NBA, both participated in mediation Monday and Tuesday and Bell opened the session by thanking both sides for working in good faith during the sessions. NASCAR wants Bell to throw the lawsuit out and the hearing focused on the series' bid to narrow the scope of damages the two teams say they are owed.
NASCAR has accused 23XI and FRM of manipulating other teams and conducting themselves with “classic cartel behavior, ultimately because they received less than they would have” under charter extensions signed late last year. It struggled to make those arguments Thursday.
NASCAR repeatedly insisted that teams are free to compete in both IndyCar and F1, failing to disclose that entry into F1 is nearly impossible and the financials of IndyCar are simply not even close to the value of competing in the stock car series. Kessler likened a NASCAR move to IndyCar to a Major League Baseball team moving to the minors.
“Experts found that the (IndyCar) prize money and TV ratings were too low to make them a minor league team,” Kessler argued. “Michael Jordan, if you put a gun to his head and said you have to join IndyCar, it better be a pretty big gun.”
NASCAR also mischaracterized Chip Ganassi Racing's sale of its NASCAR team to Trackhouse Racing ahead of the 2021 season as an opportunity for Ganassi — whose name was repeatedly mispronounced by NASCAR attorney Christopher Yates — to reinvest in IndyCar and expand that program to four cars. Ganassi has long run three to four cars in IndyCar and for more than three decades has been considered one of the top two teams in IndyCar.
Jordan multiple times laughed and smiled at NASCAR's claims, and at one point Hamlin and Jenkins vehemently shook their heads at NASCAR’s assertion that it pays its teams a higher percentage of revenue than F1 does to its teams. Jordan did not speak with reporters afterward.
The original charters lasted from 2016 through 2020 and were automatically renewed to continue through Dec. 31, 2024. NASCAR contends they have added more than $1 billion in equity for its teams but owners have pushed for changes.
23XI and FRM initially won a preliminary injunction to be recognized as chartered teams this season while the case played out, but that was overturned and the combined six cars have competed as “open” teams as the season nears its season finale Nov. 2.
Kessler argued that damages in the case should date to the 2021 season because of 28 exclusionary items he says prevent NASCAR teams from competing in any motorsports series that closely resembles their version of stock car racing. NASCAR conceded that there was at least one exclusionary item in that charter agreement that began in 2021.
Bell was supposed to hear testimony from expert witnesses but scheduled two November court dates, two weeks after Hamlin will race for the Cup Series title in suburban Phoenix.
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