What do 23XI and Front Row Motorsports want? That’s a question that has been reverberating in the NASCAR circles ever since both teams chose not to sign the final charter proposal last September. Instead, the teams decided to file an antitrust lawsuit, accusing the sport and its CEO, Jim France, of “unlawful monopolization of premier stock car racing in order to enrich themselves at the expense of the premier stock car racing teams.”
Almost a year has passed since then, and we’re no closer to reaching a resolution. And NASCAR commissioner Steve Phelps has revealed he’s still unsure why the sport is being sued, and what 23XI and Front Row Motorsports’ demands are, despite dragging the stock car racing series to court.
Steve Phelps brushes aside monopoly claims
The ongoing lawsuit has been a thoroughly messy affair. First, 23XI and Front Row were granted a preliminary injunction, allowing both teams to retain their charters throughout the court case. However, an appeal, requested by NASCAR, reversed the injunction by a higher court, and now both teams are on the verge of losing their charters. It’s a difficult situation to be in, as Michael Jordan and Bob Jenkins’ teams will be forced to run as ‘open’ entries, taking a significant financial hit in the process.
And for the first time since the lawsuit was brought against NASCAR, a representative from the sanctioning body, Steve Phelps, opened up about the ongoing situation. He said, “The number one thing the teams wanted was more money, which is exactly what we gave to them. We’re either gonna settle or we’re gonna go to court. Do I think we’d be willing to entertain a settlement? Yeah. To date, they have not come with anything. I don’t even know what their demands are. I don’t even know what they’re suing for.”
One of the main allegations levied against NASCAR is that the sanctioning body is using monopolistic practices in its business dealings, especially when it comes to negotiating the terms of the charter agreement presented last year. It’s a sentiment Phelps passionately disagrees with, clarifying, “There was a significant increase in revenue that the teams got – so over the period of time, I think that the increase we offered the team contract to contract was 73%. That’s a significant increase.”
HOMESTEAD, FL – NOVEMBER 18: NASCAR President Steve Phelps speaks to the media prior to the Monster Energy NASCAR Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 18, 2018 in Homestead, Florida. (Photo by Jared C. Tilton/Getty Images)
Steve Phelps’reasoning is that if NASCAR were a ‘monopoly’, they would not offer better terms, but instead go “backwards, because you have that ability to do it.” Ultimately, only two options are presented to the plaintiffs and the defendants. Settle or go to trial. As things stand, both teams have opted to go for the latter, even though recent rulings haven’t exactly gone their way. However, with the sanctioning body potentially paving the way for a settlement, could 23XI and Front Row Motorsport finally reach an agreement with the sports hierarchy? Time will tell.
NASCAR is frustrated by another injunction
The France family has ruled over NASCAR with an iron fist over the years. So, as you would probably expect, when 23XI Racing and Front Row chose to ‘rebel’ against the sport by filing a lawsuit, the move didn’t go down well with the sport’s hierarchy. They successfully appealed and overturned the preliminary injunction, but are frustrated that the plaintiffs have now filed a motion for another temporary restraining order and a new preliminary injunction that, if approved, will let them retain their charters until the court case in December.
A statement released by NASCAR read, “It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction.” It went on to say, “We have yet to receive a proposal (to resolve this litigation) from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.”
The stakes are high. Both 23XI Racing and Front Row Motorsports have three charters each, and if the injunction is not approved, six charters being available at once could result in plenty of external interest. It’s a situation the plaintiffs are trying desperately to avoid, because the damage would be done even if they win the court case in December. Millions of dollars are at stake, and it’s clear that the plaintiffs aren’t going down without a fight.
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