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NASCAR Fights Back Against 23XI Racing and Front Row Motorsports’ Expedited Discovery Request Amid Antitrust Lawsuit

Virgilio Machado by Virgilio Machado
October 17, 2024
in Motorsports
Reading Time: 3 mins read
0
NASCAR Fights Back Against 23XI Racing and Front Row Motorsports’ Expedited Discovery Request Amid Antitrust Lawsuit

Sep 1, 2024; Darlington, South Carolina, USA; NASCAR Cup Series Team 23XI owner Michael Jordan watches a video board as NASCAR Cup Series driver Bubba Wallace (23) races during the Cook Out Southern 500 at Darlington Raceway. Mandatory Credit: Jasen Vinlove-USA TODAY Sports

In a heated legal battle, NASCAR is pushing back against a motion for expedited discovery filed by 23XI Racing and Front Row Motorsports, calling the request “meritless” and a “one-sided, non-reciprocal” bid for favorable contract terms. The legal dispute stems from the two teams’ refusal to sign the 2025 Charter Agreement, and their subsequent filing of an antitrust lawsuit against the motorsport giant.

On Wednesday, NASCAR filed a 22-page response asking the court to deny the expedited discovery motion. In its filing, NASCAR accused the plaintiffs of using the lawsuit as a tool to obtain commercial agreements that were previously rejected. Furthermore, NASCAR argued that 23XI Racing and Front Row Motorsports are trying to force more favorable contract terms through the legal system.

“Plaintiffs have filed a meritless suit against NASCAR alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms,” NASCAR stated in its filing.

The dispute centers around the 2025 Charter Agreement, which 23XI Racing and Front Row Motorsports declined to sign before the deadline passed weeks ago. NASCAR, in response, has moved forward with plans for a season featuring 32 chartered teams, down from the current 36. NASCAR insists that the charter agreements are no longer available and that the plaintiffs do not need these agreements to race in the series.

In their legal filings, 23XI Racing and Front Row Motorsports revealed plans to expand by adding a third full-time chartered entry for each team in the 2025 season, with the charters expected to come from Stewart-Haas Racing, which is shutting down. The two organizations are now pushing to secure chartered status for the additional entries by requesting expedited discovery to access NASCAR’s internal documents and communications related to the 2025 Charter Agreement.

Their motion, filed on Oct. 9, seeks to gain immediate access to documents discussing NASCAR’s decision to cease negotiations with the Team Negotiating Committee and shift to individual deals with teams, as well as the reasoning behind presenting a “take-it-or-leave-it” final proposal for the 2025 Charter Agreement.

However, NASCAR’s filing claims that the plaintiffs are weaponizing the antitrust discovery process. The motorsport governing body argues that 23XI Racing and Front Row Motorsports are not in immediate danger of irreparable harm and have not narrowly tailored their requests to the issues raised in the preliminary injunction.

Furthermore, NASCAR laid out four key arguments in its defense:

  1. The plaintiffs fail to demonstrate that they will suffer irreparable harm without expedited discovery.
  2. The discovery requests are overly broad and not focused solely on the preliminary injunction.
  3. There is no risk of document destruction, as implied by the plaintiffs.
  4. The timing and procedural posture of the motion do not support an expedited discovery process.

Should the court grant the expedited discovery motion, NASCAR has asked for the discovery process to be reciprocal, limiting it to non-privileged documents directly related to the preliminary injunction issues.

The legal battle is set to intensify as both sides prepare for what could be a landmark case, testing the boundaries of NASCAR’s charter system and its dealings with teams. For 23XI Racing and Front Row Motorsports, the stakes are high, with both organizations seeking to expand and cement their future in the sport.

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