NASCAR submitted a brief on Friday asking the U.S. Court of Appeals for the Fourth Circuit to overturn the preliminary injunctions issued to Front Row Motorsports and 23XI Racing, which is controlled by Michael Jordan and Denny Hamlin. Despite arguing that the 2024 charter agreement is illegal under antitrust law, NASCAR argues in the appeal that 23XI and Front Row requested and were granted injunctions requiring them to abide by the deal. U.S. District Judge Kenneth D. Bell, according to NASCAR, misapplied antitrust rules and presented the release of claims as normal business procedure rather than anti-competitive behavior. According to case law, NASCAR maintained that companies are free to select the terms and conditions of their contracts, and that it is up to the teams to decide whether to accept or reject those terms.
In response to the appeal, NASCAR continued to defend limited non-compete agreements and exclusive agreements with racetracks, highlighting their significance for media rights and cost control and uniformity for race operations. In contrast to antitrust trials involving sportsmen constrained by monopolistic conditions, NASCAR portrayed 23XI Racing and Front Row Motorsports as investments made by businesspeople like Jordan. In the appeal, NASCAR cited significant turnover and the requirement for ongoing investment to explain why it is competitive in luring money, fans, and owners. In court documents, 23XI and Front Row have argued that NASCAR’s commercial methods are anticompetitive and monopolistic, depriving teams of a fair shot.
