Federal judge denies NASCAR’s motion to dismiss antitrust case

CHARLOTTE, N.C. — A federal judge denied NASCAR’s motion to dismiss an antitrust lawsuit Front Row Motorsports and 23XI Racing brought against them.

Judge Kenneth D. Bell issued the ruling Friday, denying the motion. At the basis f the case is the teams alleging NASCAR engaged in anticompetitive behavior. In filing the motion to dismiss the case, NASCAR claimed they negotiated a fair charter agreement with the teams and have acted fairly.

“What is the actual evidence and how does it inform a correct legal conclusion? These questions cannot be determined on motions to dismiss in this action, where Plaintiffs have sufficiently alleged one or more plausible antitrust claims against Defendants within the applicable period of limitations,” the judge wrote.

The judge stated the parties must get “a full opportunity to pursue discovery of the relevant facts.” The judge called for a trial where a jury can “weigh the evidence and assess the credibility of the witnesses.” However, a trial will only happen if the parties don’t agree to settle the case – or if the court dismisses it.

According to a report by Matt Weaver of Sportsnaut, the judge outlined a timeline that would see the trial start Dec. 1.

The judge also dealt NASCAR another loss Friday. NASCAR asked the judge to require the teams to “post a bond in excess of $10 million for each car,” claiming they will be harmed by the court-ordered injunction requiring 23XI and FRM’s cars to be chartered in 2025.

23XI will field three cars in 2025. FRM will also field three cars this season.

According to the ruling, the sanctioning body stated they intended to use the bond money to promote the sport or entice involvement from new teams. However, the judge stated they didn’t provide the court with any specific plan. NASCAR allegedly sought the money to go toward legal expenses in the case – but the judge said those expenses don’t qualify as harm.

“NASCAR persuasively argued that its benefit from Plaintiffs racing as chartered teams may not be the same as received from the other chartered teams, in that Plaintiffs have not and will not be pulling their oars in the same direction as NASCAR and the other charter teams. Nonetheless, the alleged harm to NASCAR of allowing Plaintiffs to race chartered cars on the same terms as the other 30 chartered teams is presently both uncertain and unquantified,” the judge ruled.

NASCAR offered the charter agreement to 36 teams. After Front Row Motorsports and 23XI Racing didn’t sign that agreement and filed the lawsuit against NASCAR, the sanctioning body said in a motion filed in federal court that they planned to run the 2025 NASCAR Cup Series season with 32 chartered teams.

The judge wrote NASCAR can pursue reimbursement at a later time if they prove the injunction caused them monetary harm.