October 1st brought more court filings in the antitrust lawsuit between 23XI Racing and Front Row Motorsports versus NASCAR. This week revolved around the teams’ request for a summary judgment.
That means the teams have asked the court to decide a portion of the case without going to trial. Specifically, the teams would like the court to issue a judgment on NASCAR’s counterclaim levied against the teams on May 8.
Here’s a breakdown of what happened this week.
- To kick off the week, both the teams and NASCAR submitted more procedural requests to file upcoming items and materials under seal. These are in relation to the counterclaim NASCAR made against the teams and the teams’ request for a summary judgment.
- On Oct. 2 (Thurs.), the teams filed their motion for partial summary judgment.
- The teams hope that the judge would agree with their definition of ‘premier stock car racing’ and that NASCAR is all alone in its control over the division of racing.
- The teams looked to Formula 1 and IndyCar, pointing out that they “are not substitute purchasers of these specific stock car racing services,” even adding that “NASCAR did not consider them competitors to stock car races.”This argument attempts to show that the teams cannot simply exit NASCAR and leave for a series in a more favorable market position, because NASCAR exists alone in its own unique market.
- By showing that there are no other competitors within the same market as NASCAR, the teams are attempting to prove that NASCAR has monopsony power.
- Whereas a monopoly means there is one producer of an entire supply, a monopsony is when there is only one buyer of a supply. Like a monopoly, a monopsony causes an imbalance of power, namely, allowing the singular buyer to create a high barrier to entry into the market.
- To summarize, NASCAR’s counterclaim against the teams alleged that the teams’ collusion caused “an unreasonable restraint of trade in the market for entry.” The teams are asking for a pretrial ruling that NASCAR is the only buyer within said market, making their conduct unreasonable.
- Additionally, the teams requested that Steve O’Donnell’s testimony as an expert witness be excluded.
- The teams in part claimed NASCAR “waited so late to spring O’Donnell as a surprise expert despite knowing he would be a key fact witness at trial since the outset of this case.”
- The teams also say this “gamesmanship” hurt their opportunity to prepare with cross-examination and proper rebuttal.
- The motion to exclude was granted on Oct. 2.
- The teams were also successful in another motion requesting the exclusion of the testimony from Paul K. Meyer, adding that his opinions are “unreliable” and depend on “assumptions that are disconnected from the factual record.”
- Late on Friday (Oct. 3) night, NASCAR filed its own motion for summary judgment
- In part, NASCAR alleges that many of the points the teams are attempting to use as evidence occurred more than four years ago, which in turn means that they missed their opportunity to use that material against NASCAR in a lawsuit.
- NASCAR also argues that the “economic power derived from contractual agreements … has nothing to do with market power,” as both sides debate over the market definition and the way their side relates to the market.
- In a massive string of exhibits attached, the majority of the remaining team owners submitted statements that proved the importance of the Charters in the long term.
- The list of owners consists of Rick Hendrick, Joe Gibbs, Richard Childress, Roger Penske, Brad Keselowski, Jon Wood, Rick Ware, Carl Long, BJ McLeod, Gordon Smith (Hyak Motorsports majority owner), and Cal Wells (LEGACY MOTOR CLUB CEO). It also includes portions of the lawsuit between Rick Ware Racing and LEGACY MOTOR CLUB.
Caleb began sports writing in 2023 with The Liberty Champion, where he officially covered his first NASCAR race at Richmond in the spring. While there, Caleb met some of the guys from Frontstretch, and he joined the video editing team after graduating from Liberty University with degrees in Strategic Communications and Sports Journalism. Caleb currently work full-time as a Multi-Media Journalist with LEX 18 News in Lexington, Kentucky and contributes to Frontstretch with writing and video editing. He's also behind-the-scenes or on camera for the Happy Hour Podcast, live every Tuesday night at 7:30!
Hope 23/11 has to fold. If not for nascar denny Hamlin would be mixing paint at the home depot. Talk about biting the hand that feeds you.
I actually hope the opposite. Nascar has done some pretty underhanded and nasty things to these teams for many years. Manipulating races on the track to get their desired outcome. Off the track, blackballing drivers (Robbie Gordon, Carl Long, Jeremy Mayfield) and essentially bullying teams into doing what they want. I’m glad someone is finally standing up to them and hope they win so they are forced to make some major changes.
Agreed, Steve. NASCAR has a long history of ruling with an iron fist, and not in the name of fair or good competition.
There is plenty of information indicating Hendrick, Gibbs, etc. were not at all happy with the most recent charter agreement, but felt they had no choice but to fall in line. NASCAR controls most oval tracks, and required the teams to sign a contract which includes a strict non-compete clause. Basically, you’ll race when we tell you to, where we tell you to, and if you say anything negative about it, we’ll fine or otherwise sanction you.
If you want to start a competing series, good luck with that. You’ll lose all your NASCAR teams, and you’ll have no ovals (and very few road courses) which will host your events.
NASCAR is a monopoly, pure and simple. It’s strange to me how many have taken their side in the court of public opinion. I’d bet nearly all of them would see it differently, if their job was held hostage by what amounts to a business dictatorship.
The teams outsmarted themselves. They wanted charters to ensure positions on the grid, helping with sponsorship. They wanted to ensure they’d always have a seat at the table. Problem is, they got the table, but it’s the same table the kids use at holidays. NASCAR has used the charters to exert even more control over the teams. Be careful what you wish for, folks!