In an early but narrow victory for NASCAR as it defends an antitrust lawsuit brought by 23XI Racing and Front Row Motorsports, owned by Michael Jordan, a federal judge on Thursday denied the racing teams’ motion for expedited discovery.
U.S. District Judge Frank D. Whitney denied a motion that would have forced NASCAR to quickly turn over material if:
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· Agreements between NASCAR and racetracks hosting Cup Series races since January 1, 2016, that contain exclusivity provisions or other terms that limit the racetracks’ ability to host non-NASCAR racing events.
· Documents relating to the competitive aspects of NASCAR’s 2019 acquisition of International Speedway Corporation, which owned premier race tracks hosting Cup Series events.
· Documents addressing provisions in the 2016 and 2025 charter agreements that limit the ability of chartered teams to compete in non-NASCAR racing events.
· Documents discussing the impact of section 10.3 of the charter agreement.
· Documents addressing NASCAR’s decision on the negotiation methods for the 2025 charter agreement and the decision to impose a September 6, 2024 deadline for teams to sign the 2025 charter agreement.
23XI Racing and Front Row Motorsports seek these materials to strengthen their argument for a preliminary injunction that, if granted, would allow them to compete as de facto chartered teams without having signed the charter and effectively nullify the release would do as it relates to antitrust claims.
The two teams, represented by famed sports attorney Jeffrey Kessler, claim these materials are essential to their legal argument that NASCAR and its CEO, James France, are manipulating their control of leading stock racing car teams to limit economic competition. Without a preliminary injunction, the plaintiffs argue, they would suffer irreparable harm (i.e., harm that monetary damages cannot later repair).
NASCAR rejects these claims as contrary to antitrust precedent and portrays them as illogical given the way NASCAR’s business model has made the sport competitive for racing teams and attractive to fans. NASCAR also alleges that 23XI Racing and Front Row Motorsports are attempting to weaponize the pre-trial discovery process to damage business relationships and circumvent the obligations of the racing teams that signed the charter, while simultaneously obtaining the benefits of a charter.
In a six-page order obtained by SporticoWhitney identified several shortcomings in 23XI Racing and Front Row Motorsports’ demand for accelerated discovery. He wrote that while the discovery requests are portrayed as “barely tailored” and not burdensome, “this is not the case.” In that regard, Whitney noted that six of the eight sets of requested documents address “the core of the plaintiffs’ case” and that their scope is “too broad.”
Whitney also found it problematic that the plaintiffs are demanding eight years of documents, a long time frame that would place a “significant burden” on NASCAR. To add to the potential burden, Whitney, 23XI Racing and Front Row Motorsports reasoned, “seek all of this information within five days” of an expedited discovery order.
Whitney further concluded that 23XI Racing and Front Row Motorsports “apparently misconstrued” their obligation to establish that they would suffer irreparable harm if expedited discovery is not granted. The judge wrote that the plaintiffs say they need expedited discovery to “create a more complete record,” but that goal falls short of establishing irreparable harm. Whitney reasoned that 23XI Racing and Front Row Motorsports are essentially “admitting that they don’t actually require expedited discovery.”
Whitney also pointed out that 23XI Racing and Front Row Motorsports are not addressing irreparable harm in the context of “the risk of loss of evidence.” Instead, he emphasized that NASCAR says it has implemented procedures to preserve relevant materials. “This consideration,” Whitney wrote, “also weighs against granting plaintiffs’ motion.”
To be clear, the ruling only addresses 23XI Racing and Front Row Motorsports’ request for expedited discovery. It doesn’t mean that they won’t ultimately get the materials they want, that they won’t get a preliminary injunction, or that their case won’t move forward. However, it is a positive development for NASCAR as it defends its business practices against a challenge from one of the richest and most famous professional athletes in America.
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