Judge Kenneth D. Bell has issued a ruling after a summary judgment hearing with NASCAR, 23XI Racing, and Front Row Motorsports. He has dismissed the counterclaim against the two teams suing NASCAR.
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NASCAR filed a counterclaim against the two teams and 23I Racing co-owner Curtis Polk in March, saying in part that Polk used "collusive behavior to extract more favorable commercial terms from NASCAR in the Charter negotiations." NASCAR said that the defendents' "cartel" harmed Cup Series competition.
In Judge Bell's ruling, he noted that the teams' boycott of a Team Owners Council meeting in 2023 did not violate the Sherman Antitrust Act. Instead, he called it a negotiation tactic.
MORE: Full ruling on NASCAR counterclaim
Judge Bell acknowledged that Polk "promoted joint negotations" over individual negotations, but he said that NASCAR did not produce any evidence showing the teams who signed the 2025 Charter Agreement "agreed to solely pursue the joint terms and refused to meaningfully negotiate in the individual team negotiations that indisputably occurred."
The judge added that NASCAR regularly pursued and participated in individual negotations with team owners during the lead-up to the new charter agreement. He also said that when NASCAR filed its counterclaim regarding this "cartel," it only sued 23XI Racing and Front Row Motorsports. NASCAR did not sue the teams who signed the Charter Agreement.
One other factor playing into Judge Bell's dismissal of the counterclaim is the economic factor. NASCAR said that it suffered "antitrust injury" as a part of the joint negotiations, but Judge Bell said in his ruling that NASCAR's allegation that it paid too much to the teams under the 2025 Charter Agreement is not "an injury to competition." He called it a private economic loss.
"We are thankful for Judge Bell's thoughtful consideration of the facts and the law, and his decision to grant Summary Judgment in my clients' favor against the NASCAR counterclaim," Jeffrey Kessler, lead attorney for 23XI and Front Row, said in a statement.
"Today's decision has only reaffirmed my clients' unwavering pursuit of a more fair and equitable sport. Their determination remains strong as we continue our efforts for a resolution that benefits everyone — teams, drivers, employees, partners, and fans."
NASCAR issued a statement responding to the ruling on Tuesday, saying, "We respect the Court's decision, though we respectfully disagree with its legal reasoning.
"Our priority remains resolving this matter quickly so all parties can focus on Championship weekend and continuing to grow the sport. Should a resolution not be reached, we intend to appeal the decision at the appropriate time."
Both statements include references to a resolution, something that did not previously appear likely. The two sides of this antitrust lawsuit spent two days in settlement conferences last week but did not bring this case to a resolution.
They then spent the following day in a summary judgment hearing with Judge Bell, after which Kessler released a statement calling NASCAR "retaliatory bullies" and saying that they would go to trial to hold NASCAR "accountable."
The situation changed, however, on Tuesday as teams prepared to head to Phoenix Raceway for championship weekend. The Athletic's Jordan Bianchi released a story indicating that a settlement could happen before the weekend.
Bianchi spoke to numerous sources throughout the industry and reported that NASCAR Commissioner Steve Phelps is "working to reach an agreement, making calls to members of both parties to settle this lawsuit in advance of the Phoenix championship race."
Bianchi added that the framework of a deal took shape during the two-day settlement conference but that talks broke down over which party would pay the legal fees incurred since October of last year, which is "close to $100 million."
If this settlement does not occur and the sides proceed to trial, the jury will have a more streamlined case to consider. The dismissal of the counterclaim means that they will only have to focus on whether NASCAR is a monopoly as 23XI Racing and Front Row Motorsports allege.
