Criticizing NASCAR’s motion to dismiss their antitrust case as a “fantasy” filled with distortions that mask “unlawful maintenance of monopoly” as a mere “contractual dispute,” the attorney for Michael Jordan-owned 23XI Racing and Front Row Motorsports filed an opposition memorandum on Monday.
The document, signed by Jeffrey Kessler, who won the landmark NCAA v. Alston (2021) case at the Supreme Court, compares NASCAR’s actions to the NCAA’s treatment of college athletes.
Kessler argues both are “monopolists” that underpay talent, whether race car drivers or student-athletes, by offering “sub-competitive prices.”
NASCAR’s motion to dismiss characterizes the lawsuit as a “misguided attempt to dress up private business frustrations in antitrust garb.”
The organization claims 23XI Racing and Front Row Motorsports are creating unfounded legal arguments over contractual disputes and seeking favorable terms that would harm other chartered teams. NASCAR argues the case centers on standard exclusivity and noncompete terms common in sports.
Kessler disputes NASCAR’s claims, arguing in the memorandum that NASCAR’s Cup Series holds “monopsony power” over premier stock car racing teams, with an alleged 100% market share in the industry.
While acknowledging that rival teams signed charters waiving potential antitrust claims, Kessler argues these teams had no real choice and were coerced under “take-it-or-leave-it” terms.
He claims teams signed under “duress” without viable alternatives. NASCAR counters that it negotiates charter terms equitably, ensuring all teams share the same rights and obligations.
NASCAR also asserts that 23XI Racing and Front Row Motorsports are free to compete in other racing leagues or even create their own.
Although feasible for billionaire Michael Jordan, Kessler argues this misses the case’s core issue—forcing teams to accept below-market terms through monopolistic practices.
Kessler challenges NASCAR’s exclusivity provisions, noting that while they are common in leagues like the NFL or NBA—where teams are joint venture partners and players are unionized—they are uncommon for leagues “owned by a single family” with independent contractor teams. Legal challenges to similar provisions have been raised against organizations like the UFC and PGA Tour.
NASCAR and its CEO, Jim France, will respond in future filings. U.S. District Judge Kenneth D. Bell will review both sides’ arguments and may schedule a hearing for oral presentations.
