In an early but narrow victory for NASCAR as it defends an antitrust lawsuit brought by Michael Jordan-owned 23XI Racing and Front Row Motorsports, a federal judge Thursday denied the race teams’ motion for expedited discovery.
U.S. District Judge Frank D. Whitney rejected a motion that would have compelled NASCAR to quickly turn over such materials as:
More from Sportico.com
· Agreements between NASCAR and racetracks that have hosted Cup Series races since Jan. 1, 2016, which contain exclusivity provisions or other terms restricting the ability of the racetracks to host non-NASCAR racing events.
· Documents pertaining to the competitive aspects of NASCAR’s 2019 acquisition of International Speedway Corporation, which owned top-tier racetracks that host Cup Series events.
· Documents that address provisions in the 2016 and 2025 charter agreements, which limit the ability of chartered teams to compete in non-NASCAR racing events.
· Documents that discuss the release of claims (i.e., ability to sue) impact of Section 10.3 of the charter agreement.
· Documents that address NASCAR’s decision on negotiation methods for the 2025 charter agreement and its decision to impose a Sept. 6, 2024, deadline for teams to sign the 2025 charter agreement.
23XI Racing and Front Row Motorsports seek these materials to boost 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 would effectively nullify the release as it pertains to antitrust claims.
The two teams, represented by famed sports attorney Jeffrey Kessler, maintain these materials are essential to their legal argument that NASCAR and its CEO, James France, are manipulating their control over premier stock racing car teams to constrain economic competition. Absent a preliminary injunction, the plaintiffs contend, they’d suffer irreparable harm (i.e., harm that monetary damages can’t later remedy).
NASCAR rejects those assertions as inconsistent with antitrust precedent and portrays them as illogical given how NASCAR’s business model has made the sport competitive for race teams and appealing to fans. NASCAR also contends the 23XI Racing and Front Row Motorsports are trying to weaponize the pretrial discovery process to damage its business relationships and to skirt the obligations of the racing teams that signed the charter while obtaining the benefits of a charter.
In a six-page order obtained by Sportico, Whitney identified several flaws with 23XI Racing and Front Row Motorsports’ demand for expedited discovery. He wrote that while the discovery requests are depicted as “narrowly tailored” and non-burdensome, “that is not the case.” To that point, Whitney noted that six of eight sets for requested documents go to “the crux of plaintiffs’ case” and their scope is “overly broad.”
Whitney also found it problematic that the plaintiffs demand eight years of documents, an elongated time frame that would place a “significant burden” on NASCAR. Making the potential burden even more onerous, Whitney reasoned, 23XI Racing and Front Row Motorsports “seek all of this information within five days” of an order granting expedited discovery.
Whitney further concluded that 23XI Racing and Front Row Motorsports “seemingly misinterpret” their obligation to establish that they’d suffer irreparable harm unless expedited discovery is granted. The judge wrote the plaintiffs say they need expedited discovery to “create a more fulsome record” but that objective falls short of establishing irreparable harm. Whitney reasoned 23XI Racing and Front Row Motorsports effectively “concede that they do not actually require expedited discovery.”
Whitney also pointed out 23XI Racing and Front Row Motorsports do not address irreparable harm in the context of “the risk of loss of evidence.” In contrast, he highlighted, 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 concerns 23XI Racing and Front Row Motorsports’ demand for expedited discovery. It does not mean they won’t eventually obtain the desired materials, that they won’t obtain a preliminary injunction or that their case won’t advance. However, it’s a positive development for NASCAR as it defends its business practices from a challenge brought by one of the most wealthy and famous pro athletes in America.
Best of Sportico.com
Sign up for Sportico’s Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
