Judge sides with Michael Jordan’s team, rules NASCAR has ‘monopoly over stock car racing’

23XI Racing and Front Row Motorsports alliance have won the first part of the monopoly lawsuit against NASCAR.

Judge sides with Michael Jordan’s team, rules NASCAR has ‘monopoly over stock car racing’

Denny Hamlin and Michael Jordan (Via IMAGO)

The saga over the federal class action lawsuit that was filed against NASCAR and the France family, by 23XI Racing and Front Row Motorsports has taken a new twist. The US District court has made the first ruling on the case, and has sided with the 23XI-FRM coalition. The verdict on the injunction appeal is also set to favor the alliance.

In the verdict, Judge Kenneth Bell asserted that NASCAR possesses monopoly over the stock car racing market in the United States. He pointed out that them being the only top tier stock car racing driver, gives them a distinct advantage.

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The Court finds that NASCAR possesses monopoly/monopsony power in the relevant market, which is the market for premier stock car racing teams in the United States. NASCAR’s Cup Series is the only premier stock car racing series in the United States and premier stock car racing is a distinct form of automobile racing…

Judge Kenneth Bell said in a ruling.

He asserted that the unique cars and highly specialized racing teams, makes the series different from rival motorsports entertaining events like Formula 1 and IndyCar. This distinction has given them 100% market share and monopoly over the sport.

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With unique cars and highly specialized racing teams for which other types of motorsports like Formula 1 and IndyCar are not substitutes. Therefore, NASCAR fully controls which race teams can compete at the highest level of stock car racing – effectively, it has a 100% market share.

Kenneth Bell added.
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Judge reveals the main reason behind his ruling

In the same ruling, Judge Bell revealed 23XI Racing was set to lose star driver Bubba Wallace, if they were denied the injunction and he took it as immediate harm that required protection from. This made the judge to rule in favor of the 23XI-FRM alliance.

Bootie Barker and Bubba Wallace
Bootie Barker and Bubba Wallace, image via Imagn

The ‘present prospect’ of the loss of star drivers constitutes irreparable harm that ‘cannot fully be rectified by the final judgment after trial,’ …These are changed circumstances that the court finds have moved Plaintiffs’ speculative to present and immediate.

Kenneth Bell said.

The ruling also revealed that 23XI Racing and FRM would have lost their primary sponsors if they are to race as open teams. It would be interesting to see how NASCAR would react to this loss in the court as well as outside.

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