23XI and Front Row call NASCAR countersuit on antitrust claims an “act of desperation”
CHARLOTTE, N.C.
(AP) — The two teams suing NASCAR over antitrust allegations said Wednesday in a filing that a countersuit against 23XI Racing, Front Row Motorsports and Michael Jordan’s manager is “an act of desperation” and asked that it be dismissed. NASCAR’s countersuit contends that Jordan business manager Curtis Polk “willfully” violated antitrust laws by orchestrating anticompetitive collective conduct in connection with the most recent charter agreements. 23XI and Front Row were the only two organizations out of 15 that refused to sign the new agreements, which were presented to the teams last September in a takeit- or-leave-it offer 48 hours before the start of NASCAR’s playoffs.
The charters were fought for by the teams ahead of the 2016 season and twice have been extended. The latest extension is for seven years to match the current media rights deal and guarantee 36 of the 40 spots in each week’s field to the teams that hold the charters, as well as other financial incentives. 23XI — co-owned by Jordan — and Front Row refused to sign and sued, alleging NASCAR and the France family that owns the stock car series are a monopoly.
Wednesday’s filing claims that NASCAR’s counterclaim is “retaliatory” and “does not allege the facts necessary to state a claim.”
“NASCAR is using the counterclaim to engage in litigation gamesmanship, with the transparent objective of intimidating the other racing teams by threatening them with severe consequences if they support Plaintiffs’ challenge to the unlawful NASCAR monopoly,” the response says.
23XI and Front Row have requested NASCAR’s counterclaim be dismissed because it “fails at the threshold because it does not allege facts plausibly showing a contract, combination or conspiracy in restraint of trade.
“The counterclaim allegations instead show each racing team individually determining whether or not to agree to NASCAR’s demands through individual negotiations — the opposite of a conspiracy.”
The filing also defends Polk, who was specifically targeted in NASCAR’s counterclaim as the mastermind of the contentious two-year battle between the teams and the stock car series.
NASCAR claimed in its countersuit that Polk threatened a team boycott of Daytona 500 qualifying races, but the teams argued Wednesday “there is no allegation that such a threatened boycott of qualifying races ever took place.”
“None of NASCAR’s factual claims fit into the very narrow categories of blatantly anti-competitive agreements that courts summarily condemn as per se unlawful,” the teams said.