NASCAR Sues Michael Jordan, Slams His Racing Team as an 'Illegal Cartel'
NASCAR is accusing basketball legend and businessman Michael Jordan of helping to operate an illicit scheme in which racing teams colluded to get better terms from the car racing organization.
The lawsuit claimed that Jordan’s racing team, 23XI Racing, and fellow team Front Row Motorsports were led by Curtis Polk, a co-owner of 23XI, in developing the collusive effort, according to a Wednesday report from The New York Times.
NASCAR called the defendants “an illegal cartel.”
Polk and the teams allegedly “agreed to a scheme to pressure NASCAR to accept their collusive terms, including by engaging in media campaigns.”
They also interfered with “NASCAR’s broadcast agreement negotiations, threatening boycotts of NASCAR events and engaging in a group boycott of a NASCAR Team Owner Council Meeting.”
The lawsuit added that Polk functioned as the ringleader of the scheme by “representing all teams in negotiations, coordinating their conduct, and threatening teams that considered leaving the conspiracy.”
The teams also tried “interfering and negatively affecting NASCAR’s attempts to renew its media rights agreements,” the complaint said.
NASCAR filed the complaint as a counter to a previous lawsuit submitted by 23XI and Front Row, which alleged that the company uses “anticompetitive and exclusionary practices” in order to “enrich themselves at the expense of the premier stock car racing teams.”
The lawsuit against NASCAR also lists Jim France, the chief executive of the company and the son of NASCAR founder Bill France Sr., as a defendant.
Jeffrey Kessler, an attorney representing Front Row and 23XI, said in a statement that the NASCAR lawsuit is merely “a meritless distraction.”
He also characterized the complaint as “a desperate attempt to shift attention away from its own unlawful, monopolistic actions.”
“My clients’ lawsuit has always been about transforming NASCAR into a more competitive and fair sport for the benefit of drivers, fans, sponsors and teams because of their love of the sport,” Kessler added.
“Every major sport goes through a transition to competition when antitrust claims are asserted, and that moment has come for NASCAR.”
NASCAR has a charter system under which franchise owners have particular financial guarantees, as well as a starting position in all 36 races in the NASCAR Cup Series.
The legal disputes emerged as the charter system was due for expiration.
The lawsuit from NASCAR asks the court for triple damages.
The company wants 23XI and Front Row to lose their starting positions if they continue their litigation.
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