KANSAS CITY, Kan. (AP) — Denny Hamlin stated on Saturday that he still feels quite confident about the lawsuit filed by his team, 23XI Racing, which he co-owns with former NBA star Michael Jordan, along with Front Row Motorsports, against NASCAR for alleged antitrust infractions.
Hamlin made his comments the day following when a three-judge federal appeals panel signaled
It could potentially reverse an injunction.
This enables 23XI and Front Row to compete as official teams, even as their
legal action against the stock car league
plays out in court.
“You know, people are informing me about what’s happening. I wasn’t able to catch it live or anything like that,” Hamlin stated following his qualification in the 14th position.
The race held on Sunday at Kansas Speedway
But all things considered, we’re quite confident in our case.
On October 2, the teams submitted an antitrust lawsuit against NASCAR at the court in the Western District of North Carolina. They claim that the series coerced them into agreeing to charter contracts—basically franchise arrangements—that hinder their ability to compete financially.
Those were the only two holdouts of 15 charter-holding teams that refused to sign the agreements in September.
The latest renewal of the charters extends up to 2031, aligning with the duration of the present media rights agreement. One of their primary advantages is ensuring that 36 out of the 40 positions in every NASCAR event are reserved for charter team owners.
Reversing the injunction would classify 23XI and Front Row Racing as “open teams,” which means they would need to qualify for each Cup Series event. However, there are only four available slots, and 23XI fielded four vehicles this past weekend at Kansas—driven by Bubba Wallace, Riley Herbst, Tyler Reddick, and Corey Heim—and Front Row entered three drivers: Noah Gragson, Zane Smith, and Todd Gilliland.
“As Hamlin pointed out, the judges haven’t issued any decision yet, so for now, we’re maintaining the current situation.”
NASCAR’s lawyer, Chris Yates, contended during the injunction hearing—which was approved back in December by U.S. District Judge Kenneth Bell—that this order essentially pushed the league into an undesirable partnership against their will. This situation reportedly disadvantages some teams as they receive lower revenues. Additionally, he pointed out that these same teams cannot simultaneously benefit from aspects of the charter system they are actively trying to challenge.
“There isn’t anywhere else for them to compete,” argued Jeffrey Kessler, the lawyer representing 23XI and Front Row, emphasizing that reversing the injunction could inflict significant harm on the teams, possibly leading to the departure of both drivers and sponsors.
“It would create chaos to reverse this injunction midway through the season,” Kessler stated.
A trial has been scheduled for December, and Judge Steven Agee encouraged both parties to engage in mediation—previously mandated by a lower court—with the aim of resolving their disagreement regarding the injunction. However, this appears improbable.
“We’re not planning to revise the charter,” Yates informed the judges.
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The Associated Press reporter Mike Barber from Richmond, Virginia, provided contributions for this report.
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AP auto racing:
https://apnews.com/hub/auto-racing
Dave Skretta, The Associated Press
