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By Lydia Mee
Sports Contributing Writer
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The recent legal turmoil in NASCAR has taken a turn as NASCAR lodged major allegations against Curtis Polk, the investor in 23XI Racing.
This action arises amidst a motion by NASCAR to dismiss an antitrust lawsuit initiated by 23XI Racing and Front Row Motorsports. The lawsuit, filed in October, has triggered a complex dispute centered around dissatisfaction with NASCAR's charter system and revenue distribution.
The drama surrounding the antitrust lawsuit began with 23XI Racing and Front Row Motorsports's strong discontent with NASCAR's final charter proposal, introduced at the Atlanta Motor Speedway in September. The teams are part of the 15 Cup Series teams, yet were the only ones to reject the deal.
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This set the stage for NASCAR to attribute allegations of organizing boycotts and negative media campaigns to Polk. Furthermore, NASCAR has accused Polk of coercing other team owners to resist the sport's governance framework.
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Fox Sports NASCAR reporter Bob Pockrass shared to social media:
"NASCAR answer to lawsuit alleges 23XI co-owner Curtis Polk helped devise strategies [that] included 'boycotts and potential boycotts of NASCAR events, negative media campaign to affect the media rights negotiations and threats/coercion to other team owners to 'not break ranks.'"
Curtis Polk, co-investor in the team co-founded by NBA legend Michael Jordan and NASCAR driver Denny Hamlin, has openly voiced his dissatisfaction with NASCAR's financial model.
Initiated in 2016, the charter system was intended to provide teams guaranteed entry and stability in the racing series while maintaining a share of revenue. The charter proposal that sparked the lawsuit gave teams a tight deadline by September 6 to decide on future charters, a move not welcomed by 23XI Racing and Front Row Motorsports. Displeased, these teams refrained from signing the agreement, prompting the antitrust lawsuit as a recourse.
NASCAR's latest legal response paints the lawsuit as mere theatrics rather than genuine legal grievance. The racing authority deems it an inappropriate use of antitrust claims:
"Plaintiffs' Complaint is a misguided attempt to dress up private business frustrations in antitrust garb," the sanctioning body said.
"Plaintiffs bring claims barred by the statute of limitations and laches; they fail to plead any reduction in competition, meaning they do not have the required antitrust injury to establish antitrust standing; and they aim to renegotiate contractual terms rather than address genuine anticompetitive behavior... claims should be dismissed."
As per the latest filing, NASCAR has requested that the lawsuit be dismissed by the court. 23XI Racing and Front Row Motorsports now has until December 16 to respond.
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