NASCAR president Steve Phelps has told 23XI Racing that “NASCAR has made several concessions and compromises” while negotiating the 2025 Charter Agreement, in a letter signed by Phelps to the organization last month.
The letter was part of the exhibits released Wednesday when a preliminary injunction was filed by 23XI Racing and Front Row Motorsports. 23XI and FRM are seeking to race as charter teams in 2025 as the legal process plays out, but without giving up their antitrust claims.
Phelps wrote that:
– NASCAR agreed to meet well in advance of the timeline outlined in the existing charter agreement to begin good faith renewal obligations
– NASCAR agreed to extend the term length beyond the current media rights agreement
– NASCAR agreed to renewal right protections
– NASCAR created a team advisory committee to solicit additional input from the teams on major strategic decisions for the industry
– NASCAR absorbed all costs of hosting and maintaining the team website on NASCAR’s platform
– NASCAR lowered the transfer fee from the initial proposal
– NASCAR waived the debt limits, increased the amount of private equity participation, and worked with teams around the transfer language
– NASCAR agreed to increase the financial position of the teams, making them the largest beneficiary of the media revenues to the financial detriment of other industry stakeholders.
The correspondence is the only insight into NASCAR’s approach to the matter as they have not issued a public statement on the lawsuit. 23XI and Front Row are represented by Jeffrey Kessler of Winston & Strawn while NASCAR is represented by Chris Yates of Latham & Yates.
— Racer —
AND: The antitrust lawsuit brought against NASCAR by 23XI Racing and Front Row Motorsports now has lawyers on both sides.
Representing the teams is Jeffrey Kessler of Winston and Strawn, who famously secured name, image and likeness (NIL) rights for NCAA athletes and won equal pay rights for the United States Women’s National Soccer Team and he will argue his case opposed by Chris Yates of Latham & Watkins.
Yates represented the Ultimate Fighting Championship in a class action lawsuit brought forth by over 1,000 fighters who claimed the MMA promotion violated antitrust laws. That case reached a $375 million settlement.
He represents Fanatics, who Panini has sued over an allegation that it is engaging in anti-competitive conduct through its long-term exclusive licensing deals with top leagues and athletes, following in acquisition of competitor Toops and manufacturer GC Packaging, LLC while also ‘raiding’ key Panini employee groups.
— Sportsnaut —