23XI Racing, et al. v. National Association for Stock Car Auto Racing LLC, et al.

Analysis Group was retained by Winston & Strawn on behalf of 23XI Racing and Front Row Motorsports, the plaintiffs in an antitrust litigation against the National Association for Stock Car Auto Racing (NASCAR). Front Row Motorsports and 23XI Racing are both stock car racing teams; Front Row Motorsports is owned by entrepreneur Bob Jenkins, and 23XI Racing is co-owned by retired basketball star Michael Jordan and decorated stock car driver Denny Hamlin. The two teams alleged that NASCAR took anticompetitive actions in the premier stock car racing market, including acquiring racetracks and imposing restrictive agreements that prevented the tracks from hosting non-NASCAR events; requiring teams to use proprietary cars – which stayed under NASCAR ownership – and only allowing car parts to be bought from NASCAR-approved suppliers; and imposing non-compete clauses on teams and team owners.

An Analysis Group team led by Managing Principal Brad Rice, Vice Presidents Ahmer Nabi and Kristof Zetenyi, and Managers Diego Focanti and Neal Tan supported affiliated expert Edward Snyder, who filed multiple expert reports and testified at deposition and trial on liability and damages issues. Professor Snyder conducted an industry analysis, analyzed NASCAR’s alleged anticompetitive conduct, identified how the market for premier stock car racing teams would operate absent NASCAR’s actions, and estimated damages to the plaintiffs. He opined that as early as 2015, NASCAR allegedly created barriers to entry by preventing potential competitors from obtaining venues, teams, and cars. He also opined that NASCAR Cup Series teams were compensated below a competitive market rate. A second Analysis Group team led by Dr. Rice, Vice Presidents Jaclyn Cotton, Ali Dahir, and Hadrien Vasdeboncoeur, and Manager Christopher Lako supported Managing Principal Maureen Chakraborty, who filed an expert report and testified at deposition, rebutting NASCAR’s claim that it would have been insolvent had it needed to pay the increased revenue shares to teams.

After eight days of testimony, a mid-trial settlement was reached in the US District Court for the Western District of North Carolina. According to a joint statement from NASCAR, 23XI, and Front Row Racing, NASCAR will amend existing charter agreements to reflect the updated terms as well as provide for an “evergreen” charter. Winston & Strawn released a statement saying that the settlement “delivers long-term structural stability for all NASCAR Cup Series teams, and creates the conditions for meaningful competitive and commercial growth across the sport.”