23XI Racing and Front Row Motorsports' antitrust lawsuit against NASCAR is set to start on Monday, December 1. The two Cup Series teams complained and refused to sign the updated charter system last year and started the legal fight last October. They accused the sanctioning body of unfair and anticompetitive practices that amount to a monopoly and also argued that it blocks new teams. The stock-car racing association denies the claims and defends its charter structure.
Here are the main details to know before the trial.
23XI, FRM vs NASCAR antitrust trial
Presiding judge
Kenneth D. Bell, a judge of the United States District Court for the Western District of North Carolina, will oversee the trial.
Judge Bell granted a preliminary injunction that temporarily treated 23XI and FRM as chartered teams last December. But the appeal court overturned that injunction in June.
Bell also recently dismissed NASCAR's counterclaim against the teams and ordered high-profile depositions of Roger Penske and Rick Hendrick. He ruled that the market for the lawsuit is "premier stock-car racing," which also helps the plaintiffs' (23XI and FRM) case.
Lawyers
The teams hired leading sports antitrust attorney Jeffrey A. Kessler of Winston & Strawn to lead their case.
On the other hand, NASCAR decided to defend itself with its in-house and outside counsel. Its team is led by partners at Latham & Watkins, with Chris Yates among the trial attorneys named in filings.
Trial length
The courtroom battle is expected to last about ten business days over two weeks.
The trial will begin next Monday and move through Friday in its first week, then continue Monday through Friday in its second week. However, after a verdict, the losing side is expected to appeal, which would extend the dispute for months or longer.
Jury selection
The jury selection for the trial will also start on December 1.
Exhibit lists
Both sides have prepared large exhibit lists. NASCAR has submitted about 961 exhibits that include photos of 23XI and its co-owner, Michael Jordan's assets. The plaintiffs listed around 858 exhibits, including documents of NASCAR CEO Jim France's tax statements and other financial records.
Witness lists
We only know that Hendrick and Penske will testify for NASCAR and that its witness list has 28 people, including other team owners and current and former executives. Meanwhile, the teams have 19 witnesses, including Jordan, that they expect to testify at trial.
But the full witness lists are not public.
Possible settlement
Both parties are open to a resolution, but settlement talks have been unfruitful so far. Many in the industry expect the parties to reach a negotiated deal before a full jury verdict, given the risks and costs for all parties.
If they reach a settlement, the trial may not move forward. If not, the jury will decide whether the charter system violates antitrust laws.
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