New ruling clarifies market definition in 23XI/FRM lawsuit against NASCAR

Another new development in the ongoing antitrust lawsuit by 23XI and Front Row Motorsports against NASCAR could push things closer to a settlement. A ruling Tuesday provided a clear market definition of “premier stock-car racing,” a huge point of contention in the case.

According to FOX Sports’ Bob Pockrass, Judge Kenneth Bell granted summary judgment on the market definition of “premier stock-car racing.” Effectively, what that means is that IndyCar and F1 cannot be considered substitute markets had teams not agreed to NASCAR’s terms.

Therefore, the scope of the claim by 23XI and FRM is much tightly defined, pushing NASCAR closer to fitting the definition of a true monopoly — though that is something a jury will ultimately determine, should the case continue to proceed to trial. That is a huge point the teams are arguing in the anti-trust case.

The Athletic’s Jeff Gluck reacted to the news from Pockrass on Tuesday evening. He wrote the following on Twitter:

“Even more urgency for NASCAR to find a way to settle the case after this ruling today,” Gluck wrote. “This means NASCAR cannot tell the jury the teams could just go to IndyCar or F1 if they didn’t like the terms. The jury will decide if NASCAR is a monopoly in this much narrower marketplace.”

A legal filing provided by Pockrass sheds further light on the judge’s ruling in the matter. It notes of other motorsports like IndyCar and F1:

“In opposing Plantiffs’ relevant market, NASCAR now contends that the same motorsports that could not supply racing teams to the Cup Series are suddenly readily available substitutes for the Cup Series teams like Plaintiffs to sell their services. Not only is it illogical, but there is no record evidence that racing teams in various motorsports can only move from NASCAR to another motorsport but not vice-versa.”

Pockrass also noted that Judge Bell used NASCAR’s own counterclaim, which identified the market as “the market for entry of cars into NASCAR Cup Series races in the United States and any other location where a Cup Series race is held,” in clarifying the market for the 23XI and FRM allegations.

The FOX Sports reporter also noted that the judge denied NASCAR’s motion for summary judgment to throw out the case.