What’s Happening?

23XI and Front Row Motorsports’ new off-the-track partnership is a new one for NASCAR. The two teams, which have different backgrounds and manufacturers, teamed up to sue NASCAR for violating U.S. antitrust Laws. While it seems like the teams are facing an uphill battle, their lawyer, Jeffrey Kessler, is used to this kind of pressure.

• Wednesday morning, Front Row Motorsports and 23XI announced that they had sued NASCAR in the United States District Court for the Western District of North Carolina. The suit concerns NASCAR’s alleged monopoly over Stock Car auto racing.
• The teams 23XI, owned by Michael Jordan and Denny Hamlin, and FRM have long been vocal about their issues with NASCAR. 23XI and FRM’s list of reasonings includes complications with the NASCAR Next Gen car program and its parts, along with NASCAR’s track ownership and ownership of ARCA, among other things.
• This step was bold but not unprepared. The two held out on signing the new NASCAR Charter Agreement in early September. At that time, the two were relatively quiet about their next step. However, it appears the two used that time to prepare and gain valuable legal support from Winston & Strawn LLP Co-Executive Chairman Jeffrey Kessler.

Who Is Jeffery Kessler?

Kessler is a long-tenured veteran of the courtroom with many sports antitrust cases similar to this one under his belt.

Many publications and peers of the Columbia Law School alumnus hold Kessler in high regard for his work in the business side of sports. His past work includes supporting and developing organizations such as the NHL Players Association, NFLPA, MLBPA, and NBAPA.

These organizations focus on supporting the athletes who play the sports we all know and love. Kesslers’ victories have helped athletes earn valuable and occasionally overlooked workers’ rights. Taking on some of the world’s most formidable and well-backed foes, like the NFL and NBA, makes Kessler the right fit to take on NASCAR.

Despite Kessler’s fascinating history, some of his recent victories are his most notable. Recently, Kessler helped the United States Women’s National Soccer Team earn an equal-pay settlement with U.S. Soccer. However, his most prominent work is with current and former Division One NCAA athletes. Kessler is a key figure in the development of Name Image Likness in 2022 and a major antitrust settlement between athletes and the NCAA earlier this year.

Earlier this season, NASCAR teams hired Kessler as an advisor in the then-ongoing NASCAR Charter Agreement Negotiations. While the 13 teams that signed the agreement cannot join 23XI and FRM on the new suit. Kessler is sticking around for the two teams to, rather than advise, take on NASCAR.

What Tone Is He Bringing to This Case?

Kessler stood bold in a press conference today with the media. He was not overly confident but rather prepared and ready to take on NASCAR and the France family as a whole.

Kessler is not attacking the sport but rather the family that has called the shots for 76 years. The Frances have, in their time, had their doubters and competition while holding strong. However, Kessler is swinging for the fences.

In his press conference today, Kessler said:

“There has never been a case that I have found that is as egregiously anti-competitive as this one. Here we have a sport where one family has basically used its power to create an absolute monopoly for the benefit of that family as opposed to being for the benefit of the teams, the drivers, the sponsors, the broadcasters, and the fans.” — Jeffrey Kessler, Co-Executive Chairman of Winston & Strawn LLP

Like always, Kessler looks to be bringing his “A” game, something he has used time and time again to win in the courtroom. However, NASCAR won’t go down easy; they have had challenges before, and they will be just as prepared as the two teams they face.

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