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  • Rocky Mount Telegram

    How big is the antitrust lawsuit against NASCAR?

    By Al Pearce,

    16 hours ago

    https://img.particlenews.com/image.php?url=3m9wGg_0w3L532400

    Former NASCAR champion Kyle Larson said something the other day that just doesn’t sit right. Granted, I don’t know the full context of his statement, but one of his observations struck me as odd.

    He said: “It’s obviously the biggest story in the sport currently and probably one of the biggest stories in a long time.”

    I don’t know “long” Larson considers a “long time.” In any case, the recent swarm of stories focusing on an antitrust lawsuit against NASCAR isn’t bigger than the 2001 death of Dale Earnhardt. Nor is it bigger than Toyota’s 2007 debut in the Cup Series. Or, for that matter, the 2014 introduction of the current Playoff system.

    The suit was filed last week in Charlotte. It accuses CEO Jim France and NASCAR of restraint of trade and other revenue-related violations. It came from 23XI team co-owners Michael Jordan and Denny Hamlin, with lesser-known owner Bob Jenkins of Front Row Motorsports tagging along.

    Indeed, the lawsuit is a big story. To many in the sport, it will overshadow Sunday afternoon’s Round 2 elimination race at Charlotte. But “biggest” doesn’t necessarily mean “most important,” and that’s where I disagree with Larson.

    We’ll skip the legal mumbo-jumbo and cut to the chase: in February, after some bargaining, NASCAR offered its 15 owners — representing 38 full-schedule teams — new seven-year Charter Agreements that include better finish-position and point-fund payouts. That promise of more money obligates teams to run every race, and they’re guaranteed a starting spot every weekend no matter their qualifying result.

    Without charge, NASCAR first offered charters in 2016. The idea was to ensure stability, help attract sponsors, and increase a team’s value above and beyond its physical assets. It’s working, since the selling price of charters has gone from less than $10 million early-on to upwards of $20 million today. Even so, Jordan, Hamlin, and Jenkins want more money from NASCAR, which they have called “monopolistic bullies.”

    Some history:

    NASCAR has often been sued since its founding in 1948. The issues have ranged from the death of a worker building the Chicago street circuit to a fan who received unsolicited texts about races in her area. One lawsuit by a former official claimed racial discrimination and sexual harassment.

    Another lawsuit filed by a businessman claimed executives wouldn’t help him build a team for a Black driver.

    Several fans have sued after being injured by debris flying. Safety advocate Bill Simpson sued for defamation after NASCAR’s report suggested his equipment might have contributed to Earnhardt’s death. There have been suits over scheduling and race dates; over lost sponsorship opportunities; over an obscenity-laced cryptocurrency meme; and over drivers’ physical fitness to compete.

    In virtually case, the sanctioning has prevailed or settled without trial. Despite the high-profile nature of this one, that trend figures to continue. As a family-owned company without stockholders, the last thing France wants is a trial during which NASCAR must open its books for all to see.

    In response to questions about the lawsuit, Jordan sounded like the NBA superstar he was: “Everyone knows I have always been a fierce competitor and that will to win is what drives me and the 23XI team. I love racing and the passion of our fans, but the way NASCAR is run is unfair to teams, drivers, sponsors, and fans. Today’s (lawsuit filing) shows I’m willing to fight for a competitive market where everyone wins.”

    Certainly, the plaintiffs know that the first owner to challenge the France didn’t get very far. Hubert Westmoreland sued for $10,000 when his car was disqualified after apparently winning the first Cup race in Charlotte in 1949. A Greensboro, N.C. judge said NASCAR could make and enforce its own rules, that post-race inspections were not subject to judicial review.

    Since 1949, it has remained that way.

    So, my question remains: what is the on-track importance of one billionaire and two multi-millionaires suing another billionaire? Do fans really care if a settlement offers more money to Chartered teams? Are lawsuits between labor and management important unless you’re part of it? I’m guessing fans will tune out as long as 40 teams show up for next year’s Daytona 500.

    And back to that “big story” vs. “important story” comparison: Earnhardt’s death was an important story because it forced NASCAR to upgrade its safety standards. Toyota’s much-hyped arrival was an important story because its deep pockets forced everyone else to upgrade their programs. And the creation of the Playoff system was an important story because it dramatically changed how championships are won.

    They were big and important stories because they changed how things were done. Whether good or bad, they led to changes in the weekly on-track product. They moved fans to become truly passionate, to argue among themselves, to take sides. Mostly, they moved fans to care.

    Do you think this lawsuit will move fans to become truly passionate? Will they feel sorry for Hamlin if his helicopter needs some expensive repairs? Will they worry that Bubba Wallace and Tyler Reddick are underpaid because Jordan/Hamlin couldn’t make their budgets work? Really, will they care as long as cars are racing every weekend? Probably not.

    Not surprisingly, NASCAR hasn’t commented about the lawsuit just as it didn’t comment when Jordan/Hamlin and Jenkins didn’t sign their Charter Agreement last month. France politely refused to comment during last weekend’s race at Talladega. Everything we know, then, has come from the plaintiff point of view.

    But Jim France’s late father once said two things that still ring true. Whether real or apocryphal “Big Bill” France reportedly addressed a group of unhappy drivers with these warnings:

    “Boys, we was racing before you got here and we’ll be racing after you’re gone.” And the other: “You need us more than we need you.”

    True… in both cases. As much today as then.

    Rocky Mount native Al “Buddy” Pearce has spent 55 years covering motorsports, from go-karts to Formula One and everything in between. He worked briefly as a young Evening Telegram intern before becoming a full-time racing writer in 1969. He’s the stock car editor forwww.autoweek.com and is the author of 50 First Victories, his 13th NASCAR book. He’ll be here on Saturdays with insight, history, opinions, news, questions, and critiques about motorsports. He’s in Newport News, Virginia, at omanoran123@gmail.com.

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