23XI statement on not signing Charter agreement

23XI and FRM has two options, sign or not sign.

I guess what I don't understand is how the business world works. When I was employed my employer routinely would come out at the end of the year and tell all us sheep that the next year was going to be a difficult year due to the current economic conditions. ALWAYS! Sometimes, they said we wouldn't get a pay raise, sometimes no bonuses, sometimes our budgets were drastically cut and we had zero, nada, recourse.

What's even crazier is these teams are not even employed by NASCAR. They simply have a financial benefit because of NASCAR. NASCAR is in business to make the most money it can and will make business decisions accordingly. 23XI and FRM can either be onboard or not. All the other teams seem to understand.
 
StandOnIt said:
That is about the only thing in that statement that can be quantified. Inflation/greedflation was high a couple years after the pandemic, but inflation/greedflation continues to decline.
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But the costs of things haven't come down. They aren't going to. Gasoline is one of the few commodities that fluctuates. Engine parts, components, salaries, etc. aren't coming down. Teams need more money to operate and turn a profit. These teams aren't in it to break even.
 
The Nature Boy said:
They could probably file an antitrust suit against NASCAR …
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That would appear to be a distinct possibility.

“The teams have hired Jeffrey Kessler, partner and co-executive chair of Winston & Strawn LLP, who most famously led the Winston team that successfully challenged the compensation restrictions against NCAA college athletes and paved the way for the new Name, Image and Likeness policies that have emerged in its aftermath.”

“Kessler also led the United States Women’s National Soccer Team in its successful fight for equal pay while also filing free agency litigation on behalf of NBA and NFL players.”

sportsnaut.com

Race teams hire top antitrust lawyer as NASCAR revenue sharing negotiations stall

The two sides remain far apart on a new revenue sharing agreement
sportsnaut.com sportsnaut.com

“There are few attorneys whose involvement in a dispute is newsworthy, but Jeffrey Kessler is no ordinary attorney.

He’s basically the Michael Jordan of sports litigation and the go-to lawyer for sports labor and antitrust disputes.

The Winston & Strawn partner who famously secured a 9-0 victory at the U.S. Supreme Court in NCAA v. Alston (2021) has been retained by NASCAR teams as they and NASCAR negotiate a new charter agreement. Kessler’s addition was reported by the Associated Press on Sunday.

Over the years, Kessler has led litigations on behalf of leading figures in sports, including Tom Brady, the NFLPA, U.S. Women’s National Soccer Team and the NBPA. Kessler is currently advocating for college athletes in Carter v. NCAA and In Re College Athlete Litigation (also known as House v. NCAA). In these cases the NCAA and Power Five conferences are accused of violating antitrust law by conspiring to limit college athlete compensation.”

www.sportico.com

Kessler Joins NASCAR Team Negotiation in Sign of Antitrust Action

There's no attorney more feared in sports than Jeffrey Kessler. NASCAR team owners have retained the Supreme Court-winning lawyer for NASCAR talks.
www.sportico.com www.sportico.com

“Winston & Strawn and Hagens Berman recently announced jointly with the NCAA, Big Ten, SEC, Pac-12, Big 12 and ACC a landmark antitrust class-action settlement resolving three pending antitrust lawsuits which challenge NCAA limits on compensation and benefits that college athletes can receive for their athletic services and their names, images, and likenesses (NIL). In addition to paying more than $2.75 billion in damages to college athletes over a 10-year period, the settlement eliminates certain rules from the NCAA and conferences that prohibit direct payments from schools to athletes. The settlement also allows schools to share revenues directly with college athletes through new payments and benefits.”

www.winston.com

Winston & Strawn Secures Multibillion-Dollar Settlement for College Athletes

Winston & Strawn and Hagens Berman recently announced jointly with the NCAA, Big Ten, SEC, Pac-12, Big 12 and ACC a landmark antitrust class-action settlement resolving three pending antitrust…
www.winston.com www.winston.com
 
I am just thankful that NASCAR is a benevolent dictatorship and so willing to place the interests of everyone else above its own needs. They truly should been awarded a non-profit tax status a long time ago.

I just know with all of my soul that the books need to remain closed. Nascar always gets it right and damn the man that questions them.

Nascar only wants to buy Charters themselves for the most altruistic reasons. They are the good guys that would never do anything to devalue the other charter teams.

I am so thankful they are protecting the public from the bad guys like Hamlin and the deadlines Nascar pushed are only to protect us from forces like Demonic Danny

Fine they asses and castrate them if they ever forget to always sweet talk or be anything other than Nascar Fanboys themselves. Keeping the bad news is just evidence of Nascars impeccable credibility. Never question them they are always right, long live the media lackies that know they had better cover Nascars ass if they know what's good for them.
 
Antitrust issues?

I wonder if the 105 page agreement, complete with its numerous grammatical errors, includes changing the rules to allow NASCAR to take 1 or more of the 4 unfilled charter positions currently “reserved” for future involvement by another manufacturer in order to field teams of its own? I imagine Jr Motorsports could do a good job representing the new team “owner”. 😇

Also wondering if the agreement includes a clause triggering a percentage payment to NASCAR whenever a charter is sold? The mind wanders.

In the meantime, my guess is lots of overtime / weekend work at Winston and Strawn prepping the antitrust filings and whatever is required to petition the system to have the current Charter status quo maintained while the mountain of fecal matter makes its way through the fan.

Discovery should be interesting.
 
Charlie Spencer said:
That was six months ago. Whatever he's done since doesn't appear to have affected NASCAR's tactics much.
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Doesn’t appear to have affected it at all. NASCAR’s ultimatum was delivered last Friday. The legal response to that will be along in due course.

A reminder to readers … a lot of this is my opinion.
 
aunty dive said:
In the meantime, my guess is lots of overtime / weekend work at Winston and Strawn prepping the antitrust filings and whatever is required to petition the system to have the current Charter status quo maintained while the mountain of fecal matter makes its way through the fan.
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I expect a top tier firm had most of the paperwork done long ago, just needing team names and some dates pasted in.

I can't help thinking it would look better if at least one team from each manufacturer had abstained. None of the Bowties wanted to die on this hill.
 
Charlie Spencer said:
I expect a top tier firm had most of the paperwork done long ago, just needing team names and some dates pasted in.

I can't help thinking it would look better if at least one team from each manufacturer had abstained.
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The 105 pager that went out Friday included some revisions / additions but yes, the main body of work is quite likely ready to go.

Maybe Hendrick wagged his finger.
 
Charlie Spencer said:
I expect a top tier firm had most of the paperwork done long ago, just needing team names and some dates pasted in.

I can't help thinking it would look better if at least one team from each manufacturer had abstained. None of the Bowties wanted to die on this hill.
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The NASCAR/Business nerd in me would love to read that document
 
The Nature Boy said:
I would rather the Norma Rae of NASCAR be someone other than an emotionally volatile crybaby. The messenger matters as much as the message and Hamlin has no credibility.
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Denny is only the public mouthpiece. MJ and Polk are what matters. I dislike Denny as much as anyone does. but I always give credit to those willing to challenge the status quo and group think.
kkfan91 said:
I'm not a France fan but I trust them and their vision far more than Denny Hamlin. Denny is one of those guys who thinks because he can talk it makes him smart. That is rarely the case.
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I haven't trusted their vision any farther than I could throw it for about 25 years know. As far as I'm concerned, Bill Jr. was the last person in Daytona Beach that had a damn clue. I wouldn't hire any of the current bunch to manage a Jiffy Lube.
 
StandOnIt said:
It's called a private family owned business. They bought out stakeholders years ago. They have complete control.
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And now essentially own all the cars & technology. No reason they can't pull the charters, make an insignificant change to the cars chassis, tell the teams your cars don't meet specification and you can not purchase updates. They junk. Go try to run IMSA with them. Ohwait? We own that series too. You out of luck folks. Would keep lawyers in cash for years.

Some seem to have forgotten or never understood reason for charters. Was so the team is worth something. Nearly every team owner that sold out in the past got pennies on-the-dollar for their stockpile of cars/equipment. Because the "hardparts" were fairly useless. Constant updates made that so. The teams want "the team" to have value. Not sure how they accomplish that or why NASCAR would allow it.

I won't be surprised if the two teams that held out lose their charter. Either run open or walk away. Only real choices if NASCAR makes their stuff "forbidden fruit".
 
I don't think the teams want any ownership in NASCAR itself, I believe they're just looking for fair marketing compensation. Nobody watches NASCAR to see the France family.
 
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