Experts say NASCAR likely settled lawsuit for millions

NASCAR likely paid out millions of dollars in damages to get 23XI Racing and Front Row Motorsports to end their antitrust trial, according to two experts in the space, but the move gave the sanctioning body certainty instead of leaving its future up to a judge and jury.

Meegan Hollywood, an antitrust litigator of the Shinder, Cantor & Lerner law firm, told Sports Business Journal that she expects NASCAR paid out 10% to 25% of the $365 million in damages requested by 23XI and Front Row. A second antitrust lawyer who requested anonymity to speak freely said it was unlikely the teams settled for less than 50%.

A 10% settlement would have been $36.5 million, while 50% would have been $182.5 million.

NASCAR and the teams are believed to have spent millions on lawyers. 23XI and Front Row hired Winston & Strawn, while NASCAR used Latham & Watkins. Hollywood estimated both sides might have combined for as much as $50 million in lawyer fees, while the second attorney thought the figure could be closer to double that amount.

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Heading into the trial, one element seemingly put NASCAR at a disadvantage: U.S. District Court judge Kenneth Bell’s ruling that NASCAR was a monopsony because of language it used in a now-dismissed countersuit he said effectively admitted that status. It left the jury to determine only whether NASCAR had used its powers illegally and if it hurt the teams.

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Hollywood said NASCAR will likely receive advice from lawyers on how to adjust its contracts and rules to avoid future anti-trust litigation, such as altering the non-compete clauses it currently has with race tracks (such as Rockingham that was just bought by the IHRA). Sports Business Journal