NASCAR antitrust trial opens with huge stakes and Michael Jordan in the courtroom

CHARLOTTE N C AP The federal antitrust trial against NASCAR opened Monday with the star power of Michael Jordan on hand as a jury of nine was seated to hear statements that the stock car series is a monopolistic bully that leaves its teams no option but to comply with rules and financing they don t agree with The retired NBA Hall of Famer is the co-owner of the XI Racing company at the top Cup Series level XI and Front Row Motorsports sued the series last year rather than sign extension agreements on new charters which are franchise-type designations that serve as the framework for the revenue stream between NASCAR and the teams The stakes are huge The charters are at the heart of NASCAR s business model they guarantee a car a spot in the field each race week as well as a percentage of the purse and the disputes over how they work have dominated the series of late A loss for the two teams could oust them from the series while a loss for NASCAR could mean a fundamental restructuring of how the series operates Six men and three women were seated for a trial expected to last two weeks before U S District Judge Kenneth Bell who urged for opening statements to be completed later Monday Bell ruled that XI co-owner and star driver Denny Hamlin and Curtis Polk the longtime business manager for Jordan and part of the crew s ownership group will be sequestered after opening statements before they testify Jordan s presence in the courtroom gallery near Hamlin was a factor Among those dismissed from serving on the jury was a man who noted he can t be impartial because I like Mike and another who explained he had Michael Jordan posters on his walls growing up A juror declared they were a North Carolina fan but noted the football company at Jordan s alma mater is not doing too well right now to which the retired star shook his head and laughed NASCAR executives in the courtroom included chairman Jim France and vice chair Lisa France Kennedy two scions of the family that founded NASCAR in and still owns it XI and Front Row were the only two teams out of to refuse to sign extensions on new charter agreements last fall The teams requested multiple concessions and when they didn t get them they went to court The scenario has churned through hearings and arguments for more than a year despite calls from other NASCAR teams to settle Bell even helped mediate a failed two-day summit in October A NASCAR supremacy could put XI Front Row and their six combined cars out of business Their charters now being held by NASCAR would likely be sold The last charter went for million and NASCAR has indicated there is interest from anticipated buyers including private equity firms A win for the teams would lead to monetary damages and the anticipated demolition of NASCAR as it is run currently The judge has the power to unravel a monopoly and nothing is off the table from ordering a sale of NASCAR to the dismantling of the charter system The claims The charter system introduced in is NASCAR s version of the franchise model used by largest part professional sports leagues Being chartered guarantees that car a spot in the -car field for all races as well as a defined payout from the weekly purse Even with the charters the teams have argued that the revenue model is not viable The teams yearned more favorable terms for the charters including having them made permanent they are renewable and revocable a larger percentage of revenues and a voice in governance XI and Front Row also argue NASCAR has a vice grip on all aspects of the racing series and allege a monopoly based on exclusivity clauses ownership of majority of the race tracks on the Cup Series schedule and its control of the rules and regulations NASCAR says it has not violated antitrust law because it has done nothing to restrain exchange beyond normal business practices NASCAR has argued that payouts in the charter agreement increased and prove the series is not anticompetitive NASCAR has also cited the option for cars to enter races as open teams and try to make the field in one of four nonchartered spots on qualifying speed XI and Front Row raced this season as open teams and while their combined six cars made every race it cost the organizations millions in purse money The pretrial discovery process revealed NASCAR made more than million in Behind-the-scenes drama The discovery phase was brutal for both sides The antitrust claims have exposed salacious personal communications NASCAR s finances and a deep contempt between specific of the top executives in the sport and its participants NASCAR Commissioner Steve Phelps was among leadership who in a discussion with other NASCAR executives called Hall of Fame gang owner Richard Childress a dinosaur an idiot and a stupid redneck The discussion also included a reference that Childress owes his entire fortune to NASCAR and needed to be taken out back and flogged Another NASCAR executive alleged that fans of the sport can t read and multiple series leaders admonished Hall of Fame driver Tony Stewart s summer short-track series SRX and threatened to have it the killed because NASCAR drivers were participating On the other side the president of XI was determined to have mentioned France had to die in order to receive favorable charter terms Hamlin admitted his dislike for the France family one of Jordan s advisers disclosed Hamlin wasn t a good businessman and Jordan joked that he loses more money in a casino than he pays one of his drivers Hamlin a three-time Daytona winner who less than a month ago had the Cup Series championship slip through his fingers warned this weekend that the gloves will be off during the trial Our fans have been brainwashed with NASCAR s talking points for decades Hamlin wrote on social media Lies are over starting Monday morning It s time for the truth It s time for change AP auto racing https apnews com hub auto-racing Source