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Here is an explanation of Thursday’s court decision and its impact:
What happened on Thursday?
A panel of three judges of the Fourth Circuit Court of Appeals unanimous ruled to evacuate the preliminary order that an American judge of the US District Court 23xi Racing and Front Row Motorsports allowed to run as chartered teams, despite not signing the charter agreement.
How does the decision of Thursday affect Michigan?
It does in no way.
Why?
23xi Racing and Front Row Motorsports can submit a petition for rehearsal (requesting that the court reconsider its decision) or a petition for the rehearsal and banc-which means the full fourth Court of Appeal, addresses the issues instead of the three-justice panel.
It must be submitted within 14 calendar days after the judgment (June 5). This would place the deadline on June 19.
If the teams are not looking for a rehearsal, what happens?
The decision of the three-judge panel becomes seven days after the expiry of the time to submit a petition for rehearsal.
In this matter, this would mean that the panel’s decision could be in effect on June 26 – two days before the Atlanta race.
What happens in that situation?
The 23xi race and front motorsport cars would be classified as open cars instead of chartered cars.
What would happen to their charges?
It will be to Nascar.
So, 23xi races and front row car sports, imaginable, can’t qualify for race if they lose their charges?
If they were an open team, yes, but in the 50 races since the beginning of last year, only two – the Daytona 500 last year and this year – could not qualify.
But both teams would make less money than an open team, correct?
Yes, but before one goes too far from this road, let’s see which 23xi races and front row motor sports decide to do after today’s court opinion. For the time being, 23xi Racing and Front Row Motorsports remain chartered teams and their six cars are all chartered cars.
What was the reaction of the teams on Thursday?
This is the statement of Jeffrey Kessler, the main advocate for 23xi Racing and Front Row Motorsports:
“We are disappointed with today’s verdict by the fourth Court of Appeal and are reviewing the decision to determine our next steps. This decision is based on a very close consideration or an release of claims in the charter agreements is anti-competitive and does not have an impact on our chances of winning at the test of 1 December. To bring about a struggle, to create a struggle, and our struggle continues to create a struggle, to create a struggle and create a direct struggle.
What does the three-judge panel have in his opinion?
“At the argument of a preliminary order in this case, the District Court ruled that the plaintiffs (23xi and leading row) would probably succeed with the merits of their antitrust action against the National Association for Stock Car Auto Racing, LLC (NASCAR), and his CEO, James France, because NASCAR, as an alleged monopolist, is to do this, to enter an antitrust.
The judges later said in their opinion …
“In short, because we have found no support for the statement that a business entity or person violates the antitrust laws by requiring a prospective participant to release past behavior as a condition of doing business, we cannot conclude that the plaintiffs are likely to show that they would probably succeed with the merits of the theory. And without the satisfaction of the likelihood of the success of the success. … We therefore conclude that the District Court abused its discretion to enter the provisional order it did.
How does it affect the lawsuit 23xi Racing and Front Row Motorsports submitted last year, versus vs. Nascar?
It doesn’t. The trial is scheduled for December 1st.
