The NASCAR matter involved claims of Monopolization and Restraint of Trade brought by two NASCAR Cup Series teams—23XI Racing and Front Row Motorsports—against NASCAR, the sanctioning body that operates the series. Since 2016, NASCAR has allocated participation in its premier Cup Series through a charter system, under which a charter guarantees entry into every points-paying race and entitles the holder to a defined share of revenue. In 2024, NASCAR offered teams a new charter agreement. 23XI Racing and Front Row Motorsports were the only two of the fifteen chartered organizations that declined to sign, and they filed suit on October 2, 2024.
The plaintiffs alleged that NASCAR engaged in Monopolization under Section 2 of the Sherman Act, and unreasonable Restraint of Trade under Section 1, in the market for premier stock car racing in the United States. The plaintiffs sought monetary damages and changes to NASCAR’s business practices. Plaintiffs’ economic expert estimated the teams’ damages at more than $350 million, valuing the teams in part by comparing them to Formula 1 racing teams. On behalf of the defendants, Professor Mark Zmijewski, supported by Erik Himan, Caitlin McCarthy, and Isabel Serrano Alas, provided expert financial-economic testimony evaluating plaintiffs’ damages analysis. Professor Zmijewski evaluated the reliability of the plaintiffs’ expert’s use of Formula 1 as a benchmark and the losses NASCAR would incur had it paid the amounts the plaintiffs’ expert proposed. Professor Zmijewski and his team worked with Chris Yates, Chris Brown, Marguerite (Maggy) Sullivan, and other litigators at Latham & Watkins LLP, who represented NASCAR.
The parties settled on the ninth day of trial, the day after Professor Zmijewski’s direct testimony and during his cross-examination. Under the settlement, NASCAR agreed to amend existing charters to provide a form of permanent (“evergreen”) charter and 23XI Racing and Front Row Motorsports regained their charters for the 2026 season. The settlement’s financial terms were not disclosed.