Key NASCAR Monopoly Case Detail Overlooked by Fans

A recent legal filing has brought renewed attention to the long-standing debate over NASCAR’s business model and market competition. The case involves a antitrust lawsuit filed by a former race team, with a key procedural detail highlighted by journalist Bob Pockrass.

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Former NASCAR team owner John Cohen’s company, Diversity Motorsports, filed an antitrust lawsuit against NASCAR and International Speedway Corporation (ISC) in 2023. The lawsuit alleges NASCAR operates as an illegal monopoly and conspired to put the team out of business.

The case was dismissed by a U.S. District Court judge in February 2024. The judge ruled the plaintiffs failed to show NASCAR’s actions were the direct cause of the team’s failure.

An appeal was filed with the 11th U.S. Circuit Court of Appeals in early April 2024. NASCAR and ISC filed a motion on April 22, 2024, requesting the appeals court affirm the lower court’s dismissal.

FOX Sports reporter Bob Pockrass noted a specific detail in the motion. He pointed out that NASCAR’s legal filing argues the former team owner “cannot show antitrust injury” because his team failed to qualify for races, not because of any alleged anticompetitive conduct.

Summary

A dismissed antitrust lawsuit against NASCAR has been appealed, keeping the legal challenge alive. The suit, from former team Diversity Motorsports, claims NASCAR illegally monopolizes the stock car racing market.

The central claim is that NASCAR used its control over major racetracks and events to harm competition. The district court dismissed the case, finding no proof NASCAR’s actions directly caused the team’s collapse.

NASCAR has now asked the appeals court to uphold the dismissal. Its filing contends the team’s failure was due to poor competitive performance, not anticompetitive behavior.

The appeal process will determine if the lawsuit proceeds further or is conclusively ended.

FAQs

**What is this lawsuit against NASCAR about?**
The lawsuit alleges NASCAR violates antitrust laws by operating as a monopoly and conspiring to control the market. It was filed by a former race team that claims this behavior led to its failure.

Why was the lawsuit initially dismissed?
A federal judge dismissed the case in February 2024. The ruling stated the plaintiffs did not successfully prove that NASCAR’s alleged conduct was the direct cause of their team going out of business.

What happens now with the case?
The former team owner has appealed the dismissal to a higher court. NASCAR has filed a motion asking that court to affirm the original dismissal, arguing the team’s failure was due to its inability to qualify for races.

Disclaimer: This report is for informational purposes only and does not constitute financial advice. All information is based on verified reporting available at the time of publication.