Feb

25

District Court Dismisses Claims Because of Insufficient Proof of Market Definition

Posted by : Matthew Wild | On : February 25, 2008

January 7, 2008.  In Kentucky Speedway, LLC v. Nat’l Ass’n of Stock Car Auto Racing, Inc., Civil Action No. 05-138 (WOB), 2008 WL 113987 (E.D.K.y. Jan. 7, 2008), the district court granted summary judgment dismissing plaintiff’s Section 1 and 2 claims.   Kentucky Speedway sued because NASCAR refused to sponsor a NEXTEL race at its track.  The Court considered it a “jilted distributor” case.  It found that Kentucky Speedway failed to come forward with sufficient proof of relevant product market — an essential of element of both its Section 1 and 2 claims.   It rejected the proposed relevant markets of a sanctioning market for the NEXTEL race and a hosting market for the same race.  It granted NASCAR’s Daubert motion to exclude Kentucky Speedway’s expert because he did no study to determine the cross-elasticity of demand between NEXTEL races and other potential substitutes such as sporting events in general.  Rather, Kentucky Speedway’s expert assumed only that a Bush NASCAR race event was a potential substitute.

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