CHARLOTTE, N.C. – NASCAR has requested a judicial settlement conference from a federal court. The goal is for an independent judge to mediate in the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports.In a late presentation on Monday night, the two teams expressed their desire to continue working with mediator Jeffrey Mishkin. Mishkin, former executive vice president and general counsel of the NBA, has been negotiating between both parties during this year.
23XI and Front Row argued that NASCAR should continue working with Mishkin or present a settlement offer directly to the plaintiffs’ lawyers. However, NASCAR has not responded to these requests and, instead, filed this motion.Mr. Mishkin has invested a great deal of time in learning about this case and meeting with the parties.
23XI and Front Row
The teams argued that Mishkin possesses “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator for the International Court of Arbitration for Sport, the America’s Cup, FIFA, and the NFL, among others.Furthermore, the teams argued that “starting over” with a new mediator is “less likely, not more likely, to lead to a resolution”.These opposing motions arise as NASCAR seeks a summary judgment to dismiss the case before the start of the trial scheduled for December 1. The hearing on this motion is scheduled for October 21.The issue at hand is the protection of the franchise system, which is fundamental to NASCAR’s business model and the central point of the legal dispute. This system guarantees owners places in the competition and a base amount of income each year. According to NASCAR, it has created more than $1.5 billion in capital value for its teams since 2016.A year ago, 13 of the 15 teams re-signed, believing that more than two years of negotiations would not lead to a better deal. 23XI, co-owned by Jordan and Denny Hamlin, three-time Daytona 500 winner, and Front Row Motorsports, owned by businessman Bob Jenkins, went to court.For months, the other 13 teams have privately complained that the lawsuit is creating uncertainty about the future of NASCAR. Mishkin has made no progress toward a settlement, and NASCAR now wants a federal judge, other than U.S. District Judge Kenneth Bell, who is presiding over the case, to hear from both sides and advise on a resolution.Last week, most of the major NASCAR teams filed statements asking for an agreement and protection of the franchise system, which NASCAR pointed out in its filing Monday night with the U.S. District Court for the Western District of North Carolina.It seems that NASCAR is not happy with the diagnosis and wants to seek a second opinion.
23XI and Front Row
Both parties have shown a willingness to dialogue, but no progress has been made.Through a judicial conciliation conference, NASCAR hopes to get a judge who can lead the talks and offer insight into how a jury might interpret NASCAR’s complex antitrust case.The court must approve NASCAR’s request.All parties have declared they are open to an agreement, including Jordan, who also added after a hearing in August that he was willing to go to trial if necessary.The willingness of the parties to resolve this matter, along with the interests of others in the sport and the Tribunal to see this case resolved, suggest that a judicial conciliation conference would be a meaningful way to facilitate a settlement.
NASCAR
I look forward to facing the fire. If I have to fight until the end, for the good of the sport, I will. We have always been open to an agreement. We always have been. We have never ruled it out.
Michael Jordan
