NASCAR Seeks New Mediator in Antitrust Lawsuit, 23XI and Front Row Oppose

NASCAR Seeks to Mediate Legal Dispute with 23XI Racing and Front Row Motorsports

The prestigious NASCAR racing organization has requested a judicial conciliation conference in a federal court. The goal is for an independent judge to mediate the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. In response to this request, the teams submitted a document on Monday night, expressing their desire to continue working with the current mediator, Jeffrey Mishkin. Mishkin, former executive vice president and general counsel of the NBA, has been negotiating between the involved parties for the past year.

“Mr. Mishkin has invested a great deal of time in understanding this case and meeting with the parties,” 23XI and Front Row stated in their presentation. “The plaintiffs have requested that NASCAR continue to interact with them through Mr. Mishkin or make a settlement offer directly to the plaintiffs’ legal counsel, but NASCAR has not responded to those requests and, instead, filed this motion.”

23XI Racing and Front Row Motorsports

The teams argued that Mishkin possesses “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator for major international sports organizations. Furthermore, the teams maintain that “starting over” with a new mediator is “less likely, not more likely, to lead to a resolution”. These motions come as NASCAR seeks a summary judgment to dismiss the case before the start of the trial scheduled for December 1. A hearing on that motion is scheduled for October 21. At the heart of the dispute lies the protection of NASCAR’s franchise system, a crucial element for its business model. This system guarantees owners a place in the competition and an annual income base, which, according to NASCAR, has generated more than $1.5 billion in value for the teams since 2016. A year ago, 13 of the 15 teams renewed their agreements, even though negotiations of more than two years did not achieve a better deal. 23XI, co-owned by Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, chose to take the matter to court. For months, 13 other teams have expressed concern about the uncertainty that the lawsuit generates for NASCAR’s future. In the absence of progress in negotiations with Mishkin, NASCAR is now seeking a federal judge, other than District Judge Kenneth Bell, to oversee the talks and advise on a possible resolution. Last week, most of NASCAR’s top teams submitted statements in favor of an agreement and the protection of the franchise system, something NASCAR highlighted in its presentation on Monday night.

“The willingness of the parties to resolve this matter, along with the interests of others in the sport and of the Tribunal to see this case resolved, suggest that a judicial conciliation conference would be a meaningful way to facilitate a settlement,” NASCAR wrote.

NASCAR

Although both parties have shown a willingness to dialogue, no significant progress has been made. Through a judicial conciliation conference, NASCAR hopes to involve a judge who can guide the conversations and offer a perspective on how a jury might interpret this complex antitrust case. The NASCAR request must be approved by the court. All parties involved, including Michael Jordan, have expressed their openness to an agreement. Jordan, after a hearing in August, stated that he was willing to go to trial if necessary.

“I’m looking forward to going all the way. If I have to fight to the end, for the good of the sport, I will,” he declared outside the federal court. “We have always been open to a settlement. We always have been. We have never ruled out that possibility.”

Michael Jordan