NASCAR has requested a federal court for a conciliation judicial conference so that an independent judge mediates in the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. The two teams responded in their own presentation on Monday night, indicating their desire to continue working with mediator Jeffrey Mishkin. Mishkin is the former executive vice president and general counsel of the NBA, who has been negotiating between both parties during this year.
The teams argued that Mishkin “has significant experience in complex antitrust disputes related to sport and has acted as an arbitrator or mediator for the Court of Arbitration for Sport, the America’s Cup, FIFA and the NFL, among others”. Furthermore, the teams maintain that “starting over” with a new mediator is “less likely, not more likely, to lead to a resolution”. These motions are presented as NASCAR seeks a summary judgment to dismiss the case before the start of the trial scheduled for December 1. The hearing on that motion is scheduled for October 21. The issue at hand is the protection of the franchise system, which is the core of 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 equity value for its teams since 2016. A year ago, 13 of the 15 teams re-signed when they believed that more than two years of negotiations would not lead to a better deal. 23XI, co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, 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 failed to make 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 both sides and advise on a resolution. Last week, most of NASCAR’s top teams filed statements calling for an agreement and the protection of the franchise system, which NASCAR noted in its presentation on Monday night before the United States District Court for the Western District of North Carolina. 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, suggests that a judicial settlement conference would be a meaningful way to facilitate a settlement. Both parties have shown their willingness to dialogue, but no progress has been made. Through a judicial conciliation conference, NASCAR hopes to bring in a judge who can help direct the conversations and offer information on 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 take it to trial if necessary.Mr. Mishkin has invested a great deal of time in learning about this case and meeting with the parties. The plaintiffs have requested that NASCAR continue to interact with them through Mr. Mishkin or make a settlement offer directly to the plaintiffs’ attorney, but NASCAR has not responded to those requests and, instead, filed this motion.
23XI Racing and Front Row Motorsports
I look forward to going all the way. If I have to fight to the end, for the sake of the sport, I will. We have always been open to an agreement. We always have been. We have never taken that off the table.
Michael Jordan
