NASCAR Seeks to Mediate Legal Dispute with 23XI Racing and Front Row Motorsports
NASCAR’s organization has requested a conciliation judicial conference in a federal court regarding the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. In a presentation held on Monday night, both teams expressed their desire to continue working with mediator Jeffrey Mishkin, former executive vice president and general counsel of the NBA, who has been negotiating between the parties during the current year.The teams argued that Mishkin “has extensive experience in complex antitrust disputes related to sports 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 at a time when NASCAR is seeking 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 central point of the dispute is the protection of NASCAR’s franchise system, known as “charter”, which is fundamental to its business model. This system guarantees owners positions in the competition and a base amount of annual income, which, according to NASCAR, has generated more than $1.5 billion in capital value for its teams since 2016. A year ago, 13 of the 15 teams renewed their contracts, even though they believed that 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, chose to go to court. For months, the other 13 teams have privately complained that the lawsuit is creating uncertainty about NASCAR’s future. 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 from both sides and advise on a resolution. Last week, most of the major NASCAR teams filed statements requesting an agreement and protection of the franchise system, which NASCAR highlighted in its presentation Monday night to the United States District Court for the Western District of North Carolina.“Mr. Mishkin has invested a great deal of time in learning about 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’ attorney, but NASCAR has not responded to those requests and, instead, filed this motion.
23XI Racing and Front Row Motorsports
Both sides have shown a willingness to talk, but no progress has been made. Through a judicial conciliation conference, NASCAR hopes to involve a judge who can direct the conversations and offer a perspective on how a jury might interpret NASCAR’s complex antitrust case. The court must approve NASCAR’s request. All parties have expressed being 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 of the Tribunal in seeing this case resolved, suggest that a judicial conciliation conference would be a meaningful way to facilitate a settlement,” NASCAR wrote.
NASCAR
“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 said outside the federal court. “We’ve always been open to a settlement. We always have been. We’ve never ruled out that possibility.”
Michael Jordan
