NASCAR has requested a settlement conference from 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. The teams responded late Monday night, indicating their desire to continue working with mediator Jeffrey Mishkin. Mishkin, former executive vice president and general counsel of the NBA, has been negotiating between the two parties during this 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 opposing motions are presented while 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. The central issue is the protection of the franchise system, which is fundamental to NASCAR’s business model and the focal point of the legal dispute. This system guarantees team owners positions in the competition and a base amount of income each year. According to NASCAR, it has generated more than $1.5 billion in equity 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 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 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 NASCAR’s top teams filed statements asking for an agreement and protection of the franchise system, something NASCAR pointed out in its presentation Monday night to the U.S. District Court for the Western District of North Carolina.Mr. Mishkin has invested a great deal of time in learning this case and meeting with the parties. The plaintiffs have requested that NASCAR continue negotiating 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 and Front Row
Both parties have shown their willingness to dialogue, but no progress has been made. Through a judicial conciliation conference, NASCAR hopes to get a judge who can lead 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 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 going all the way. If I have to fight to 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 taken that off the table.
Michael Jordan
