NASCAR Seeks to Mediate Legal Dispute with 23XI Racing and Front Row Motorsports
NASCAR has requested a conciliation judicial conference from a federal court, with the aim that an independent judge mediates the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. In a presentation held 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 the parties for the past year.The teams argue 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 while 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 central issue of the dispute is the protection of NASCAR’s franchise system, known as the charter system, which is the core of the organization’s business model. This system guarantees owners a place in the competition and a base amount of annual income, which, according to NASCAR, has generated more than $1.5 billion in value for its teams since 2016. A year ago, 13 of the 15 teams renewed their agreements, believing that two years of negotiations would not result in a better deal. However, 23XI, co-owned by Jordan and Denny Hamlin, winner of three Daytona 500s, and Front Row Motorsports, owned by Bob Jenkins, chose to go to court. For months, the other 13 teams have privately expressed their concern about the uncertainty that the lawsuit is creating for the future of NASCAR. Although Mishkin has not made progress in finding a settlement, NASCAR is now seeking for a federal judge, other than U.S. District Judge Kenneth Bell, who is presiding over the case, to hear both parties and offer a resolution. Last week, most of NASCAR’s top teams filed statements in support of an agreement and the protection of the charter system, which NASCAR highlighted 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 about this case and meeting with the parties,” 23XI and Front Row stated in their presentation. “The plaintiffs have requested that NASCAR continue negotiating 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 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,” wrote NASCAR.
NASCAR
Despite the willingness of both parties to dialogue, no progress has been made.
NASCAR hopes that, through a judicial conciliation conference, a judge can direct the conversations and offer a perspective on how a jury might interpret NASCAR’s complex antitrust case. NASCAR’s request must be approved by the court. All parties, including Jordan, have expressed their willingness to reach an agreement, although Jordan also stated after a hearing in August 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 said outside the federal court. “We have always been open to an agreement. We always have been. We have never ruled it out.”
Michael Jordan
