NASCAR Seeks to Mediate Antitrust Lawsuit by 23XI Racing and Front Row Motorsports
NASCAR has requested a judicial settlement conference from a federal court to mediate the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. The teams, in a late presentation on Monday night, 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 both parties this year.The teams argued that Mishkin has “significant 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 come as NASCAR seeks a summary judgment to dismiss the case before the trial begins, which is 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 focal point of the legal battle. This system guarantees owners spots in the competition and a base amount of income each year, creating, according to NASCAR, 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 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. Most major NASCAR teams last week filed statements seeking agreement and protection of the franchise system, which NASCAR pointed out in its filing Monday night with the U.S. District Court for the Western District of North Carolina.“Mr. Mishkin has invested a great deal of time in getting to know 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 incorporate 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 said 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 in seeing this case resolved, suggest that a judicial conciliation conference would be a meaningful way to facilitate a settlement,” wrote NASCAR.
NASCAR
“I hope to go all the way. If I have to fight to the end, for the sake of the sport, I will,” he said outside the federal court. “We have always been open to a settlement. We always have been. We have never taken that off the table.”
Michael Jordan
