NASCAR Seeks New Mediator in Antitrust Lawsuit: End in Sight?

NASCAR Seeks to Mediate Antitrust Lawsuit with 23XI Racing and Front Row Motorsports

In an unexpected turn, NASCAR has requested a judicial 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. However, the demanding teams responded by submitting their own request on Monday night. In it, they expressed their desire to continue working with the current mediator, Jeffrey Mishkin. Mishkin, former executive vice president and general counsel of the NBA, has been negotiating between the parties for the past year.

“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 collaborate with them through Mr. Mishkin or that it present 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

The teams argue that Mishkin possesses “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator in international sporting instances. 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 start of the trial scheduled for December 1. The hearing on this motion is scheduled for October 21. The core of the dispute is the protection of NASCAR’s franchise system, known as the charter system, which is fundamental to its business model. This system guarantees owners grid positions, a base amount of annual income and, according to NASCAR, has generated more than $1.5 billion in capital value for the teams since 2016. A year ago, 13 of the 15 teams signed new agreements believing that negotiations would not lead to a better deal. 23XI, co-owned by Jordan and Denny Hamlin, three-time winner of the Daytona 500, and Front Row Motorsports, owned by businessman Bob Jenkins, decided to take the case 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 both sides and advise on a resolution. Last week, most of NASCAR’s top teams filed statements supporting an agreement and the protection of the charter system, something NASCAR highlighted in its presentation Monday night to the U.S. 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 Court to see this case resolved, suggest that a judicial settlement conference would be a meaningful way to facilitate a settlement,” NASCAR wrote. Although both parties have shown a willingness to dialogue, no progress has been made. By means of 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 declared they are open to an agreement, including Michael Jordan, who also added 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 declared 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