NASCAR has requested a federal court for a conciliation judicial conference to mediate the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. The teams responded on Monday night, arguing that they want to continue working with mediator Jeffrey Mishkin, former executive vice president and general counsel of the NBA, who has been negotiating between the parties this 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 international, the America’s Cup, FIFA, and the NFL, among others”. The opposing motions come as NASCAR seeks summary judgment to dismiss the case before the trial scheduled for December 1. The hearing on that motion is scheduled for October 21. At issue is the protection of the franchise system, which is the core of NASCAR’s business model and the central point of the legal battle. This system guarantees team owners positions in the competition and a basic amount of income each year, which, according to NASCAR, has created more than $1.5 billion in equity value for its teams since 2016. A year ago, 13 of the 15 teams re-signed when they believed that more than two years of negotiations would not lead to a better deal. 23XI and Front Row Motorsports, 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 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 of NASCAR’s top teams last week filed statements seeking an agreement and protection of the franchise system, which NASCAR noted in its filing Monday night with 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 Tribunal to see this case resolved, suggests that a judicial settlement conference would be a meaningful way to facilitate a settlement. Through a judicial conciliation conference, NASCAR hopes to bring in a judge who can help direct the conversations and offer insights into how a jury might interpret NASCAR’s complex antitrust case. 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.Mr. Mishkin has invested a great deal of time in learning about this case and meeting with the parties.
23XI and Front Row
I hope to go all the way. If I have to fight to the end, for the betterment 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
