NASCAR has requested a conciliation judicial 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. NASCAR’s request seeks a resolution in the legal conflict facing the organization with the mentioned teams. In response, both teams submitted a request on Monday night. In this, they expressed their desire to continue working with mediator Jeffrey Mishkin. Mishkin is the former executive vice president and general counsel of the NBA, who has been negotiating between the parties during this year.
“Mr. Mishkin has invested a great deal of time in learning this case and meeting with the parties,” 23XI and Front Row stated in their presentation. “Therefore, 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 MotorsportsThe teams argued that Mishkin possesses “significant experience in complex antitrust disputes related to sports.” In addition, they highlighted his career as an arbitrator or mediator for the Court of Arbitration for Sport, the America’s Cup, FIFA, and the NFL, among others. They also argue that “starting over” with a new mediator is “less likely, not more likely, to lead to a resolution”. These motions are presented as NASCAR seeks a summary judgment to dismiss the case before the start of the trial, scheduled for December 1. The hearing on that motion is scheduled for October 21. The central point of the litigation is the protection of NASCAR’s franchise system, known as “charter”. This system is fundamental to the organization’s business model. A charter guarantees owners a place in the competition and a base amount of income each year. According to NASCAR, this system 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, considering that more than two years of negotiations would not lead to a better agreement. 23XI, co-owned by Jordan and Denny Hamlin, winner of three editions of the Daytona 500, and Front Row Motorsports, owned by businessman Bob Jenkins, chose to go 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 an agreement 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 submitted statements requesting an agreement and protection of the charter system. NASCAR referenced this 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 Tribunal to see this case resolved, suggest that a judicial conciliation conference would be a meaningful way to facilitate a settlement,” wrote NASCAR. Although both parties have shown a willingness to dialogue, no progress has been made. With 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 expressed their openness to an agreement, including Jordan. Following a hearing in August, Jordan stated his willingness to go to trial if necessary.“I hope to go all the way. If I have to fight to the end, for the good of the sport, I will,” he affirmed outside the federal court. “We have always been open to an agreement. We always have been. We have never ruled out that possibility.”
Michael Jordan
