NASCAR Seeks to Mediate Antitrust Lawsuit with 23XI Racing and Front Row Motorsports
In a recent move, 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. The teams, for their part, have expressed their desire to continue working with Jeffrey Mishkin, who has been negotiating between the parties during this year. Mishkin, former executive vice president and general counsel of the NBA, has invested a considerable amount of time in the case.The teams argue that Mishkin possesses “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator for various international sports organizations. 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. A hearing on this motion is scheduled for October 21. The core of the dispute lies in the protection of NASCAR’s franchise system, a central element of its business model. This system guarantees owners spots in the competition and a base amount of annual income, generating, according to NASCAR, more than $1.5 billion in capital value for its teams since 2016. A year ago, 13 of the 15 teams renewed their contracts, considering that negotiations of more than two years would not lead to a better agreement. However, 23XI, co-owned by Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, decided to take the case to court. For months, 13 other teams have privately expressed concern about the uncertainty the lawsuit creates for NASCAR’s future. In the absence of progress in negotiations with Mishkin, NASCAR is now seeking a federal judge, other than District Judge Kenneth Bell, to oversee the talks and offer a solution. Last week, most NASCAR teams filed statements in favor of an agreement and the protection of the franchise system, something NASCAR highlighted in its presentation Monday night before 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’ attorney, but NASCAR has not responded to those requests and, instead, filed this motion.”
23XI Racing and Front Row Motorsports
Although both parties have shown a willingness to dialogue, no concrete 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 the complex antitrust case. NASCAR’s request must be approved by the court. All parties, including Michael Jordan, have expressed their openness to an agreement. Jordan, after a hearing in August, also stated 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 of the Tribunal in seeing this case resolved, suggest that a judicial conciliation conference would be a meaningful way to facilitate a settlement,” NASCAR wrote.
NASCAR
“I look forward to going all the way. If I have to fight to the end, for the good of the sport, I will,” Jordan declared. “We have always been open to an agreement. We always have been. We have never taken that option off the table.”
Michael Jordan
