NASCAR Seeks New Mediator in Antitrust Lawsuit: End to the Dispute?

NASCAR Seeks to Mediate Legal Dispute with 23XI Racing and Front Row Motorsports

In an unexpected turn, NASCAR has requested a judicial settlement conference from a federal court, seeking a resolution in the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. NASCAR’s request seeks an independent judge to mediate the case, but the plaintiff teams have expressed their preference to continue working with the current mediator, Jeffrey Mishkin.

“Mr. Mishkin has invested a great deal of time 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 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

The teams argue that Mishkin possesses “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator in major sports organizations. NASCAR’s request comes as it seeks a summary judgment to dismiss the case before the trial is scheduled to begin on December 1. A hearing on this motion is scheduled for October 21. The core of the conflict lies in the protection of NASCAR’s franchise system, known as the “charter” system, which guarantees owners a place in the competition and an annual income base. This system has generated a value of more than $1.5 billion for the teams since 2016, according to NASCAR. A year ago, most teams renewed their agreements, while 23XI and Front Row Motorsports opted for the legal route. The uncertainty generated by the demand has been a cause for concern for other teams. Although Mishkin has not reached an agreement, NASCAR is now seeking the intervention of a federal judge to mediate the conflict. The judicial conciliation conference seeks to have a judge help direct the conversations and offer a perspective on how a jury might interpret NASCAR’s complex antitrust case. All parties, including Michael Jordan, have expressed their willingness to reach an agreement, although they have also shown themselves prepared to go to trial if necessary.