NASCAR has requested a 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 responded on Monday night, arguing that they want 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 this year.
The teams argued that Mishkin has “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator for various organizations. The opposing motions come as NASCAR seeks a summary judgment to dismiss the case before the trial begins, scheduled for December 1. The hearing on that motion is scheduled for October 21. The issue at hand is the protection of the franchise system, which is the core of NASCAR’s business model and the central point of the legal dispute. The franchise system guarantees team owners positions in the competition and a base amount of income each year. According to NASCAR, it 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.Mr. Mishkin has invested a great deal of time learning about this case and meeting with the parties.
23XI and Front Row
Both parties have shown their willingness to talk, but no progress has been made. Through a judicial conciliation conference, NASCAR hopes to bring in a judge who can help direct the conversations and offer information on how a jury might interpret NASCAR’s complex antitrust case. The court must approve NASCAR’s request. 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.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.
NASCAR
I hope to go with fire. If I have to fight until the end, for the benefit 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
