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

NASCAR has requested a judicial conciliation conference before 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. Both teams responded late Monday night, arguing their desire to continue working with mediator Jeffrey Mishkin. Mishkin, former executive vice president and general counsel of the NBA, has been negotiating between the parties during this year.

“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 filing. “The plaintiffs have requested that NASCAR continue to negotiate 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 argued that Mishkin “has significant experience in complex antitrust disputes related to sports and has acted as an arbitrator or mediator for the International Court of Arbitration for Sport, the America’s Cup, FIFA, and the NFL, among others”. Furthermore, the teams maintain that “starting over” with a new mediator is “less likely, not more likely, to lead to a resolution”. These opposing motions come as NASCAR seeks a summary judgment to dismiss the case before the start of the trial, scheduled for December 1. A hearing on that motion is scheduled for October 21. The key point at issue is the protection of the franchise system, which is fundamental to NASCAR’s business model and the main focus of the litigation. This system guarantees owners positions on the grid, a base amount of income each year and, according to NASCAR, has created more than $1.5 billion in capital value for its teams since 2016. A year ago, 13 of the 15 teams re-signed, believing that more than two years of negotiations would not lead to a better deal. 23XI, co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by businessman Bob Jenkins, 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 any 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 both sides and advise on a resolution.

Last week, most of NASCAR’s top teams filed statements asking for an agreement and protection of the franchise system, something NASCAR pointed out in its filing on Monday night with the United States 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 in seeing this case resolved, suggest that a judicial conciliation conference would be a significant way to facilitate a settlement,” wrote NASCAR.

NASCAR

Both parties have shown their willingness to dialogue, but no progress has been made. Through a judicial conciliation conference, NASCAR hopes to have 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 declared 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.

“I’m looking forward to facing the fire. If I have to fight to the end, for the good of the sport, I will,” he declared outside the federal court. “We have always been open to a settlement. We always have been. We have never ruled out that possibility.”

Michael Jordan