NASCAR has requested a judicial conference from a federal court for the resolution of the antitrust case filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. The request seeks an independent judge to mediate the dispute. In response, the teams submitted a document on Monday night, expressing their desire to continue working with Jeffrey Mishkin, who has been negotiating between the parties for the year.
The teams argued that Mishkin possesses “significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator in major sports organizations. Furthermore, it was pointed out 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. The hearing on this motion is scheduled for October 21. The core of the dispute is the protection of NASCAR’s franchise system, known as the charter system, which is fundamental to the organization’s business model. This system guarantees owners a place in the competition and an annual income base, which, according to NASCAR, has generated more than $1.5 billion in value for the teams since 2016. A year ago, 13 of the 15 teams renewed their agreements, believing that the negotiations of more than two years would not lead to a better deal. 23XI, co-owned by Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, chose to go to court.“Mr. Mishkin has invested a great deal of time in learning about this case and meeting with the parties,” 23XI and Front Row said 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
For months, the other 13 teams have privately expressed concern about the uncertainty the lawsuit is creating about the future of NASCAR. Mishkin has failed to make progress toward a settlement, and NASCAR is now seeking for 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 in favor of an agreement and the protection of the charter system, as NASCAR noted in its filing Monday night with the U.S. District Court for the Western District of North Carolina. NASCAR hopes a court conference will facilitate a settlement. All parties have shown a willingness to negotiate, but no progress has been made. Through a court conference, NASCAR hopes a judge 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, including Jordan, have expressed their openness to an agreement.
“I’m looking forward to fighting until the end. If I have to fight until the end, for the good of the sport, I will,” he said outside the federal court. “We’ve always been open to a settlement. We always have been. We’ve never taken that off the table.”
Michael Jordan
