NASCAR Seeks New Mediator in Antitrust Lawsuit with 23XI Racing

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

In a recent move, NASCAR has requested a settlement conference from a federal court to mediate the antitrust lawsuit filed by 23XI Racing, owned by Michael Jordan, and Front Row Motorsports. However, the 23XI Racing and Front Row Motorsports teams have expressed their desire to continue working with mediator Jeffrey Mishkin, former executive vice president and general counsel of the NBA, who has been negotiating between the parties for the past year.

“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 filing. “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 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 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 as 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 is the protection of NASCAR’s franchise system, which is fundamental to its business model. This system guarantees team owners positions in the competition and a base amount of annual income, creating a value of over $1.5 billion for the teams since 2016, according to NASCAR. 23XI, co-owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, decided to go to court. NASCAR hopes a settlement conference will facilitate an agreement, involving a judge who can guide the conversations and offer a perspective on how a jury might interpret the complex antitrust case. All parties have expressed their willingness to reach an agreement, including Michael Jordan, who also stated that he is willing to take the case to trial if necessary.