NASCAR Seeks to Mediate Antitrust Lawsuit with 23XI Racing and Front Row Motorsports
NASCAR has requested a judicial settlement conference from a federal court in relation to the antitrust lawsuit 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 23XI and Front Row teams submitted a document on Monday night, expressing their desire to continue working with mediator Jeffrey Mishkin.The teams argue that Mishkin “has significant experience in complex antitrust disputes related to sports” and has acted as an arbitrator or mediator in various 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, known as the “charter” system, which guarantees owners positions in the competition and an annual income base. This system, according to NASCAR, has generated more than $1.5 billion in capital value for its teams since 2016. A year ago, 13 of the 15 teams renewed their contracts, but 23XI and Front Row Motorsports decided to take the matter to court. For months, other teams have expressed concern about the uncertainty that the demand generates for the future of NASCAR. Given the lack of progress in negotiations with Mishkin, NASCAR is now seeking for a federal judge other than the one presiding over the case, Judge Kenneth Bell, to intervene in the talks. Last week, most of NASCAR’s top teams filed statements in favor of an agreement and the protection of the franchise system, a fact that NASCAR highlighted in its presentation Monday night to the U.S. District Court for the Western District of North Carolina. NASCAR indicated that the willingness of the parties to resolve the matter, along with the interest of others in the sport and the court, suggests that a judicial settlement conference would be a significant way to facilitate a settlement. While both parties have shown a willingness to negotiate, no significant progress has been made. Through a judicial conciliation conference, NASCAR hopes to involve a judge who can guide the conversations and offer a perspective on how a jury might interpret the complex antitrust case. NASCAR’s request must be approved by the court. All parties involved, including Michael Jordan, have expressed their openness to an agreement. Jordan stated that, if necessary, he is willing to go to trial for the benefit of the sport.Mr. Mishkin has invested a great deal of time in learning about this case and meeting with the parties.
23XI and Front Row
