CHARLOTTE, N.C. (AP) — NASCAR and the two teams suing it over antitrust allegations will participate in a judicial settlement conference later this month in an attempt to resolve the yearlong feud over the charter system.
The conference involving NASCAR, 23XI Racing — which co-owned by Michael Jordan and Denny Hamlin — and Bob Jenkins-owned Front Row Racing will be Oct. 21 before District Judge Kenneth Bell in the U.S. District Court for the Western
District of North Carolina.
NASCAR filed a motion Monday seeking the conference and Bell granted it Wednesday. Jeffrey Mishkin, the former executive vice president and chief legal officer of the NBA, also will participate. Mishkin has been unsuccessful in previous attempts to mediate between the two sides.
Jeffrey Kessler, attorney for 23XI and Front Row, said the teams welcomed the decision "to bring all parties together to engage in a meaningful resolution.
“We remain open to a settlement that genuinely benefits the sport and its fans,” Kessler continued. “The goals my clients have raised are clear, and the teams have affirmed them in their own declarations. From the outset, our objective has been unwavering: to secure lasting stability and growth for every team, their employees, and the sport. It’s time for all parties to step up and deliver.”
The judicial settlement conference will take place two days before an Oct. 23 hearing on motions for summary judgment.
The charter system is at the heart of NASCAR’s business model and the focal point of the court fight. It is NASCAR’s version of a franchise model and a charter guarantees cars spots in the field, a base amount of revenue each year, and according to NASCAR, 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 two-plus years of negotiations would not lead to a better deal. 23XI and Front Row Motorsports went to court instead.
For months, the other 13 teams have complained privately that the lawsuit is creating uncertainty over the future of NASCAR. Most of the top teams in NASCAR last week issued declarations urging a settlement of the case while defending the charter system.
Many of the declarations also stressed the team owners want the charters to become permanent — they are currently renewable — and that issue is one of the biggest sticking points to 23XI and Front Row.
The case is currently set for a Dec. 1 start of trial.
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