CHARLOTTE, N.C. (AP) — NASCAR has asked a federal court for a judicial settlement conference so that an independent judge can mediate the antitrust suit filed by Michael Jordan-owned 23XI Racing and Front Row Motorsports.
The two teams pushed back in their own late Monday night filing that it wants to continue working with mediator Jeffrey Mishkin, the former executive vice president and chief legal officer of the NBA who has been negotiating between
the two sides this year.
“Mr. Mishkin has invested a great deal of time learning this case and meeting with the parties,” 23XI and Front Row said in the filing. "Plaintiffs have thus requested that NASCAR continue to engage with them via Mr. Mishkin or to make a settlement offer directly to Plaintiffs’ counsel, but NASCAR has not responded to those requests and instead filed this motion.
“It seems NASCAR is not happy with the diagnosis and wants to seek a second opinion.”
The teams argued Mishkin “has significant expertise in complex, sports-related antitrust disputes and has served as an arbitrator or mediator for the international Court of Arbitration for Sport, the America’s Cup, FIFA, and the NFL, among others.”
The teams also argue that “starting over” with a new mediator is "less likely, not more likely, to lead to resolution."
The dueling motions come as NASCAR seeks a summary judgement to dismiss the case before the scheduled Dec. 1 start of trial. A hearing on that motion is scheduled for Oct. 21.
At issue is the protection of the charter system that is at the heart of NASCAR’s business model and the focal point of the court fight. The charter system is NASCAR’s version of a franchise model. A charter guarantees owners 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, co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by entrepreneur Bob Jenkins, went to court instead.
For months, the other 13 teams have privately complained that the lawsuit is creating uncertainty over the future of NASCAR. Mishkin has made no 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.
Most of the top teams in NASCAR last week submitted declarations calling for a settlement and protection of the charter system, which NASCAR noted in its Monday night filing to the U.S. District Court for the Western District of North Carolina.
“The parties’ readiness to resolve this matter, along with the interests of others in the sport and the Court to see this case resolved, suggest a judicial settlement conference would be a meaningful way to facilitate a settlement," NASCAR wrote.
Both sides have shown a willingness to talk, but no progress has been made.
Through a judicial settlement conference, NASCAR hopes to bring in a judge who can help direct the talks and offer insight into how a jury might interpret the complex NASCAR antitrust case.
The court must approve NASCAR’s request.
All sides have said they are open to settlement, including Jordan, who also added after an August hearing he was willing to take it to trial if necessary.
“I look forward to going down with the fire. If I have to fight this to the end, for the betterment of the sport, I will," he said outside federal court. "We’ve always been open to a settlement. Always have been. We’ve never taken that off the table.”
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