Michael Jordan’s 23XI Racing seeks F1 financial data to bolster its antitrust case against NASCAR. They aim to examine revenue sharing and governance models to compare with NASCAR’s charter agreements. The team has requested essential financial documents from F1, asserting that their requests are reasonable and not an undue burden. The trial is scheduled for December 1, following a preliminary injunction that allows them to race as charter teams.
Michael Jordan’s racing team, 23XI Racing, is pursuing sensitive financial information from Formula One (F1) to support its antitrust lawsuit against NASCAR. The team, co-owned by Jordan and Denny Hamlin, along with Front Row Motorsports, claims that NASCAR’s charter agreements are akin to a franchise system. They have filed with a Colorado federal court to compel Liberty Media, the owner of F1, to provide critical financial data, including details of the Concorde Agreement, which governs the sport’s commercial structure.
The lawsuit emphasizes the need for a “yardstick comparison” to assess the revenue potential within a racing league believed to have a more advantageous business model than NASCAR. Alongside F1, 23XI Racing and Front Row had also sought similar financial information from the NFL, NBA, and NHL in a previous filing.
In their recent motion, the teams expressed frustration with F1’s lack of cooperation, asserting that the organization has “refused to produce the requested information” despite their efforts to refine their demands. The motion specifies five key pieces of information concerning F1’s financial arrangements: the division of revenue between F1 and its teams, the formula for revenue sharing, the overall revenue split, team valuations, and the confidential Concorde Agreement.
Liberty Media initially deemed the request as excessively broad, citing potential breaches of trade secret laws and the substantial burden it would impose. Nevertheless, the racing teams countered that the requests were manageable and concentrated on easily accessible documents rather than exhaustive searches through executives’ emails.
Despite the confidential nature of the documents sought, the teams believe legal measures exist to mitigate confidentiality concerns through protective orders. They are currently in the discovery phase for their trial, set to commence on December 1. A prior preliminary injunction allows them to compete as charter teams while the case progresses, ensuring their eligibility for financial rewards in the upcoming season.
This pursuit of F1 financial data highlights an ongoing struggle to challenge established arrangements in stock car racing, underscoring the broader implications for competitive equity within the motorsport industry.
In summary, 23XI Racing is actively seeking crucial financial disclosures from Formula One as part of its antitrust litigation against NASCAR. This initiative underscores the complexities of revenue sharing in professional racing leagues and highlights the team’s strategy to establish a comparative analysis with F1’s model. While Liberty Media has resisted these requests due to confidentiality concerns, the teams assert their pursuit is reasonable and targeted. The outcome of this legal battle may significantly impact the landscape of NASCAR and its operational frameworks.
Original Source: www.nytimes.com
