Michael Jordan’s race team, 23XI Racing, is pursuing sensitive financial data from Formula One to support its antitrust lawsuit against NASCAR. The request focuses on the Concorde Agreement and revenue-sharing structures, establishing a foundation for a comparison of business models between NASCAR and F1. The legal proceedings are set to continue, with a trial scheduled for December 1.
Michael Jordan’s race team, 23XI Racing, is requesting Formula One to disclose sensitive financial information to assist in an ongoing antitrust lawsuit against NASCAR. Co-owned by Jordan and Denny Hamlin, 23XI Racing, along with Front Row Motorsports, contends that NASCAR’s charter agreements resemble a franchise system. The team is now urging a federal district court in Colorado to compel Liberty Media, the owner of F1, to provide critical financial data, including the famed Concorde Agreement, which governs commercial and governance aspects of the sport.
The filing emphasizes 23XI Racing and Front Row’s intention to conduct a “yardstick comparison” of their expected revenues in F1, which they assert operates under a more favorable business model than NASCAR. Additionally, these teams have sought similar financial information from the NFL, NBA, and NHL in a separate filing made in New York last March. The recent motion alleges that F1 has “refused to produce the requested information” even after the teams narrowed their original request.
The information sought from F1 includes specific financial details such as revenue sharing arrangements, the calculation formula for revenue split percentage, total revenues shared or retained by both F1 and its teams, current and expansion valuations of F1 teams, and the confidential Concorde Agreement. The scope of the request is limited to documents that can demonstrate the basis for the teams’ inquiries without demanding extensive custodial email searches.
Liberty Media previously labeled the subpoena as “overboard,” citing concerns about sensitive documents that could potentially disclose trade secrets or confidential financial information. The company remarked on its lack of involvement in the NASCAR litigation and noted the implications of the request’s burden. In response, the teams contend that their requests are reasonable and specifically targeted towards accessible salary cap and governance documents.
Despite the sensitive nature of the requested information, the motion suggests that legal mechanisms exist to mitigate confidentiality issues. The teams propose that any disclosed documents could be marked as highly confidential, restricting access to counsel, experts, and the court. Presently, 23XI Racing and Front Row are engaged in the discovery phase of their trial scheduled to commence on December 1. They successfully obtained a preliminary injunction permitting them to compete as charter teams this season, securing guaranteed entries and financial rewards for the upcoming year.
The ongoing legal battle between 23XI Racing, Front Row Motorsports, and NASCAR has prompted the former teams to seek crucial financial information from Formula One. This information is pivotal in establishing the economic viability of their operations compared to NASCAR. As the discovery phase progresses, both teams strive to ensure competitive parity while navigating the complex landscape of racing regulations and financial agreements.
Original Source: www.nytimes.com
