Michael Jordan’s 23XI Racing seeks critical financial documents from F1 to bolster their antitrust lawsuit against NASCAR, focusing on charter agreements. They request information pertaining to shared revenues and the Concorde Agreement. Despite F1’s initial refusal, the teams argue that their requests are reasonable and non-burdensome. The outcome may influence financial structures in racing.
Michael Jordan’s race team, 23XI Racing, is seeking vital financial information from Formula One (F1) to support its antitrust lawsuit against NASCAR. Co-owned by Jordan and Denny Hamlin, 23XI is contesting NASCAR’s charter agreements, which they argue resemble franchise models. Along with Front Row Motorsports, they have filed a motion in a federal court in Colorado requesting that Liberty Media, the owner of F1, disclose five essential categories of financial data, including the Concorde Agreement governing F1’s commercial operations.
The teams aim to conduct a “yardstick comparison” to analyze potential revenue that would be earned in a racing circuit purported to have a more advantageous business framework than NASCAR. In addition to F1, they also sought similar information from major leagues such as the NFL, NBA, and NHL in a previous court filing. The teams’ latest motion states that F1 has “refused to produce the requested information,” despite subsequently refining their initial request submitted in February.
Specifically, the requested data from F1 includes information regarding revenues shared between F1 and its teams, the formula for determining revenue shares, the amount of revenue distributed, the valuations of F1 teams, and the highly confidential Concorde Agreement. Notably, the teams clarified that they are not demanding custodial email searches but rather documents that would satisfactorily address their inquiries.
Liberty Media characterized the legal request as “overboard,” indicating that it sought sensitive documents pertaining to trade secrets and confidential information protected by law. The company asserted its lack of connection to the NASCAR dispute and highlighted the request’s substantial burden. Contrary to this, the teams contended that their requests are both modest and focused on publicly available documents relevant to salary cap and government regulations.
Although the requested documents are confidential, legal avenues may exist to navigate this challenge. The motion articulates that concerns regarding confidentiality could be mitigated by classifying sensitive documents under a court-ordered Protective Order, restricting access solely to legal counsel, experts, and the court. The ongoing discovery phase for the lawsuit is set to culminate in a trial commencing on December 1. Meanwhile, the race teams successfully secured a preliminary injunction allowing them to compete as charter teams this season during the litigation, ensuring their participation in each race and the associated financial rewards for 2025.
In summary, Michael Jordan’s 23XI Racing is actively pursuing significant financial documents from Formula One to substantiate its antitrust lawsuit against NASCAR, challenging the latter’s charter agreements. This legal maneuver aims to compare revenue opportunities between the two racing circuits, leveraging the insights from F1’s business model. The outcome of this request and ongoing litigation could potentially reshape elements of competitive racing and financial structures within the sport.
Original Source: www.nytimes.com
