Michael Jordan’s 23XI Racing is requesting sensitive financial information from Formula One to support its antitrust lawsuit against NASCAR. They aim to perform a comparative revenue analysis and have filed a motion in a Colorado court to compel Liberty Media, F1’s owner, to disclose key financial documents, including the Concorde Agreement. This information is sought to bolster claims against NASCAR’s charter agreements, with trial proceedings set for December 1.
Michael Jordan’s race team, 23XI Racing, is pursuing sensitive financial data from Formula One to support its antitrust lawsuit against NASCAR. Co-owned by Jordan and Denny Hamlin, 23XI is in a legal dispute concerning NASCAR’s charter agreements, alongside Front Row Motorsports. They have requested a federal court in Colorado to compel Liberty Media, the F1 owner, to disclose essential financial details, including the Concorde Agreement, which governs the commercial aspects of the sport.
The teams aim to perform a comparative analysis to assess their potential revenue had they been part of a superior business model, such as Formula One. They previously sought similar financial information from major leagues like the NFL, NBA, and NHL in a separate filing. In their recent court motion, they asserted that F1 had unjustifiably rejected their request for information, even after the teams reduced the scope of their original inquiry.
The inquiry includes five critical financial categories related to Formula One: revenue sharing details between F1 and its teams, the formula for calculating revenue share, the current and prospective valuations of F1 teams, and the highly confidential Concorde Agreement. The teams clarified that their request did not necessitate extensive custodian email searches, focusing instead on specific documents to substantiate their case.
Liberty Media previously deemed the subpoena “overboard,” citing concerns over the sensitivity of the documents requested. However, 23XI Racing and Front Row Motorsports contended that the burden on Liberty Media was minimal, as they sought targeted documents already within F1’s purview. They emphasized that concerns regarding confidentiality could be mitigated through a court-ordered Protective Order.
Currently, the racing teams are in the discovery phase, with a trial set to begin on December 1. They secured a preliminary injunction that permits them to participate in the races as charter teams while the case unfolds, ensuring they maintain competitive entry and associated financial benefits for the upcoming season.
In conclusion, 23XI Racing’s application for Formula One’s financial disclosure highlights their strategic approach to fortifying their antitrust claims against NASCAR. By targeting specific financial information, including the Concorde Agreement, they aim to demonstrate the advantages of F1’s business model. As the legal proceedings advance towards trial in December, the outcome may significantly influence the operations and policies governing NASCAR and similar racing enterprises.
Original Source: www.nytimes.com
