Michael Jordan’s 23XI Racing Pursues F1 Financial Data for NASCAR Lawsuit

Michael Jordan’s 23XI Racing seeks financial data from Formula One to aid an antitrust lawsuit against NASCAR, focusing on charter agreements. The team requests specific financial information, arguing it will help assess potential revenue in a more favorable racing model. Despite some initial resistance from Liberty Media, the teams maintain that their requests are reasonable and manageable as they prepare for trial.

Michael Jordan’s race team, 23XI Racing, seeks financial data from Formula One to support its antitrust lawsuit against NASCAR. Co-owned by Jordan and Denny Hamlin, 23XI Racing is challenging NASCAR’s charter agreements alongside Front Row Motorsports. They have approached a federal court in Colorado to compel Liberty Media, F1’s owner, to produce sensitive financial information, including details from the influential Concorde Agreement.

The teams aim to conduct a “yardstick comparison” to assess revenue potential in a racing environment perceived to be more lucrative than NASCAR. In a parallel effort, 23XI and Front Row previously requested similar financial disclosures from professional leagues such as the NFL, NBA, and NHL. Despite narrowing their initial request from February, the teams assert that F1 has declined to provide the required documents without justification.

The specific information requested regarding F1 includes categories such as revenue sharing between F1 and its teams, the percentage formula for revenue distribution, shared revenue amounts, team valuations, and the governing Concorde Agreement. Notably, they have avoided demanding personal communications from F1 executives, focusing instead on sufficient documents to substantiate their claims.

Earlier, Liberty Media described the initial subpoena as “overboard,” citing the request for sensitive documents that could reveal trade secrets and proprietary information. The company emphasized its lack of involvement in the NASCAR litigation and the perceived heavy burden posed by the request. However, the racing teams contend that their requests are reasonable and concentrated on available regulatory documents rather than exhaustive disclosures.

The Concorde Agreement itself is highly confidential, with strict protections on its details and revenue sharing practices. Nevertheless, the teams believe there are legal avenues to obtain these documents through court-ordered confidentiality measures that limit access to authorized parties only. As part of their ongoing legal action, 23XI Racing and Front Row Motorsports are currently in the discovery phase, with a trial set to commence on December 1, having secured a preliminary injunction that enables them to race under charter agreements while litigation is in progress.

In summary, Michael Jordan’s 23XI Racing seeks crucial financial information from Formula One to substantiate its antitrust lawsuit against NASCAR. The request focuses on essential categories of financial data to compare potential revenues, as the teams challenge charter agreements they consider unfavorable. Despite Liberty Media’s initial resistance, the teams believe their requests are justified and manageable, and they continue to prepare for a trial scheduled for December 1.

Original Source: www.nytimes.com