Michael Jordan’s 23XI Racing is seeking sensitive financial data from F1 to support an antitrust lawsuit against NASCAR. Key aspects include requests for the Concorde Agreement and revenue-sharing specifics, asserting that the F1 model may be more favorable than NASCAR’s. The teams’ legal strategy highlights issues of confidentiality and access to critical business information.
Michael Jordan’s race team, 23XI Racing, is pursuing sensitive financial information from Formula One (F1) to support its antitrust lawsuit against NASCAR. Co-owned by Denny Hamlin, the team is contesting NASCAR’s charter agreements alongside Front Row Motorsports. They have filed a motion in Colorado, asking a federal district court to compel Liberty Media, F1’s owner, to release key financial documents, including the Concorde Agreement, which outlines F1’s commercial and governance structure.
The teams aim to make a “yardstick comparison” to assess potential revenue in F1, which they claim operates under a more favorable business model than NASCAR. They have also sought similar financial disclosures from the NFL, NBA, and NHL in a previous New York filing. The latest filing alleges that F1 has refused to comply with their requests despite their narrowed focus made on February 19.
The specific information requested from F1 includes:
1. Breakdown of shared revenues (media rights, tickets, concessions, etc.) between F1 and the racing teams.
2. The formula defining the revenue share percentage.
3. Total revenue shared or retained by F1 and the teams.
4. Valuations of current and expansion F1 teams.
5. The Concorde Agreement governing F1’s operations.
The motion clarifies that the teams are not demanding extensive custodial searches for emails but are limiting their request to documents that provide sufficient evidence for their inquiries. Liberty Media previously criticized the request as overly broad, claiming it involves sensitive material protected by trade laws.
Despite these concerns, the teams assert that their demands are reasonable and focused on publicly accessible information, such as salary cap and governing documents. The Concorde Agreement, however, remains confidential and is shielded by privacy agreements.
The motion also suggests that confidentiality can be managed by labeling sensitive documents as highly confidential under a Protective Order, ensuring limited access only to authorized parties. Currently, 23XI and Front Row are in the discovery phase of their trial, set to begin on December 1, during which they have secured a preliminary injunction to participate as charter teams this season, ensuring their financial incentives for 2025.
The F1 subpoena details were first reported by TobyChristie.com, with the broader major league filings disclosed by Fox Sports.
In summary, Michael Jordan’s 23XI Racing is actively seeking financial information from Formula One to bolster their antitrust case against NASCAR. Key categories involve revenue-sharing details, valuation, and the Concorde Agreement. The ongoing legal battle underscores the unique dynamics of revenue models in motorsports and highlights the intersection of confidentiality and legal processes in competitive racing environments.
Original Source: www.nytimes.com
