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In a continuing legal battle, 23XI Racing and Front Row Motorsports have intensified their efforts to persuade various sports leagues to comply with subpoenas related to their lawsuit against NASCAR. A notable motion was filed in the US District Court of Colorado on April 7, requesting that Liberty Media, the parent company of Formula 1, provide documents deemed critical for the teams’ legal challenge against the governance of NASCAR by the France family.
The teams are seeking financial details from the owners of Formula 1 as part of their strategy to gather comparative data on how other racing series operate. This data will assist in their assertion that the France family has been managing NASCAR in a way that constitutes an unlawful monopoly, thus violating antitrust regulations. This legal approach is often referred to as the ‘yardstick method,’ which is utilized to demonstrate economic damages in similar lawsuits.
Mohammed Ben Sulayem, President of FIA; Greg Maffei, CEO of Liberty Media
Photo by: Simon Galloway / Motorsport Images
Liberty Media’s response involves a demand for exhaustive revenue breakdowns across numerous categories that make up the financial landscape of Formula 1. This includes how revenues are shared amongst Formula 1 and its ten teams, as well as a request for the complete text of the Concorde Agreement—an essential contract that delineates the financial relationships between F1, the FIA, and the teams.
Specific Requests from 23XI and FRM
In particular, 23XI Racing and Front Row Motorsports have outlined their request for information on various revenue streams related to Formula 1, such as broadcasting, sponsorship, ticket sales, seat licensing, concessions, merchandise, intellectual property, expansion fees, franchise sales, gaming revenues, venues, online programming, and signage rights. The detailed filing emphasizes the necessity of documentation regarding:
– The total number of tickets sold for each Formula 1 and team event, attendance figures, and broadcast ratings during relevant time frames.
– Revenue generated or expected from the teams’ intellectual property.
– Financial value derived from the sale or control change of any Formula 1 teams throughout the specified period.
– Any research, studies, or evaluations related to team valuations or the value of charters, franchises, and licenses during the relevant time frame.
– Copies of all Concorde Agreements negotiated and active during the relevant period.
– The constitutions, bylaws, and various rulebooks concerning financial arrangements and operational guidelines in Formula 1.
Max Verstappen, Red Bull Racing leads at the start
Photo by: Bryn Lennon – Formula 1
In addition to targeting Liberty Media, 23XI Racing and Front Row Motorsports have also filed motions in the US District Court of New York City, urging the NFL, NBA, and NHL to provide similar financial disclosures.
Context of the Dispute
23XI Racing, co-owned by NBA icon Michael Jordan and renowned NASCAR driver Denny Hamlin, aligned with Front Row Motorsports to combat what they perceive as inequitable conditions outlined in NASCAR’s 2025 Charter Agreement. Their refusal to endorse this agreement led to the filing of an antitrust lawsuit in September of the previous year, claiming that NASCAR operates as a monopoly. The France family, which has overseen NASCAR since its creation in 1948, is accused of maintaining “anti-competitive and monopolistic control” over the sport.
Denny Hamlin, Michael Jordan
Photo by: Chris Graythen – Getty Images
While a trial date remains months away, 23XI Racing and Front Row Motorsports have sought to retain control over their charters, successfully achieving a preliminary injunction in December of last year. NASCAR has countered with its own lawsuit, alleging that the plaintiff teams engaged in an unlawful conspiracy and violated the Sherman Antitrust Act.
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