While the legal aspects of the 23XI and Front Row Motorsports lawsuit are interesting, the drama of the matter has carried the bulk of the conversation between fans. Wednesday afternoon, 23XI and FRM filed a preliminary injunction. In doing so, several documents are public because of this filing. Notably, letters between 23XI and NASCAR. Here are the highlights from each letter between the two parties.
NASCAR has been granted an extension, with the new date set for Nov. 4.
These letters are exhibits from the injunction filed on Thursday.
The first letter is from 23XI to NASCAR, specifically to NASCAR President Steve Phelps. The letter, co-signed by 23XI co-owners Michael Jordan and Denny Hamlin, lays out its claims as to why they feel NASCAR did not allow 23XI a fair opportunity to negotiate.
The claims mostly concern the fact that NASCAR has not attempted to negotiate with the Team Negotiating Committee since February. Furthermore, 23XI claims that NASCAR has not met with 23XI since May 5.
The major factor in this claim is that NASCAR would rather negotiate team-to-team rather than the TNC as a whole. This letter also outlines what 23XI wants to change in the proposed final Charter Agreement.
These changes included protection from NASCAR’s increasing fees and costs and a meaningful share of revenue from NASCAR utilizing its intellectual property.
The majority of these concerns, including the two mentioned above, are also listed in the final lawsuit.
In a Sept. 11 response from NASCAR, President Steve Phelps laid the ground for its stance on the matter.
In response to NASCAR’s decline of 23XI’s wants in the May 5 meeting, NASCAR claimed that this is just a part of the negotiation. Likewise, NASCAR offers in this letter to meet with 23XI on Sept. 13, the Friday before the Watkins Glen Playoff race weekend.
The most important part of this letter is a detailed list of important dates from the charter negotiations.
One notable point is that NASCAR claimed on Sept. 6 that they did warn teams that they were sending them a charter agreement for signing rather than sending it without warning.
On Sept. 13, notably the date NASCAR wanted to meet, 23XI responded with a letter stating their disappointment with NASCAR’s “take-it-or-leave-it” agreement from Sept. 6.
This letter includes a powerful quote regarding NASCAR’s claim that not agreeing is just how negotiating works, “While we do not disagree that “[o]ne party not agreeing to the other party’s proposed changes is not,” in and of itself, “a failure to negotiate in good faith,” the use of monopoly power to impose non-negotiable terms on those who depend on you for a competitive opportunity is without question bad.”
23XI also reiterates its disappointment in NASCAR’s refusal to negotiate with the TNC. Most importantly, 23XI continued to state that they were willing to return to the negotiating table.
In NASCAR’s reply to 23XI, NASCAR responds to 23XI’s claims about the TNC, claiming they left the negotiating table after the TNC would not move on from more revenue sharing and “increased governance rights.”
A major point from this final letter is a list of responses to the list of wants lined out in 23XI’s Sept. 6 letter. One very important note is in regard to 23XI co-owner Michael Jordan’s NIL rights, stating:
“If there are concerns regarding use of Michael Jordan’s name and likeness in promotional materials, then we would be happy to discuss those uses.”
These letters are just the surface of what we will learn about this lawsuit. As time goes on, more evidence will be made public, and in doing so, paint a better picture of this crucial moment in NASCAR history.
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