In an ongoing legal battle that could reshape NASCAR's future, 23XI Racing and Front Row Motorsports are doubling down on efforts to expose what they claim is monopolistic control by the France family. Their latest move: compelling other major sports leagues to hand over sensitive financial data to support their antitrust case.
Motion to Compel Cooperation between Liberty Media and F1
The two NASCAR teams filed a motion in the U.S. District Court of Colorado against Liberty Media on April 7. The motion seeks to compel the parent company of Formula 1 to comply with an earlier subpoena that mandated the production of in-depth financial and operational documentation from F1. The broader aspect of this request is in the context of an overall legal strategy in which the teams want to juxtapose the business model of NASCAR vis-à-vis similar other prominent sports—something referred to in legal jargon as the "yardstick method." Thus, they collect data from bodies like F1 to demonstrate that NASCAR is violating antitrust law by what they refer to as an unlawful monopoly managed by the France family.
What the Teams Want from the Formula 1
The scope of the request is all-encompassing. 23XI Racing and Front Row Motorsports are now demanding to see detailed financial statements for practically every revenue-generating avenue of the Formula 1 ecosystem. Thus, asked to provide such kinds of data include:
-Broadcasting agreements
-Sponsorship contracts
-Ticket and seat licensing sales
-Concessions and Merchandise
-Intellectual property revenues
-Growth and franchise sales
-Gambling partnerships
-Internet programming
-Signage and marketing revenues
Other specific requests include:
Records on tickets sold, attendance, and television ratings during the period in question for every F1 event.
One of the detailed demands reads;
"Documents sufficient to show the Revenues and any other value which Formula 1 receives or derives from Formula 1's and Formula 1 Teams' intellectual property."
They are also looking into the changes in value of the franchise:
"Documents sufficient to show the Revenues and any other value that Formula 1, Formula 1 Team(s), or other Entities or individual(s), including owner(s) of Formula 1 Team(s), has or expects to receive or derive from the sale, expansion, or change of control of any Formula 1 Team(s) during the Relevant Time Period."
The Concorde Agreement and Governing Documents Under Spotlight
Furthermore, the teams want the entirety of the Concorde Agreements—as part of the formal contracts between F1, on the one side, and the FIA and that between the teams, on the other—which define the terms of how commercial revenue will be foregone and overall governance of the sport.
Also, part of the demanded documents includes the following:
-an internal rulebook, constitutions and/or bylaws setting forth operational and financial procedures
-Any communications or reports assessing the status of teams and the value of their charters
-Historical and current versions of the Concorde Agreement
More Than Just F1: NFL, NBA, NHL Targets Too
Liberty Media isn't the only organization catching the heat; it has filed similar motions in the U.S. District Court of New York City. 23XI and Front Row are going after the financials of the NFL, NBA, and NHL. Apparently, these leagues will also have to attest to what they did in opening up their revenue-sharing models and team ownership rights.