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NASCAR Teams Have Hired A Top Antitrust Attorney In Their Revenue Dispute. Here’s What It Means
The NASCAR season has begun, with 38 races to select another stock car racing champion in the 76th season of the main motorsports series in the United States.
There is a significant issue for NASCAR and its teams: negotiations on a new revenue-sharing plan have stalled. In mid-February, officials from five teams notified The Associated Press that they had recruited renowned antitrust sports lawyer Jeffrey Kessler as an adviser.
The action was a power play by the 15 teams with the 36 charters that ensured entry into every race, sending a message that they would not be intimidated in negotiations. Here’s what you need to know about this off-track battle worth millions:
Charters are comparable to NASCAR franchises, but the series can withdraw them at any time. The current market rate determines their worth, but the specifics are not publicised. Live Fast Motorsports reportedly paid $40 million for a charter that Spire Motorsports bought last year, a significant increase from the $6 million Spire Motorsports paid in 2018 when it became the first team to purchase a charter from another team.
NASCAR chose which teams were granted charters in 2016. Four charters have yet to be offered for sale and are being held by NASCAR for use if a fourth manufacturer joins the Cup Series.
The present pact expires after the season, and teams have been negotiating with NASCAR for two years to get a better deal, including making the charters permanent.
NASCAR stated it needed to finish a new media rights package first, and a new $7.7 billion broadcast rights agreement was revealed in December. NASCAR’s economic offer to the teams arrived shortly after that.
The five-person negotiation committee for the race teams told the Associated Press that NASCAR was clear: “We’ve been informed, ‘This is all there is; there is no flexibility.’ “That is not a negotiation,” said Curtis Polk, co-owner of 23XI Racing with Michael Jordan and Denny Hamlin.
NASCAR’s Financial Health
NASCAR’s stability has ebbed and flowed for years, with significant emphasis on empty seats in the bleachers and viewing figures from season to season. The series has been through it all, and the TV contract is deemed significant.
According to a recent S&P Global Ratings report, NASCAR will continue to see strong growth in live attendance, sponsorship, and advertising-related revenue this year, and the new rights deal “provides good revenue visibility” until 2031.
The report also raised its credit rating for NASCAR, highlighting the series’ capacity to pay down debt while increasing revenue. This year, NASCAR’s earnings before interest, taxes, depreciation, and amortisation are expected to climb by 6% to 8%, according to Standard & Poor’s.
S&P also anticipates a positive cash flow of $135 million to $145 million, which could be lowered to $85 million following infrastructure repairs and utilised to reduce debt further.
Polk stated that the data demonstrates that NASCAR is financially solid and has had minimal difficulty repaying the almost $1.5 billion borrowed in 2019 to take its racetracks private.
“The rating agencies have upped NASCAR to a better rating based on the health of NASCAR,” Polk said in a statement. “NASCAR’s debt is now reduced to around $400 million. They repaid $1 billion in debt in less than five years.
WHAT IS THE ISSUE?
The teams seek more than simply a bigger financial stake.
In addition to a rise in the proportion of the television rights deal, the teams want the charters to be permanent, as they are in other leagues. With so many of NASCAR’s top team owners in their 70s (Roger Penske turned 87 this week), they want their investments to be legacies for their families.
NASCAR has declined to contemplate making the charters permanent.
The teams also want to have a say in governance and foster a collaborative environment to generate new revenue prospects.
WHAT CAN TEAMS DO?
The teams are unaffiliated with NASCAR, which regulates the 38 races each year and provides payouts and cash from licencing, merchandise, and other sources. It also owns several top-tier tracks.
The teams wish to refrain from launching their breakaway series, noting CART’s downfall when Tony George removed the Indianapolis 500 and founded a competing league. Two open-wheel racing series could not be sustained. Thus, they merged in 2008 to form IndyCar. However, the damage had already been done: NASCAR bypassed what was formerly the leading US motorsports series during the split.
Currently, the teams do not intend to promote a race outside of NASCAR’s supervision. They want to strike a deal.
Teams could legally go on strike and cease turning up at the track, but it makes no financial sense, and NASCAR would most likely fill a field with teams from a stock car league it does not currently own.
Who is Jeffrey Kessler?
The attorney specialises in sports labour and antitrust conflicts. In 2021, he helped obtain a 9-0 victory at the United States Supreme Court in NCAA v. Alston, a significant issue on athlete remuneration. He also led the United States women’s soccer team in its winning fight for equal pay and lawsuits against the NBA and NFL’s current free agent rules.
Although employing Kessler could imply that the teams are considering litigation, the negotiating representatives said the attorney was hired to advise them during discussions.
The Race Team Alliance convened at Daytona International Speedway; NASCAR failed to attend, and the teams say NASCAR is no longer negotiating with them collectively. Instead, they feel NASCAR is attempting to communicate with teams individually to create division among what is now a unified front.
WHAT IF A DEAL IS NOT ACHIEVED?
NASCAR could completely overhaul the eligibility system and develop its income distribution guidelines. NASCAR does not have a collective bargaining agreement for teams, and the RTA, founded to fight this struggle, is not a union.
The teams might file an antitrust lawsuit challenging NASCAR’s market dominance, arguing that NASCAR operates stock car racing as a monopoly.
But NASCAR has already won legal battles, including a 2009 case in which Kentucky Speedway failed to demonstrate that its refusal to host a Cup Series race constituted an illegal monopoly.
SOURCE – (AP)
News
Britain Must Be Ready for War in 3 Years, Warns New Army Chief
The new head of the Army has stated that Britain must be prepared to fight a war within three years.
Gen Sir Roland Walker has issued a warning about a variety of risks in what he calls a “increasingly volatile” environment.
However, he stated that war was not inevitable and that the Army had “just enough time” to prepare to prevent conflict.
He stated that the Army’s fighting capacity would be doubled by 2027 and tripled by the end of the decade.
Gen Walker warned that the Britain was under threat from a “axis of upheaval” in his first speech as Prime Minister on Tuesday.
Among the primary concerns confronting the Britain in the next years, as noted by the general in a briefing, is an enraged Russia, which may seek vengeance on the West for helping Ukraine, regardless of who wins the war.
He stated: “It doesn’t matter how it finishes. I believe Russia will emerge from it weaker objectively – or completely – but still very, very dangerous and seeking some form of retaliation for what we have done to assist Ukraine.”
Britain’s Government Defence Review and Military Challenges
He also warned that China was determined to retake Taiwan, and Iran was likely to seek nuclear weapons.
He stated that the threats they posed may become particularly acute in the next three years, and that these countries had formed a “mutual transactional relationship” since the war in Ukraine, sharing weaponry and technology.
However, he stated that the path to conflict was not “inexorable” if the UK re-established credible land troops to assist its deterrent strategy for avoiding war.
In his speech, he described his force of slightly over 70,000 regular troops as a “medium-sized army” and made no direct call for additional resources or men.
However, he pushed the British Army to adapt swiftly, focussing on technology such as artificial intelligence and weaponry rather than numbers.
His ultimate goal is for the Army to be capable of destroying an opponent three times its size.
This would entail firing quicker and farther, he said, aided by lessons learnt from the Ukraine war.
The general’s speech at the Royal United Services Institute land warfare conference comes only one week after the government began a “root and branch” defence review to “take a fresh look” at the challenges facing the armed services.
Defence Secretary John Healey launched the assessment, describing the existing status of the armed forces as “hollowed-out” and stating that “procurement waste and neglected morale cannot continue”.
According to the most recent Ministry of Defence (MoD) numbers from April 2024, the Britain’s regular Army forces total 75,325 troops (excluding Gurkhas and volunteers).
That figure has been declining in recent years, as recruiting has failed to match retention. The previous Conservative administration lowered the planned headcount from 82,000 to 72,500 by 2025.
Members of the NATO military alliance have agreed to spend at least 2% of GDP on defence by 2024, but several countries are unlikely to fulfil this goal.
The Britain presently spends 2.3% of its GDP on defence. Prime Minister Sir Keir Starmer has previously stated that the defence review will include a “roadmap” for increasing this to 2.5%, however he has yet to provide a date for this promise.
Source: BBC
News
Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal
PARIS — Katie Ledecky is looking for clean Olympic races. On Wednesday, Hope had pretty much reached her limit.
The American swimmer hopes to add to her six gold medals as she competes in the 400, 800, and 1,500 meters at the Paris Games. Her program starts with the heavy 400 on Saturday, featuring Ariarne Titmus and Summer McIntosh.
Katie Ledecky | ESPN Image
Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal
The 27-year-old Katie is competing in her fourth Summer Olympics, but the first since a doping scandal involving almost two dozen Chinese swimmers who tested positive for a banned chemical before the Tokyo Games — yet were permitted to compete with no consequences. The controversy has raised serious worries regarding the effectiveness of anti-doping initiatives.
Katie Ledecky | Vogue Image
“I hope everyone here is going to be competing clean this week,” Ledecky claimed. “But what truly counts is, were they training cleanly? Hopefully this has been the case. Hopefully, there has been worldwide testing.”
The International Olympic Committee has expressed concern over the ongoing US investigation into possible doping by Chinese swimmers. While awarding the 2034 Winter Olympics to Salt Lake City on Wednesday, the IOC urged Utah officials to do whatever they could to stop the FBI investigation.
“I think everyone’s heard what the athletes think,” Katie added. “They seek transparency. They want more answers to the remaining questions. At this point, we are here to race. We are going to race whoever is in the lane next to us.
“We are not paid to conduct the tests, so we trust those who follow their regulations. That applies both today and in the future.
Katie Ledecky | ESPN Image
Katie Ledecky Hopes For Clean Races At Paris Olympics In The Aftermath Of The Chinese Doping Scandal
SOURCE | AP
News
London Heatwave Alert: High Temperatures Set to Soar to 29C Next Week
As the summer holidays begin, London may experience an official heatwave with temperatures reaching up to 29 degrees Celsius.
The Met Office predicts a long period of sunny and dry weather for London after a soggy spring and summer.
After a cloudy day on Saturday, temperatures are expected to reach 27C on Sunday, with lots of sunlight.
On Monday and Tuesday, temperatures are forecast to peak at 29 degrees Celsius. Monday is forecast to offer more sunlight, while Tuesday may see some gloomy weather.
Temperatures are expected to remain in the high 20s next week, with lows of approximately 18C.
According to the Met Office, a heatwave is “an extended period of hot weather relative to the expected conditions of the area at that time of year, which may be accompanied by high humidity.”
In the United Kingdom, a heatwave is proclaimed when daily temperatures meet or surpass a certain level for at least three consecutive days.
In London, the heatwave threshold is 28 degrees Celsius.
The Met Office reported that the UK is experiencing hotter and wetter weather on average due to climate change.
The UK experienced its warmest May and April on record this year, despite damp and dismal conditions in many areas.
According to the Met Office’s State Of The UK Climate 2023 report published on Thursday, the UK experienced historic levels of extreme weather last year.
In the United Kingdom, 2023 was the second warmest year on record, bringing storms, flooding, strong heatwaves, and rising sea levels; only 2022 was warmer.
It was 0.8°C higher than the average from 1991 to 2020, and 1.66°C higher than the 1961 to 1990 average.
However, 2023 will be a “cool year” in comparison to 2100, based on the planet’s warming trajectory.
The government’s plan to adapt to the hazards presented by climate change is currently being challenged in the High Court by campaigners who allege the Tory administration’s July 2023 National Adaptation Programme (NAP) fails to adequately address 61 concerns.
Source: The Standard
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