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NASCAR Teams Have Hired A Top Antitrust Attorney In Their Revenue Dispute. Here’s What It Means

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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.

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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.

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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.

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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)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Elon Musk Launches Starlink Satellite Internet Service In Indonesia, World’s Largest Archipelago

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Elon Musk visited Bali, Indonesia: Getty Images

DENPASAR, Indonesia — On Sunday, Elon Musk visited Bali, Indonesia’s resort island, to debut Starlink satellite internet service in the world’s largest archipelago.

In a green Batik shirt, Musk was greeted with a garland of flower petals at a community health center in Denpasar, Bali’s provincial capital, where he and Indonesian politicians launched the Starlink service.

Indonesia, a large archipelago of 17,000 islands spread across three time zones with a population of over 270 million, has been attempting for years to obtain deals with Musk’s Tesla for battery investment and with Musk’s SpaceX to bring fast internet to the country’s distant parts.

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AP – VOR News Image

Elon Musk Launches Starlink Satellite Internet Service In Indonesia, World’s Largest Archipelago

During the ceremony, Musk conducted a speed test of the Starlink internet connection with many health professionals from Indonesia’s remote regions, including Aru, one of the country’s least-served and most distant islands in Maluku.

“This can make it really a lifesaver for remote medical clinics, and I think it could be a possibility for education as well,” Musk stated to reporters.

“If you have access to the internet, you can learn anything and sell your company services around the world. So, I think it’ll be quite beneficial,” he explained.

He also inked an agreement to improve connections in the country’s healthcare and education sectors. Details of the arrangement between the Indonesian government and Musk’s SpaceX, the aerospace company that operates Starlink services, were not disclosed.

According to Coordinating Minister of Maritime and Investment Luhut Binsar Pandjaitan, the launch of the service at a health clinic is consistent with Starlink’s overall aim of offering inexpensive access to high-speed internet services, particularly in underserved and distant areas.

“Our remote regions need Starlink to expand high-speed internet services, especially to help with problems in the health, education, and maritime sectors,” said Pandjaitan, a close supporter of Indonesian President Joko Widodo. He had separate conversations with Musk on Sunday.

Budi Arie Setiadi, Minister of Communication and Informatics, previously stated that local internet providers, who rely on base transceiver stations to transmit signals, are unable to reach the outer islands due to poor coverage. Starlink’s satellites, which are still in low orbit, will help them provide speedier internet with statewide coverage.

Health Minister Budi Gunadi Sadikin states that around 2,700 of the country’s more than 10,000 clinics lack internet connection.

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Kids News – VOR News Image

Elon Musk Launches Starlink Satellite Internet Service In Indonesia, World’s Largest Archipelago

“The internet can open up better access to health services as communication between regions is said to be easier, so that reporting from health service facilities can be done in real time or up to date,” he stated.

Musk will also attend the 10th World Water Forum, which aims to solve global water and sanitation issues, during his first in-person visit to Bali.

Musk spoke in 2022 at the B-20 business gathering, which preceded the Group of 20 leading economies’ summit in Bali. He attended the meeting via video link weeks after completing his much-scrutinized takeover of Twitter.

Musk’s visit comes just weeks after Apple CEO Tim Cook met with Widodo on April 17, stating that the business will “look at” manufacturing in Indonesia. Microsoft CEO Satya Nadella paid a visit on April 30 and announced plans to invest $1.7 billion in new cloud and artificial intelligence infrastructure in Indonesia over the next four years.

starlink

AP – VOR News Image

Elon Musk Launches Starlink Satellite Internet Service In Indonesia, World’s Largest Archipelago

Indonesia, under Widodo, has pushed the growth of the digital technology and information industries in order to accomplish the government’s Golden Indonesia 2045 vision. The Netherlands aspires to be one of the world’s top five economies, with a GDP of up to $9 trillion, exactly a century after gaining independence from Dutch invaders.

SOURCE – (AP)

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Canada Fisheries Officers Seize Elvers Worth $500K at Toronto Airport

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Canada Fisheries Officers Seize Elvers
The seized elvers are worth between $400,000 and $500,000: CTV News

Fisheries and Oceans Canada (DFO) officers and Canada Border Services Agency (CBSA) officers seized roughly 109 kg of unlawful elvers at Toronto Pearson International Airport. The elvers were scheduled to be transferred overseas.

The seized elvers are worth between $400,000 and $500,000.

An investigation into this matter for violations of the Fisheries Act is currently underway.

“The magnitude of this elver seizure is an important development,” said Diane Lebouthillier, Minister of Fisheries, Oceans, and the Canadian Coast Guard, in a statement. “It reflects not only the work of Fisheries and Oceans Canada, but also the collaborative efforts of many other government agencies and departments.

“Once again, our message is crystal clear: do not travel to Nova Scotia to illegally fish or export elvers this year, enforcement officers will be waiting for you.”

This seizure was the product of a coordinated operation combining officials from the DFO’s Conservation & Protection Directorate and the National Fisheries Intelligence Service, as well as the CBSA Commercial Operations District and intelligence teams.

The federal government banned the lucrative elver fishery on March 11 following violence and intimidation during last year’s fishing season in Nova Scotia and New Brunswick.

Elvers are often flown to Asia and grown to maturity before being sold for food, with mature eels utilized in unagi dishes at sushi restaurants.

The baby eels are valued approximately $5,000 per kilogram, more than lobsters, scallops, or salmon, making them the most valuable fish by weight in Canada.

The DFO announced in March that no elver fishing would take place this year due to safety and conservation concerns. So far, cops have made 149 arrests and seized around 207.7 kg of elvers.

According to federal data, 149 people have been arrested for elver-related crimes this year, with approximately 208 kilos recovered.

Elvers, the fascinating baby eels

Elvers, the fascinating baby eels

Elvers are tiny, transparent young eels that migrate from the ocean into freshwater rivers and streams. These little snake-like organisms make an astonishing journey, swimming thousands of miles to their destination. Elvers perform an important role in the life cycle of eels, eventually maturing into the adult eels we know.

Their migration is a spectacular natural spectacle. Elvers crawl in large groups upstream, overcoming barriers such as waterfalls and dams. Once in freshwater, they will mature for years before returning to the sea to breed and repeat the cycle. Elvers face numerous dangers, including habitat loss and over fishing, making conservation efforts critical for these extraordinary migratory.

 

 

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CNN Pay Tribute to Alice Stewart: A Very Special Woman Dead at 58

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Alice Stewart

Alice Stewart, a longtime political strategist and CNN political pundit who worked on multiple Republican presidential campaigns, has died. She was 58. CNN anchor Wolf Blitzer joins Jessica Dean to reflect on Stewart as a friend and coworker.

According to law enforcement officials, Stewart’s body was discovered outside in the Belle View community of northern Virginia early Saturday morning. There is no indication of foul play, and officers assume a medical emergency occurred.

“Alice was a very dear friend and colleague to all of us at CNN,” CNN’s CEO Mark Thompson wrote in an email to employees Saturday. “A political veteran and Emmy Award-winning journalist who brought an exceptional spark to CNN’s coverage, known throughout our bureaus not only for her political acumen, but also for her unfailing kindness. Our emotions are heavy as we lament such a great loss.”

Alice Stewart was born March 11, 1966, in Atlanta.

Stewart began her career as a local reporter and producer in Georgia before relocating to Little Rock, Arkansas, to become a news anchor, she told Harvard International Review. She went on to work as the communications director for then-Arkansas Gov. Mike Huckabee before taking on a similar role for his presidential campaign in 2008.

She previously worked as the communications director for former Minnesota Rep. Michele Bachmann’s 2012 Republican presidential campaign, as well as former Pennsylvania Sen. Rick Santorum, a former CNN analyst. Stewart most recently served as the communications director for Texas Sen. Ted Cruz’s 2016 GOP campaign.

“Alice was wonderful, talented, and a dear friend,” Cruz wrote in a post on X. “She lived every day to the fullest, and she will be deeply missed.”

CNN hired Stewart as a political pundit ahead of the 2016 election, and she appeared on “The Situation Room with Wolf Blitzer” as recently as Friday to provide insight on the day’s political headlines.

“We always invited her to come on my show because we knew we would be a little bit smarter at the end of that conversation,” Blitzer stated to Jessica Dean on “CNN Newsroom.” “She helped our viewers better appreciate what was going on and that’s why we will miss her so much.”

Alice Stewart: A Very Special Woman Dead at 58

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