NASCAR confirmed Wednesday that in a move they say is done for legal prudence and not as a sign of animosity, it has directed that all communication between NASCAR and the RTA be done through lawyers.
After the Sporting News published a column on the RTA Tuesday saying the development is a sign of an increased lack of trust between NASCAR and the teams and vice versa, Kauffman tweeted that ISC also has issued a lawyer-only edict.
NASCAR, which sanctions races and runs the series, is a private company owned by the France family, which also controls the majority of the publicly-traded stock of track-operating company ISC. They are no strangers to antitrust issues, having settled one antitrust lawsuit and won another in the last 10 years.
NASCAR uses the legal firm of Boies, Schiller & Flexner — well-known attorney David Boies (whose notable cases include representing Al Gore in his 2000 election challenge, the NFL in its lockout and the NBA Players Association when it was locked out) has represented NASCAR in its two major antitrust lawsuits as well as against NASCAR driver Jeremy Mayfield.
The RTA has hired the legal firm of Jones Day, which provides representation on financial issues to almost half of the Fortune 500 companies, such as its representing Reynolds American (R.J. Reynolds) in its acquisition of Lorillard announced Tuesday.
“We’re very careful with how we do things,” Kauffman said.
And they apparently need to be. Gary Roberts, a noted sports law expert and current professor at Indiana University, said last week that the organization could open itself up to a lawsuit depending on how it operates.
There is nothing wrong with the teams working together for better purchasing power as long as the people they purchase from are not dependent solely on NASCAR teams for their business.
The danger comes if the RTA represents the teams in any sort of negotiations with NASCAR and tries to use its collective leverage to force NASCAR’s hand.
More on this here.