December 22, 2025
Charlotte, N.C. — NASCAR and two of its race teams, including one co-owned by retired NBA star Michael Jordan, have reached a settlement Thursday Dec. 11, in the high-stakes federal antitrust lawsuit that had threatened to reshape the entity of stock-car racing.
The lawsuit, filed in 2024 by 23XI Racing and Front Row Motorsports, accused NASCAR of monopolistic practices by imposing unfavorable charter terms that teams said limited long-term financial security and competitive opportunities. At the center of the dispute was NASCAR's charter system, which functions similarly to a franchise agreement by guaranteeing entry into every Cup Series race and a share of the sport's revenue.
The agreement was announced in U.S. District Court comes on the ninth day of a trial that exposed deep tensions between the sanctioning body and teams over the sport's charter system, which essentially functions as a franchise agreement guaranteeing access to each race and a share of the sports revenue.
Under the terms of the settlement, all NASCAR Cup Series teams will receive permanent, evergreen charters— a major change from the longstanding model in which charters were renewable at the sanctioning body's discretion. NASCAR said the move brings long-term stability and clarity for teams, drivers, and sponsors. Financial terms of the deal were not disclosed.
"We believe this is great for the future of NASCAR," U.S. District Judge Kenneth Bell said in court, urging that the settlement will strengthen the sport's foundation and broaden its appeal to fans and investors alike.
Jordan, who co-owns 23XI Racing with business partner Curtis Polk and driver Denny Hamlin, and Front Row Motorsports owner Bob Jenkins stood alongside NASCAR Chairperson Jim France as they announce the settlement outside the courthouse. Jordan called the day "a good day" for the sport, emphasizing cooperation over conflict.
The lawsuit argued that NASCAR’s revenue structure that unfairly limited their financial returns and competitive opportunities. The team's attorneys argued that a lack of permanent charters undermined long-term planning and hurt investment into the sport.
23XI and Front Row were the only organizations to refuse NASCAR's 2024 charter renewals, leading them to compete as "open" entries for much of the 2025 season. Financial experts for the plaintiffs estimated damages in the hundreds of millions of dollars.
NASCAR, privately held by the France family since its founding in 1948, had defended its system as a standard business practice designed to maintain flexibility and competitive balance. The case drew scrutiny over internal communications and pointed to widening disagreements between the teams and the sport's leadership.
The settlement removes a cloud of uncertainty as NASCAR heads toward its most visible events of the season. With the Daytona 500 set for February, the resolution provides stability not only for teams and sponsors but also for the Daytona Beach region, where motorsports events generate tens of millions of dollars in local economic impact.
By resolving the dispute ahead of the sport's flagship races, NASCAR enters the new season with a restructured charter system and renewed focus on competition as engines prepare to roar again at Daytona International Speedway.
