Home / NASCAR / NASCAR Agrees To Settlement With 23XI Racing, Ending Blockbuster Trial

NASCAR Agrees To Settlement With 23XI Racing, Ending Blockbuster Trial

Jared Turner Written by Sports EditorJared Turner
Updated –
We may use AI tools to support content creation and editing. While we aim for accuracy via strict editorial standards, readers should independently verify important information. Ads on our site are served by Google AdSense and are not controlled or influenced by our editorial team.
Michael Jordan

NASCAR has agreed to a settlement with plaintiffs 23XI Racing and Front Row Motorsports, abruptly ending the blockbuster antitrust trial that has rocked the NASCAR world and threatened to do permanent damage to the sport.

The shocking news came down on Thursday morning just as Day 9 of court proceedings were getting underway in U.S. District Court in Charlotte, North Carolina. The NASCAR antitrust trial involving two Cup Series teams — one of them co-owned by NBA legend Michael Jordan — had been expected to continue into next week.

The parties did not disclose the financial terms of the settlement. But a joint statement from NASCAR and the two teams said that all Cup teams will now have evergreen (permanent) charters rather than temporary ones, which had been a major point of contention in a lawsuit that 23XI Racing and Front Row Motorsports filed against NASCAR in October 2024.

“This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans, which has always been our highest priority since the sport was founded in 1948,” NASCAR chairman and CEO Jim France said in the joint statement. “We worked closely with race teams and tracks to create the NASCAR charter system in 2016, and it has proven invaluable to their operations and to the quality of racing across the Cup Series.

“Today’s agreement reaffirms our commitment to preserving and enhancing that value, ensuring our fans continue to enjoy the very best of stock car racing for generations to come.”

NASCAR issues charters, which can cost teams up to $40 million. A charter guarantees a team entry into the field for every NASCAR Cup Series race. So, having a charter also ensures a team a portion of the purse money for each event.

Why Did NASCAR, Teams Agree To Settle Out Of Court?

Perhaps not coincidentally, the settlement came a day after Johnny Morris — the Bass Pro Shops CEO whose company has long been a major NASCAR sponsor — expressed his belief that NASCAR could no longer govern the sport in a fair and impartial manner.

Morris, a close friend of NASCAR Hall of Fame team owner Richard Childress, expressed disdain for how NASCAR commissioner Steve Phelps disparaged Childress in recently uncovered text messages from 2023.

The timing of Morris’ NASCAR rebuke notwithstanding, it’s impossible to say exactly why NASCAR was finally able to settle with 23XI Racing and Front Row Motorsports. In the lawsuit filed against NASCAR in October 2024, the two teams’ respective owners, Michael Jordan and Denny Hamlin (23XI), and Bob Jenkins (Front Row), had been seeking hundreds of millions of dollars in damages.

The trial, which began on December 1, had been an ugly one. But the plaintiffs seemed to be in a good position thanks in large part to strong arguments from high-profile antitrust/sports law attorney Jeffrey Kessler, who tried to paint NASCAR, led by the France family, as an organization that deliberately took advantage of its teams.

Central to the case was the claim by 23XI Racing and Front Row Motorsports that NASCAR has violated antitrust laws and engaged in monopolistic practices designed to protect the sport from any motorsports leagues it might deem as competition.

The teams also alleged they had suffered major financial losses under the old 2016 charter agreement and the 2025 charter agreement, which they refused to sign in September 2024. The Cup Series’ other 13 teams signed the new charter, albeit reluctantly in several instances.

With the settlement, however, NASCAR will again grant charters — permanent ones — to 23XI and Front Row after the teams raced without them in 2025.

Michael Jordan Made It Clear What 23XI Racing Wanted From NASCAR

Michael Jordan, Denny Hamlin, Bob Jenkins, Richard Childress, Joe Gibbs Racing co-owner Heather Gibbs and others had all testified in court over the past week-and-a-half about how their teams had struggled to be profitable under the controversial charter system, which is akin to franchising in other sports.

NASCAR, however, had stood its ground in court, with the sport’s top executives defending the charter system, denying allegations of questionable business practices, and claiming that teams are receiving a fair share of the money the sanctioning body collects under NASCAR’s highly lucrative media rights deal (the plaintiffs disagreed).

During his roughly one-hour testimony last week, Jordan outlined four general concessions that his team wanted from NASCAR. They were a larger share of NASCAR revenues, governance with regard to voting power over specific cost increases, permanent charters, and a one-third share of any new business NASCAR acquires.

Since Jordan launched 23XI Racing in 2021 with three-time Daytona 500 winner Hamlin as co-owner, the organization has enjoyed measurable success on the racetrack with drivers Bubba Wallace and Tyler Reddick.

Prior to the settlement, however, the future of 23XI and its drivers had been in question. But now, they race on.

“From the beginning, this lawsuit was about progress,” Jordan, a lifelong NASCAR fan who is widely considered the greatest basketball player ever, said in the joint statement with NASCAR. “It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans.

“With a foundation to build equity and invest in the future and a stronger voice in the decisions ahead, we now have the chance to grow together and make the sport even better for generations to come. I’m excited to watch our teams get back on the track and compete hard in 2026.”

Jared Turner Written by Sports EditorJared Turner
Jared Turner is a motorsports writer who has covered NASCAR for 20 years. He has interviewed over 20 NASCAR Hall of Famers and around 100 drivers, crew chiefs, and team owners, both past and present. He has also covered the sport for FOX Sports (where he was a two-time recipient of the FOX “X” Award for “Xtraordinary” job performance), NASCAR.com, Sporting News, NASCAR Pole Position Magazine, the SPEED network, and plenty of other online and print-only publications throughout his career. Notably, Jared has penned dozens of articles for NASCAR souvenir programs, including several featured prominently in Daytona 500 keepsakes. A Virginia Press Association award winner and former member of the National Motorsports Press Association (NMPA), Jared has racked up accolades both for his writing and his academic work. He studied both Communication and Psychology at Virginia Tech, where he was permanently enshrined in Phi Beta Kappa — the nation’s oldest and most prestigious academic honor society. Jared excels at feature writing and opinion writing, much of which stems from his dedication to all levels of racing.
All posts by Jared Turner
Other News