NASCAR Reaches Settlement with Teams in Antitrust Lawsuit
In a surprise move, NASCAR has settled an antitrust lawsuit with two race teams, including one co-owned by basketball legend Michael Jordan. The settlement was announced on December 11, 2025, after a delay on the ninth day of the trial. Jordan and NASCAR chairman Jim France stood side-by-side on the steps of a federal courthouse, flanked by several team owners and lawyers, to celebrate the end of the eight-day trial.
The lawsuit, which was led by Jordan’s 23XI Racing and Front Row Motorsports, accused NASCAR of being a monopolistic bully. The teams had been seeking permanent charters, which guarantee a spot in every top-level Cup Series race and a fixed portion of the revenue stream. NASCAR had previously refused to make the charters permanent, but has now agreed to do so as part of the settlement.
Background of the Lawsuit
The charter system was implemented in 2016, and teams have argued for over two years that the charters needed to be made permanent. NASCAR had presented a “take-it-or-leave-it” final offer in September 2024, which gave teams until the end of the day to sign the 112-page document. 23XI and Front Row refused to sign, and instead filed a lawsuit against NASCAR.
During the trial, Jordan testified that as a new team owner in NASCAR, he felt he had the strength to challenge the organization. The trial revealed that many teams had signed the charter agreement under duress, with some testifying that they had done so “with a gun to our head” because the threat of losing the charters would have put them out of business.
Terms of the Settlement
While the terms of the settlement were not released, both Jordan and France confirmed that charters will now be permanent for all teams. 23XI and Front Row will receive their combined six charters back for 2026. An economist had previously testified that NASCAR owed 23XI and Front Row $364.7 million in damages, and that NASCAR had shorted 36 chartered teams $1.06 billion from 2021-2024.
The settlement came after two days of France’s testimony and the public release of a letter from Bass Pro Shops founder Johnny Morris, calling for NASCAR commissioner Steve Phelps to be removed. The discovery process had revealed internal NASCAR communications in which Phelps used derogatory language to describe Hall of Fame team owner Richard Childress.
Reaction from the NASCAR Community
Team owners and drivers have welcomed the settlement, with many expressing relief that the dispute has been resolved. Hall of Fame team owner Rick Hendrick expressed gratitude that a settlement had been reached, stating that “millions of loyal NASCAR fans and thousands of hardworking people rely on our industry, and today’s resolution allows all of us to focus on what truly matters – the future of our sport.”
U.S. District Judge Kenneth Bell, who presided over the trial, also welcomed the settlement, stating that it was “great for NASCAR, great for the future of NASCAR, great for the entity of NASCAR, great for the teams and ultimately great for the fans.”
The settlement marks a significant turning point for NASCAR, and is expected to have a positive impact on the sport as a whole. With the charter system now permanent, teams can focus on competing on the track, rather than worrying about their financial stability. As Jordan stated, “today’s a good day” for NASCAR, and the future of the sport looks bright.
