NASCAR and two of its Cup Series teams — including Michael Jordan’s 23XI Racing — have officially ended a high-profile antitrust battle that’s gripped the sport for more than a year.
The surprise settlement was confirmed by ESPN on Thursday, December 11, on the ninth day of trial, halting proceedings just as both sides prepared for another round of arguments.
While terms weren’t publicly disclosed, both NASCAR and the plaintiffs confirmed the core outcome: team charters will become permanent beginning in 2026, resolving the central issue that prompted the case to be brought into federal court.
The agreement closes a tense chapter in NASCAR history. The lawsuit was filed by 23XI Racing and Front Row Motorsports after the teams refused to sign a 112-page charter extension in September 2024 — a document they received with only hours to review.
The charter system, implemented in 2016, guarantees spots and revenue for 36 teams. But unlike other pro sports franchises, NASCAR’s charters could be revoked, and teams had been pushing for long-term security.
Several organizations testified during the trial that they signed the extension “with a gun to our head,” fearing their operations would collapse without guaranteed entry into races.
He told jurors that teams had been “brow-beaten for so many years” and that the charter proposal presented to them wasn’t economically viable. He also objected to a clause barring teams from suing NASCAR, saying it raised antitrust concerns.
Front Row Motorsports echoed those frustrations, arguing that the threatened loss of charters jeopardized their entire business.
When the settlement was announced, Jordan and NASCAR chairman Jim France walked out of the courthouse together, signaling a shift after months of public friction.
“The only way this sport is going to grow is we have to find some synergy between the two entities,” Jordan said, noting that reaching this point took 16 months of negotiations and an eight-day trial.
France agreed, adding that the resolution allows NASCAR to get “back to focusing on what we really love, and that’s racing.”
U.S. District Judge Kenneth Bell praised the agreement, telling jurors that sometimes a trial must unfold before the parties recognize the value of compromise.
Teams are now waiting for NASCAR’s updated revenue-sharing plan, which will be outlined separately.