A high-stakes legal fight over the future direction of NASCAR has been abruptly resolved.
Nine days into a jury trial regarding antitrust claims against NASCAR, the motorsports organization reached a settlement agreement with the Michael Jordan–led 23XI Racing and Front Row Motorsports, the groups that had brought the claims.
Full settlement terms, including financial components, have not been announced, but the deal brings peace to a situation that had upended the sport since October 2024. 23XI and Front Row refused to sign a charter agreement NASCAR presented to them last year, with those pacts guaranteeing entry into every race and a larger share of purse money.
A core part of the settlement agreement, however, is the establishment of “evergreen” charters—something that 23XI and Front Row actively sought—instead of renewable ones. Historically, the 36 NASCAR charters have been similar to team franchises in stick-and-ball sports. The value of those charters has also grown, with a sale for one reaching $45 million earlier this year.
The conditions of those charters, however, has been at the core of the legal dispute, with 23XI and Front Row that the terms have been far too restrictive and anticompetitive. The stakes in the dispute were particularly high as both 23XI and Front Row said that a loss in the case would have put them out of business.
“This agreement allows all parties to move forward with a unified focus on advancing stock car racing and deliver exceptional competitions for fans,” 23XI, Front Row, and NASCAR said in a joint statement.
Extended Dispute
During the duration of the legal case, 23XI and Front Row instead have raced as unchartered “open” teams. They alleged that NASCAR, as well as the France family who owns and operates it, were “monopolistic bullies” that curbed competition by binding teams to its series, racetracks, and suppliers.
The agreement arrived after an extended delay during the ninth day of court proceedings. Jordan had been among those who had testified, and earlier this week, he said, “Someone had to step forward and challenge the entity. I wasn’t afraid. I felt I could challenge NASCAR as a whole. … The sport needed to be looked at from a different view.”
Following the settlement, Jordan’s tone changed materially.
“Unfortunately it took 16 months to get here, but I think level heads have gotten us to this point where we can actually work together and grow this sport,” he said. “I am very proud about that.”
Earlier this week, an economist testified that NASCAR owed 23XI and Front Row nearly $365 million in combined damages. The six combined charters for the two teams have been returned for the 2026 season.
“I wish we could’ve done this a few months ago,” said U.S. District Court judge Kenneth Bell. “I believe this is great for NASCAR, great for the future of NASCAR, great for the entity of NASCAR, great for the team, and ultimately, great for the fans.
“Sometimes the parties just have to see how the evidence unfolds to come to the wisdom of a settlement,” Bell said.
