The trial between Michael Jordan’s 23XI Racing and NASCAR is over, with Jordan and Co. coming out as the big winner.
Jeffrey Kessler, the attorney representing Jordan’s 23XI Racing and Front Row Motorsports in the teams’ antitrust lawsuit against NASCAR, told Judge Kenneth Bell that the parties had reached a settlement Thursday “in a way that will benefit the industry going forward.”
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That “way” is what the two sides are calling “evergreen charters” — which are essentially permanent team charters, the main sticking point between Jordan’s side and NASCAR.
“From the beginning, this lawsuit was about progress,” Jordan said in a statement after the settlement. “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.”
Per the terms of the settlement, the financial agreements between the teams and NASCAR will not be publicly disclosed.
What was the trial about?
The future of NASCAR, really.
In 2016, NASCAR implemented charter agreements, NASCAR’s version of franchising. The charter agreement were not in perpetuity, but they provided 36 teams guaranteed entry into every race of the season and a larger share of purse money than “open” (or non-charter) teams.
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The old charter agreement expired at the end of the 2024 season in concurrence with NASCAR’s previous media rights deal. In the fall of 2024, NASCAR presented teams with a new charter agreement that would run from 2025-2031. Given less than one day to agree to the new agreement — which NASCAR said was its final offer after months of contentious negotiations — most teams signed on. Two did not. 23XI, co-owned by Michael Jordan and driver Denny Hamlin, and Front Row Motorsports held out.
They, along with many other teams who signed the deal, wanted the charters to be permanent, but NASCAR and the France family, the sanctioning body’s longtime owners, didn’t acquiesce to that request.
NASCAR granted teams a larger portion of media rights money in the current charter agreement, however the sanctioning body and its tracks continue to receive the majority of revenue. Teams have said that costs have skyrocketed in recent years and especially since the implementation of NASCAR’s “NextGen” car in 2022. Teams are forced to use NASCAR-approved, single-source suppliers to build their cars instead of building many of their own parts in-house.
23XI and Front Row accused NASCAR of monopolistic and anticompetitive behavior as NASCAR gave teams just hours to sign its final charter offer in September of 2024. Because they didn’t sign the charter agreement, the two teams forfeited their charter status for the 2025 season. After a legal back-and-forth which saw them temporarily regain those charters, 23XI and Front Row raced as open teams for much of the 2025 season.
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The two sides spent the last few months wrangling for a settlement but were unable to come to an agreement. On Dec. 1, the two sides — 23XI/Front Row and NASCAR — went to court, an all-or-nothing proposition for Jordan who likely would have shut his team down had he lost.
The trial
Jordan said on the stand that he felt he needed to challenge NASCAR and that attorneys advised him that the charter agreement could be in violation of antitrust laws. The charter agreement included a non-disparagement clause that teams needed to agree to.
Over eight days, some of NASCAR’s biggest names — Jordan, Hamlin, team owner Richard Childress — along with executives — Jim France, NASCAR’s principal owner; commissioner Steve Phelps; and president Steve O’Donnell — took the stand in Charlotte, North Carolina, where both sides made their case. In simplistic terms, the Jordan side argued they’re losing money because NASCAR is keeping too much of it, NASCAR arguing the current agreement provides stability for a sport in an uncertain time.
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Maybe the most impactful testimony came from Heather Gibbs, daughter-in-law of longtime team owner and former NFL coach Joe Gibbs and co-owner of Joe Gibbs Racing. Heather Gibbs explained that while they did sign the new charter agreement, it came “like you have a gun to your head.”
“We said we have to sign this,” Gibbs testified, per Fox Sports. “We can’t lose this. We have too many employees. … I did not think it’s a fair deal for the teams.
“… If you don’t sign it … everything is gone.”
Before the trial reached its ninth day, the two sides came to an agreement.
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As part of the settlement, both 23XI and Front Row will receive their charters back.
“This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans, which has always benefited our highest priority since the sport was founded in 1948,” Jim France said. “We worked closely with race teams 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.”
23XI Racing is one of NASCAR’s newest Cup Series teams. The team, co-owned by Jordan, his longtime business manager Curtis Polk and current Cup Series driver Denny Hamlin, began in 2021 with Bubba Wallace and has since expanded to a three-car team.
Front Row Motorsports is also a three-car team and has fielded cars in the Cup Series since 2005.
The teams had expanded from two to three cars ahead of the 2025 season as each reached an agreement to purchase a charter from the now-defunct Stewart-Haas Racing. Because of the lawsuit, those deals had officially been on hold, though they’ll now be allowed to close.
“I’ve cared deeply about the sport of NASCAR my entire life,” Hamlin said. “Racing is all I’ve ever known, and this sport shaped who I am. That’s why we were willing to shoulder the challenges that came with taking this stand. We believed it was worth fighting for a stronger and more sustainable future for everyone in the industry. Teams, drivers and partners will now have the stability and opportunity they deserve. Our commitment to the fans and to the entire NASCAR community has never been stronger. I’m proud of what we accomplished, and now it is time to move forward together and build the stronger future this sport deserves.”
