NASCAR, teams reach settlement in antitrust trial

CHARLOTTE, N.C. (CN) — NASCAR, Front Row Motorsports and 23XI Racing reached a settlement agreement Thursday, toward the end of a two-week trial in which the teams accused the sports racing company of violating antitrust law.

“Level heads have got us to where we can actually work together and grow the sport,” Michael Jordan, co-owner of 23XI Racing, told reporters after leaving court.

“We believe it’s a settlement that’s going to grow this sport, that’s going to be great for teams, and for NASCAR, and most importantly, for the fans,” plaintiff attorney Jeffrey Kessler said.

As part of the settlement, the teams had their charters returned for the 2026 season. NASCAR Cup Series teams will also have “evergreen,” or permanent charters — similar to franchise status — the parties said. The 13 other teams not involved in the lawsuit will be given an amendment to their contracts.

The parties jointly said that the financial terms of the settlement will not be made public.

“One of the key issues here for NASCAR has always been the preservation of the charter system. And we are thrilled that through this system we get to preserve the charter system for the teams and stakeholders while at the same time providing NASCAR with the flexibility to run the sport in the best interest of all of the shareholders.” Lawrence Buterman, attorney for NASCAR and CEO Jim France, added.

Spirits were high after the settlement was announced, with attorneys hugging in the courtroom. “People are happy to have resolved this,” Chris Yates, counsel for NASCAR, told Courthouse News, as staff and attorneys crowded the floor.

“I feel like everything within this settlement is going to grow this sport and it’s going to be better for everyone, there’s no doubt about it,” said Denny Hamlin, race car driver and minority owner of 23XI Racing.

The agreement was reached two hours after court convened Thursday morning. Attorneys for both parties and the corporate representatives for 23XI, Front Row and NASCAR — Michael Jordan, Curtis Polk, Lesa France Kennedy and Jim France — spoke with U.S District Judge Kenneth Bell in his chambers before the jury entered, then returned asking for additional time.

The trial, which was initially scheduled to end Friday, looked like it would run long after the plaintiffs spent more than a week presenting their case. NASCAR began its arguments Wednesday, and closing arguments were expected to be the following week. The agreement came on the ninth day of trial.

Front Row Motorsports and 23XI Racing had argued that NASCAR’s 2025 racing charters are anticompetitive, claiming teams could secure far more profitable deals if the sport weren’t insulated from competition. NASCAR blocks potential rivals by locking racetracks into exclusivity agreements, they claimed, barring teams from racing elsewhere and restricting the use of Next Gen cars in any competing series.

NASCAR’s charter system — its version of a franchise — allows teams to race under multiyear contracts with guaranteed terms or else qualify for each Cup Series race. Friction over those terms led the plaintiffs to refuse the 2025 agreements, prompting the lawsuit. The remaining 13 teams signed the agreement.

NASCAR representatives had contended the group did not want permanent charters, as the sport requires flexibility around scheduling races and the teams’ cut of broadcasting profits would vary depending on the contract they reached with TV companies. Several team owners had testified about the economics of surviving as a competitive team, with Front Row Motorsports owner Bob Jenkins saying he has never made a profit in over 20 years of racing.

During the course of the trial, Jordan testified he wanted the racing teams’ relationship with NASCAR to be more of a partnership, similar to the franchise relationship that exists in the NBA. Teams and racers assume all the risks in racing, he said, both financial and otherwise.

“I’m not discrediting what NASCAR has done to improve the sport,” Jordan said Friday. But, “I never saw Jim France drive a car. I never saw Jim France risk his life.”

Before the trial began, U.S. District Judge Kenneth Bell, a Donald Trump appointee, issued a judgment affirming NASCAR has a 100% market share in premier stock car racing. NASCAR has and exercises monopsony power over the racing market, Bell said.

The jury had been tasked with determining if NASCAR maintained its monopsony — when there is only one buyer of services — over the premium stock car racing market by using anticompetitive conduct, and if so, if the teams were injured by that behavior.

There was excitement Thursday when Bell told them that they were released from their service.

“We don’t get to stay through tomorrow?” One juror asked sarcastically. A male juror in a blue-and-white checkered shirt did dance as the nine-person jury left.

“It was the right thing to do,” Bell said, adding, “I think this is going to be great for NASCAR … and ultimately great for the fans.”

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