NASCAR Settles Lawsuit, Charters Are Now Permanent

NASCAR has settled a lawsuit with two race teams, 23XI Racing and Front Row Motorsports. This agreement means that the team charters will be permanent. This is good news for the future of NASCAR and the teams.
By Newsroom | NASCAR, Legal |

NASCAR has reached a settlement in a federal antitrust lawsuit brought by two prominent race teams, 23XI Racing and Front Row Motorsports. The agreement, announced on December 11, 2025, concluded a trial that had been ongoing for nine days. While the specific terms of the settlement remain confidential, the resolution ensures the permanence of NASCAR charters for all teams and signals a significant shift in the sport's governance.

The antitrust case, filed by 23XI Racing (co-owned by NBA legend Michael Jordan) and Front Row Motorsports, challenged NASCAR's business practices. The teams argued that certain NASCAR policies put them at risk of financial ruin, and that a loss in the case could have forced them out of business. The trial took place before U.S. District Judge Kenneth Bell in Charlotte.

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Key points from the settlement include:

  • The dispute between NASCAR and the two teams has been officially resolved.

  • The lawsuit was dismissed "with prejudice," meaning it cannot be brought again.

  • 23XI Racing and Front Row Motorsports have signed new charter agreements with NASCAR.

The Role of Charters

A central element of the settlement involves NASCAR's charter system. Charters guarantee a race team automatic entry into every NASCAR Cup Series points race and a share of the sport's revenue. The agreement solidifies these charters as permanent fixtures for all 36 charter teams. This move is seen as beneficial for the long-term value and stability of NASCAR and its teams.

"With this change, we can finally build long-term value and have a real voice in Nascar’s future." – Michael Jordan (Statement following settlement)

Impact and Reactions

The settlement is being described by stakeholders as positive for the future of NASCAR and for the entity of the sport itself. Denny Hamlin, a partner in 23XI Racing, expressed optimism about the resolution. While the specifics of the financial settlement are not public, the consensus is that this agreement will help shape the future direction of NASCAR.

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"Great for the future of NASCAR. Great for the entity of NASCAR. Great for the teams and ultimately great for the fans." – (Attributed statements from parties involved)

The resolution of this legal challenge, which had been ongoing for about a year, allows NASCAR to focus on its upcoming 78th season with a potentially altered financial and governance landscape.

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Frequently Asked Questions

Q: What was the lawsuit about?
Two race teams sued NASCAR because they felt some rules put them in financial danger. They wanted to make sure they could keep racing.
Q: What is a NASCAR charter?
A charter is like a guarantee for a race team. It means they are always allowed to race in NASCAR Cup Series races and get a share of the money.
Q: What does the settlement mean?
The lawsuit is over, and the charters are now permanent. This means teams have more security and can plan for the future.
Q: Who was involved in the lawsuit?
The lawsuit was filed by 23XI Racing and Front Row Motorsports against NASCAR. Michael Jordan co-owns 23XI Racing.