NASCAR Antitrust Lawsuit Settled as Michael Jordan Secures Permanent Team Charters

NASCAR has settled a major antitrust lawsuit. The settlement came on December 11, 2025, in a Charlotte federal court. The lawsuit was filed by race teams co-owned by NBA legend Michael Jordan.

The racing series reached an agreement with 23XI Racing and Front Row Motorsports. According to the AP, the deal makes the critical team charter system permanent. This ends a high-stakes legal battle that threatened the sport’s business model.

Details of the Landmark Settlement Agreement

The specific financial terms were not made public. An economist had earlier testified the two teams were owed over $300 million. The settlement avoids a potentially damaging jury verdict.

NASCAR Chairman Jim France met with the team owners outside the courthouse. The owners confirmed the charter system would become permanent for all Cup Series teams. This guarantees teams a share of series revenue and a spot in races.

Both 23XI and Front Row will get their charters reinstated. They raced without them for most of the past season. Michael Jordan told reporters the resolution was a “good day” for the sport.

Avoiding a Risky Trial and Ensuring NASCAR’s Future

The settlement came on the ninth day of the trial before Judge Kenneth Bell. The teams had refused to sign a new charter agreement offered in 2024. Thirteen other organizations had reluctantly agreed to those terms.

Jordan and Front Row co-owner Bob Jenkins chose to sue instead. They argued the previous system was monopolistic. Both teams stated a loss at trial could have ended their businesses.

Judge Bell acknowledged the wisdom of settling mid-trial. He said the outcome was great for NASCAR, its teams, and its fans. The agreement provides long-term stability for team investments.

This settlement fundamentally reshapes NASCAR’s relationship with its teams. The permanent charter system marks a decisive victory for team owners like Michael Jordan. The NASCAR antitrust lawsuit settlement ensures a more predictable future for the sport’s top level.

Info at your fingertips

What was the NASCAR lawsuit about?

The lawsuit accused NASCAR of anti-competitive behavior. Teams 23XI Racing and Front Row Motorsports argued the charter system was unfair. They claimed it gave NASCAR too much control over team revenue and value.

Who owns 23XI Racing?

23XI Racing is co-owned by basketball Hall of Famer Michael Jordan and driver Denny Hamlin. Jordan was a prominent figure throughout the legal proceedings. He testified about his decision to challenge NASCAR’s model.

What is a NASCAR charter?

A charter is a contractual agreement between NASCAR and a team. It guarantees entry into every Cup Series race. It also provides a team with a fixed share of the sport’s prize money and revenue.

How does this settlement affect NASCAR?

It makes the charter system a permanent fixture. This gives team owners more security and enhances the value of their franchises. It likely prevents similar legal challenges in the near future.

Why did the teams settle during the trial?

Both sides saw the risks of a jury verdict. A loss could have been catastrophic for the teams or the sanctioning body. The settlement provides a certain outcome for all parties involved.