By John Q. Hosedrinker 
Following an antitrust lawsuit filed by Michael Jordan and 23XI Racing against NASCAR, a settlement was reached after an eight-day trial, granting all teams permanent charters. The agreement, celebrated by Jordan and NASCAR chairman Jim France, will allow a focus on racing, ending months of disputes. The settlement also ensured revenue sharing changes and will return 23XI and Front Row their charters in 2026. The resolution came after testimony revealed internal communications that, in the judge’s opinion, was great for NASCAR and the future of the sport.
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NASCAR settles federal antitrust case filed by 2 of its teams, one owned by NBA great Michael Jordan, and it appears the sport is in for some significant changes. This situation began when NASCAR, in what’s described as a “take it or leave it” approach, presented teams with new charter agreements. These charters are essentially a golden ticket, guaranteeing a spot in every race and a cut of the revenue. The catch? These agreements had to be signed quickly, or the teams risked losing their charters, which were quite valuable, selling for around $20 million.
This led to a showdown. Two teams, 23XI Racing co-owned by Denny Hamlin and the legendary Michael Jordan, and Front Row Motorsports, decided they wouldn’t sign and instead filed a lawsuit, alleging NASCAR was acting as a monopolistic bully. They weren’t alone in their frustration, and this action brought a lot of issues to the surface, and ultimately forced NASCAR’s hand.
The core of the dispute revolved around the charter system. The fact that the France family, who own NASCAR, refused to give teams permanent charters, forcing them to renegotiate and re-up their agreements, was seen as outrageous by many. It’s like asking Ferrari or Penske to reapply for their spot in F1 or IndyCar every few years – unthinkable. The teams had invested heavily, and the constant threat of losing everything was a major point of contention. The idea of losing your charter overnight makes it really difficult for any of these owners to create a team, and the power dynamic of the situation favored NASCAR.
Adding fuel to the fire, the teams felt they were being strong-armed into these agreements. The implication was, if they didn’t sign, they’d be out of business. The lawsuit also highlighted some troubling financial arrangements. While NASCAR has a lucrative TV deal, the teams only receive a fraction of the revenue, with NASCAR and the tracks taking a much larger cut. The lawsuit also revealed that NASCAR owns 100% of the international revenue, which added to the perception of an uneven playing field.
Then, there were the behind-the-scenes issues. The legal teams unearthed communications from NASCAR executives disparaging team owners and sponsors. One particularly damaging incident involved the CEO of a major sponsor, Bass Pro Shops, calling for the removal of the NASCAR commissioner after discovering that a team owner was being belittled. This was the straw that broke the camel’s back, as sponsors began to look elsewhere. The news of disparaging comments made by NASCAR executives about team owners behind their backs seemed to turn the tide.
The problems even extended to the performance of the race cars themselves. The introduction of the “Next Gen” car, which was intended to cut costs, has done just the opposite, between the tariffs, the rule changes, and safety concerns. This, combined with the other issues, put immense pressure on NASCAR.
The settlement agreement will provide some relief for the teams, but not at the expense of its own shareholders, who are, in this case, the teams. The key outcome is that NASCAR teams will now receive permanent charters, offering much-needed stability. Additionally, it’s likely the teams will receive compensation for the revenue lost after their charters were revoked.
Ultimately, the pressure of a lawsuit, negative public perception and the loss of major sponsors pushed NASCAR to settle. The fact that Michael Jordan, who has a genuine love for the sport, was involved, and that his team had the resources to fight this in court, likely played a role in the outcome. It appears the France family was challenged. The days of unwavering control are over. This situation highlights a shift in power, and the future of NASCAR is now much more team-friendly.