NASCAR has quietly defused one of the biggest off track stories in recent stock car history, reaching a settlement with 23XI Racing and Front Row Motorsports that ends a high profile federal antitrust trial. The case, led in part by 23XI co owner Michael Jordan along with partners Denny Hamlin and Curtis Polk, challenged the league’s control over its charter system and wider business model. After more than a year of legal wrangling and over eight days in court, both sides stepped away from the brink and agreed to a deal that amends the current charter agreement rather than letting a jury decide the future of the sport’s financial structure.

At the center of the fight was the charter system, which functions as a franchise style guarantee for a team’s place on the NASCAR Cup grid and its share of revenue. 23XI and Front Row refused to sign NASCAR’s latest extension in 2024, arguing that temporary, revocable charters and the existing revenue split made it nearly impossible to build long term equity or attract major investors. When negotiations stalled, the teams filed suit, accusing NASCAR of monopolistic practices and pushing for permanent, or “evergreen,” charters. The settlement keeps the framework in NASCAR’s hands but includes language that allows for evergreen charters subject to mutual agreement, a key concession that effectively gives teams the stability they were chasing.

Another major outcome is that 23XI Racing and Front Row Motorsports regain full control of their three charters each, putting them back on equal footing with the rest of the 36 chartered entries in the Cup field. During the legal battle, those charters had become bargaining chips and pressure points, with injunctions, appeals and the real threat that both organizations could be forced to operate as non charter “open” teams. By restoring their charters and clearing the legal cloud, the settlement lets both operations refocus on performance rather than courtroom drama, while also setting a precedent that benefits every team that relies on charter value to justify massive spending on cars, personnel and facilities.

Just as important, NASCAR avoids the risk of an unfavorable verdict that could have reshaped how it owns tracks, negotiates TV deals and shares revenue with the garage. Testimony during the trial had already peeled back the curtain on internal tensions, including talk of a potential breakaway series and complaints about the sport’s economic model. Instead of letting that story drag on for months, the series and its teams now get to present a unified front heading into the new season. When the Cup cars fire up again in February, it will be the first time since early 2024 that the paddock is not living under the shadow of an unresolved charter fight, and that alone should be good news for fans who would rather talk about who is fast on Sunday than who is winning in court.

Sources: ESPN, APNews, 23XI Racing