NASCAR, 23XI and Front Row Settle Antitrust Dispute in Confidential Agreement

The two teams sued NASCAR in 2024, alleging that the organization used monopolistic and anti-competitive tactics to pressure teams into accepting unfavorable charter terms. The charter system, central to how teams access races and earn revenue, became the flashpoint of the dispute. Per a statement, the most recent charter agreement was presented with a strict deadline at the start of the 2024 playoffs, leaving teams feeling they had no viable option but to comply.

After roughly 90 minutes of deliberation Thursday morning, plaintiffs’ attorney Jeffrey Kessler returned to announce the settlement. “I’m pleased to say that the parties have positively settled this matter in a way that will benefit the industry going forward,” Kessler said. Judge Bell thanked jurors and remarked that sometimes the evidence presented in a trial helps parties recognize the value of resolving a case. “I believe this is great for NASCAR. Great for the future of NASCAR. Great for the entity of NASCAR. Great for the teams and ultimately great for the fans,” he said in court.

NASCAR CEO and chairman Jim France said the settlement “gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans,” emphasizing that the organization’s commitment dates back to the sport’s founding in 1948. He pointed to the charter system created in 2016 as “invaluable” for operations across the Cup Series and said the updated terms reaffirm NASCAR’s priority to preserve and strengthen the sport’s value heading into its 78th season.

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Related: Judge Pushes for Faster Pace in NASCAR Antitrust Trial

According to the statement released Thursday, a condition of the agreement requires NASCAR to issue an amendment to existing charter holders outlining updated terms, including “evergreen” charters that would remain in effect subject to mutual agreement. Financial specifics of the settlement remain confidential per the statement.

23XI Racing co-owner and NASCAR Cup Series driver Denny Hamlin said it had been “worth fighting for a stronger and more sustainable future for everyone in the industry.” In a statement, he added: “Teams, drivers and partners will now have the stability and opportunity they deserve.”

Front Row Motorsports owner Bob Jenkins said he was “excited for the road ahead,” noting that after two decades in NASCAR he now has “real confidence in where we’re headed.” Jenkins said in a statement that a system ensuring fair treatment of teams, drivers, and sponsors was essential to maintaining strong competition and building long-term value.

Michael Jordan, co-owner of 23XI Racing, also underscored the broader implications of the agreement. “From the beginning, this lawsuit was about progress,” he said. “It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans.”

The settlement was reached one day after the plaintiffs rested their case following eight days of testimony. A joint statement from NASCAR, Front Row Motorsports, and 23XI Racing said the resolution “delivers long-term stability and creates the conditions for meaningful growth for all teams in a more competitive environment,” according to the statement.

Source: The Guardian