NASCAR Lawsuit Settlement, Michael Jordan’s 23XI Racing Reaches Agreement After 9-Day Trial
BREAKING: December 11, 2025 – NASCAR and the two race teams suing it reached a settlement agreement this morning, ending the explosive antitrust case that threatened to reshape stock car racing. Attorney Jeffrey Kessler announced in federal court that 23XI Racing (co-owned by Michael Jordan) and Front Row Motorsports settled with NASCAR and CEO Jim France after nine days of testimony exposed internal text messages, financial records, and bitter disputes over charter agreements.
The settlement came after a 90-minute recess on Day 9 of the trial. Kessler stated the parties “positively settled this matter in a way that will benefit the industry going forward.” Specific settlement terms have not been disclosed.
What Was This Lawsuit About?
23XI Racing and Front Row Motorsports filed the antitrust lawsuit on October 2, 2024, in federal court in Charlotte. The core allegations:
Charter System Monopoly Claims
- NASCAR allegedly forced teams into “take-it-or-leave-it” charter agreements
- Teams claimed they signed with “a gun to our head” on September 6, 2024
- The 112-page charter agreement had a same-day deadline during the 2024 playoffs
- Only 13 of 15 teams signed; 23XI and Front Row refused
Specific Antitrust Violations Alleged
- NASCAR controls the market for premier stock car racing
- Teams have no alternative series to sell their services
- NASCAR owns most tracks on the Cup Series schedule
- Exclusivity agreements prevent tracks from hosting rival racing series
- Charter agreements restrict teams from competing in other series without NASCAR approval
- Single-source supplier requirements for the Next Gen race car limit competition
Financial Harm Claims An economist testified that NASCAR owes 23XI $215.8 million and Front Row $148.9 million in damages based on allegations that NASCAR’s revenue-sharing model shortchanged teams compared to Formula 1’s 45% revenue share. NASCAR disputed these calculations.
Why Did 23XI and Front Row Sue?
The teams refused to sign NASCAR’s 2025-2031 charter agreement because:
- No Permanent Charters: NASCAR refused to make charters permanent despite teams requesting guaranteed franchise value
- Low Revenue Share: Teams argued NASCAR’s revenue split was far below industry standards
- Forced Signing Deadline: The September 6, 2024 deadline left teams feeling coerced
- Business Survival: Without charters, teams face significantly reduced prize money and no guaranteed entry into races
Michael Jordan testified during the trial, comparing NASCAR team ownership unfavorably to his experience as an NBA team owner. Denny Hamlin called signing the charter deal “a death certificate” for teams.
Current Settlement Status
Settlement Reached: December 11, 2025
Judge Kenneth Bell dismissed the jury after morning proceedings began when attorneys requested time for settlement discussions. After 90 minutes, Kessler announced the agreement.
What Happens Now:
- Trial proceedings have ended
- Settlement terms remain confidential pending formal announcement
- Both teams can now focus on the 2026 season with resolved charter status
- The agreement concludes over a year of contentious litigation
Key Court Rulings Before Settlement
November 5, 2025: Judge Bell ruled in favor of 23XI and Front Row on a critical market definition question, finding that NASCAR controls the market and NASCAR’s argument that teams can race in other series is moot.
October 28, 2025: Bell dismissed NASCAR’s counterclaim that accused the teams of illegal collusion to coerce better charter terms.
June 5, 2025: The U.S. Court of Appeals for the 4th Circuit overturned a preliminary injunction that would have let both teams race as chartered entries during 2025.
Result: 23XI and Front Row competed as “open” teams since July 2025, receiving significantly less prize money and no guaranteed race entry.
What the Trial Revealed
Over eight days of testimony before settlement, witnesses exposed:
NASCAR’s Financial Position
- NASCAR reported over $537 million in net income in 2023
- The France family received $400 million in distributions from 2021-2024
- 75% of these distributions went to pay taxes on S-Corporation income
- NASCAR spent $14 million developing the Next Gen car
Internal Conflicts
- Text messages showed NASCAR Commissioner Steve Phelps calling team owner Richard Childress a “stupid redneck” and “idiot”
- NASCAR executives privately expressed frustration with Jim France’s charter stance
- Teams described charter negotiations as an “ultimatum”
Jim France’s Testimony France, who rarely speaks publicly, testified on December 10. He refused to commit to permanent charters because he wanted flexibility, saying “I don’t have a sightline to the future. I don’t want to make a promise forever that I don’t know that I can keep.”
Who Was Eligible for Relief?
The lawsuit involved only two teams:
- 23XI Racing (co-owned by Michael Jordan, Denny Hamlin, and Curtis Polk)
- Front Row Motorsports (owned by Bob Jenkins)
Other 13 chartered teams signed the 2025 agreement and submitted declarations supporting the charter system while calling for a settlement.
What NASCAR Claimed in Its Defense
NASCAR argued:
- The charter system increased team valuations and made the sport more popular
- Teams had other racing series options available
- The Next Gen car was designed to save teams money
- Revenue-sharing increased 62% in the new charter agreement
- NASCAR invested over $1.2 billion back into the sport
Settlement Negotiations Timeline
August 5, 2025: First mediation session in New York City with mediator Jeffrey Mishkin failed to reach resolution.
October 7, 2025: NASCAR requested court-ordered settlement conference before December 1 trial.
October 21-22, 2025: Judge Bell personally supervised two days of settlement talks. All parties attended including Michael Jordan, Jim France, and NASCAR leadership. No deal reached.
December 1-10, 2025: Trial proceeded with nine days of testimony from team owners, NASCAR executives, economists, and Jim France.
December 11, 2025: Settlement announced after morning recess.
What This Means for NASCAR Stakeholders
For Race Teams:
- Certainty about charter status and revenue for remaining teams
- Potential precedent for future charter negotiations
- Resolution avoids risk of charter system being disbanded by jury verdict
For NASCAR:
- Avoids potentially devastating antitrust verdict
- Maintains control over charter system framework
- Ends public exposure of internal financial records and communications
For Fans:
- Stability in team lineup for 2026 and beyond
- All 15 teams can now focus on racing rather than litigation
- Settlement may include changes to charter terms that strengthen teams
Expert Legal Analysis
Judge Bell had warned both parties in June: “I am once again amazed at the effort going on to burn this house down over everyone’s head but I’m a fire marshal and I’ll be here in December if need be.”
The settlement avoids the risk of a jury verdict that could have:
- Forced NASCAR to disband or completely overhaul the charter system
- Set binding legal precedent on antitrust issues in sports
- Resulted in hundreds of millions in damages awards
Multiple team owners had urged settlement, fearing uncertainty about the sport’s structure if NASCAR lost at trial.
Frequently Asked Questions
Q: What were the exact settlement terms?
Settlement terms have not been publicly disclosed as of December 11, 2025. Details may be announced by the parties or emerge through court filings.
Q: Do 23XI and Front Row get their charters back?
The settlement likely resolves charter status for both teams, though specifics await formal announcement.
Q: Will other teams receive money?
The lawsuit involved only 23XI and Front Row. The 13 other chartered teams were not parties to the case.
Q: Does this make charters permanent?
Unknown. Permanent charters were a key demand during negotiations. The settlement may address charter duration.
Q: Can NASCAR still change charter terms?
Settlement terms will govern future changes. The agreement likely includes provisions addressing how charter modifications can occur.
Q: What was the case number?
23XI Racing and Front Row Motorsports v. NASCAR, filed in U.S. District Court for the Western District of North Carolina, Charlotte Division.
Q: How long did the lawsuit take?
Over 14 months from filing (October 2, 2024) to settlement (December 11, 2025).
What’s Next?
Both parties will likely file formal settlement documents with the court. Judge Bell will need to approve the settlement and dismiss the case. NASCAR and the teams may issue public statements explaining key settlement provisions.
The 2026 NASCAR season can now proceed without the uncertainty that has hung over the sport since September 2024 when 23XI and Front Row refused to sign the charter agreement.
This article will be updated as additional settlement details become available. For the latest NASCAR legal news, check court dockets through PACER or official NASCAR announcements.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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