Antitrust Trial Concludes as NASCAR, 23XI Racing, and Front Row Motorsports Reach Landmark Settlement

Charlotte, NC – After fourteen months of legal proceedings and a highly publicized antitrust trial, NASCAR, 23XI Racing, and Front Row Motorsports have reached a comprehensive settlement, bringing an end to the contentious legal battle that threatened to reshape the landscape of stock car racing. The agreement, finalized in the Western District of North Carolina before Judge Kenneth D. Bell, was announced on the ninth day of the trial, averting a potentially lengthy and complex jury deliberation.

Lead attorney for 23XI Racing and Front Row Motorsports, Jeffrey Kessler, formally informed Judge Bell of the resolution at 10:03 a.m. in the Potter Courtroom. While the verbal declaration signaled the end of the trial, legal representatives from both sides immediately convened in a separate room to draft and codify the written settlement. Judge Bell, keen to expedite the process, remained on the bench, stating his intention to "encourage your progress."

The dramatic conclusion unfolded on a day that had been scheduled for the resumption of witness testimony. The jury, having been dismissed earlier in the morning, was recalled by Judge Bell, who explained that their patience had been rewarded with a significant time-saving resolution. "As so happens, an hour turns into two but we indeed saved you a great deal of time. This trial has been settled, meaning, it’s over," Judge Bell announced, acknowledging the jury’s dedication. He commended their attentiveness, noting that their understanding of the case details was exemplary and had facilitated a resolution that even extensive court-supervised mediation had not achieved.

The lawsuit, filed by 23XI Racing co-owners Michael Jordan and Denny Hamlin, and Front Row Motorsports, alleged anti-competitive practices by NASCAR, primarily focusing on the organization’s alleged monopolistic control over the sport. Central to the dispute were the terms surrounding the charter system, a crucial element of NASCAR’s economic structure that guarantees teams a place in the Cup Series and a share of revenue. The teams argued that the proposed 2025 charter terms, which they felt fell short of their "four pillars" of negotiation, were restrictive and detrimental to their long-term viability and growth.

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Specifically, the plaintiffs had sought an annual revenue distribution of $720 million from NASCAR, while the sanctioning body’s offer stood at $431 million. Furthermore, the teams desired permanent charters, a concept akin to ownership stakes in professional sports leagues, rather than the proposed seven-year agreements with an additional seven-year option that did not guarantee revenue increases. Another contentious point was the "three-strike rule," which allowed teams to formally dispute NASCAR decisions, with a third strike potentially voiding charter exclusivity. NASCAR had proposed removing this rule for 2025, replacing it with a council that offered consultation but no voting power.

The settlement, though not immediately released in its entirety, has been provisionally detailed. Charters are now effectively transformed into perpetual franchises, granting teams a level of security comparable to franchises in traditional "stick-and-ball" sports. However, unlike those franchises, the teams do not hold equity in NASCAR itself, which remains under the ownership and operational control of the France family, a lineage that has guided the sport since its inception in 1948. This arrangement provides 23XI and Front Row with "evergreen charters," significantly increasing their enterprise value without direct cost to NASCAR, while also allowing the France family to retain their existing assets and operational control. NASCAR has scheduled a call with non-party teams to discuss the implementation and ratification of the new agreement, which requires the assent of all involved parties.

The terms of the settlement address the core issues raised in the lawsuit. The previously contested three-strike rule has been modified to a "five-strike rule," providing a more robust mechanism for teams to address grievances. This represents a significant concession from NASCAR, demonstrating a willingness to incorporate greater team input into the sport’s governance.

Following the court’s adjournment, representatives from all parties emerged from the courthouse, striking a markedly different tone than that which characterized the preceding weeks. Lead attorney Jeffrey Kessler expressed his satisfaction, stating, "I’m pleased to say the parties have positively settled this matter in a way that will benefit the industry going forward."

NASCAR attorney Lawrence Buterman echoed this sentiment, highlighting the preservation of the charter system as a key victory for the sanctioning body. "One of the key issues here for NASCAR has always been the preservation of the charter system," Buterman remarked. "And we are thrilled that through this system we get to preserve the charter system for the teams and stakeholders while at the same time providing NASCAR with the flexibility to run the sport in the best interest of all of the shareholders."

Michael Jordan, a prominent figure in the lawsuit and co-owner of 23XI Racing, emphasized the importance of collaboration for the sport’s growth. "I’ve said this from Day 1: Only way this sport is going to grow is we have to find some synergy between the two entities, and I think we’ve gotten to that point," Jordan stated. "Unfortunately, it took 16 months to get here, but I think, level heads got us to this point to where we can actually work together and grow this sport. I’m very proud about that. And I think (France) feels the same."

Jim France, CEO of NASCAR, concurred, articulating a desire to refocus on the core of the sport. "We can get back to focusing on what we really love, and that’s racing," France said. "We spent a lot of time not really focused on that as much as we need to be. So, I feel like we’ve made a very good decision here together and we have a big opportunity to continue growing the sport."

When questioned about the catalyst for the settlement, Jordan attributed it to "level heads," a response that elicited laughter from those present. He elaborated, "In all honesty, when you get to the finish line sometimes, you have to think, not just about yourself but the sport as a whole. I think both parties got to that point and we realized we have an opportunity to do this, so we dove in and actually did it. Unfortunately, it took us this long, but we got there and that’s all that matters." Jordan affirmed that both parties deemed the resolution worthwhile, acknowledging that compromise was essential. "I think we both compromised on our agendas and we both came to the conclusion that this is better for the sport," he added.

The immediate aftermath saw a unified front emerge. NASCAR attorney Chris Yates and Stephenson, personal lawyer for NASCAR CEO Jim France, along with Kessler, encouraged a return to racing, with Stephenson exclaiming, "let’s go race." Denny Hamlin, a key figure in 23XI Racing, expressed optimism about the settlement’s impact, stating, "I feel like everything within this settlement is going to grow this sport and it’s going to be better for everyone, there’s no doubt about."

While the primary legal battles have concluded, some minor procedural matters remain. Danielle Williams, an attorney for 23XI and Front Row, indicated a desire to further discuss the source of specific news and documents related to Bobby Hillin, a matter Judge Bell suggested would be addressed at a later time. The settlement marks a significant moment for NASCAR, signaling a commitment to collaboration and a renewed focus on the future of the sport, with the ultimate beneficiaries expected to be the loyal fanbase.