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Charlotte, NC – A protracted antitrust lawsuit between NASCAR and prominent team owners 23XI Racing and Front Row Motorsports has concluded with a settlement, bringing a close to 14 months of legal contention. The agreement, announced on the ninth day of the trial in the Western District of North Carolina, is being hailed by all parties as a pivotal moment that will allow the sport to refocus on its core – the fans and the ongoing evolution of NASCAR content.
Lead attorney Jeffrey Kessler, representing 23XI Racing and Front Row Motorsports, formally communicated the resolution to Judge Kenneth D. Bell. While the verbal announcement signaled the end of the trial, representatives from both sides reconvened to formalize the agreement in writing, a process Judge Bell encouraged by remaining on the bench to facilitate progress.
The day began with Judge Bell excusing the jury, informing them of the potential for significant time savings. "I need to sacrifice an hour of your time to hopefully save several hours more," he stated, a sentiment that proved prescient as the legal teams worked towards a resolution. The absence of courtroom monitors, a staple of the trial’s previous days, further indicated a shift away from witness examination and towards negotiation.
The tension in the courtroom was palpable as key figures emerged from private discussions. Michael Jordan, co-owner of 23XI Racing, alongside fellow owner Denny Hamlin and Curtis Polk, appeared before the finalization of testimony. Polk, who had yet to testify, was permitted to remain in the courtroom following an inquiry by Judge Bell and a lack of objection from NASCAR’s legal counsel, Lawrence Buterman. Buterman, whose interactions with opposing counsel had evolved from adversarial document discovery to amicable handshakes, confirmed NASCAR’s consent. John E. Stephenson, personal lawyer for NASCAR CEO Jim France, also engaged in a handshake with Jordan, signifying a thawing of relations.
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Kessler then briefly withdrew to "close the loop" on the settlement discussions, returning to inform Judge Bell that the agreement was being drafted. By 10:21 a.m., Buterman presented the signed settlement to the judge. After a brief review, Judge Bell reconvened the jury at 10:26 a.m., delivering the news: "This trial has been settled, meaning, it’s over."
Judge Bell acknowledged that the jury’s dedication might feel unrewarded by the lack of a verdict, but commended their attentiveness. "You knew the details of this case and I commend you for that," he stated, recognizing their crucial role in observing the proceedings. He expressed a wish that the settlement could have been reached sooner, emphasizing its positive implications for "the entity of NASCAR, the NASCAR industry, the teams, the drivers, and as you have so often said yourselves, ultimately the fans."
The settlement, while not immediately released in its entirety, has been provisionally detailed by the Associated Press and FOX Sports. A central tenet of the agreement is the transformation of NASCAR charters into effectively permanent franchises, mirroring the structure of traditional "stick-and-ball" sports franchises. This grants teams greater security and increases their enterprise value, a key objective for 23XI Racing and Front Row Motorsports. However, unlike traditional franchises, these teams will not hold equity in NASCAR itself. The France family will retain operational control of the sanctioning body.
The lawsuit stemmed from allegations of anti-competitive conduct by NASCAR, which the plaintiffs argued used its monopsony power to negatively impact team finances and competition. The core dispute revolved around the 2025 charter terms. While negotiations had been ongoing, the initial proposals from NASCAR fell short of the teams’ collective desires. The 15 charter-holding teams had sought an annual payout of $720 million, but ultimately agreed to $431 million annually with 13 of the teams. Crucially, NASCAR did not commit to making the charter system permanent in the initial proposals, offering a seven-year term with a seven-year option, a structure that lacked guaranteed revenue increases during the option period.
Furthermore, the "three-strike" rule, which allowed teams to challenge NASCAR’s decisions, was not renewed in the initial 2025 terms. This rule, introduced in the 2016 charter agreement, provided a mechanism for teams to void exclusivity agreements if NASCAR accumulated three "strikes." In its place, NASCAR proposed a council for discussion, but without any voting or veto power for the teams. The settlement now introduces a "five-strike" rule, offering a slightly more robust avenue for team input.
Following the court dismissal, representatives from all parties addressed the media outside the courthouse. Kessler expressed satisfaction with the outcome, stating, "I’m pleased to say the parties have positively settled this matter in a way that will benefit the industry going forward." Buterman highlighted NASCAR’s commitment to preserving the charter system while maintaining operational flexibility.
Michael Jordan articulated a vision of synergy between team owners and NASCAR leadership. "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 remarked. He acknowledged the lengthy process but emphasized the importance of "level heads" in reaching a collaborative agreement. Jim France echoed this sentiment, stating, "We can get back to focusing on what we really love, and that’s racing." He added, "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 asked about the catalyst for the settlement, Jordan cited "level heads" and a collective realization that compromise was necessary for the sport’s overall well-being. He acknowledged that both parties compromised on their agendas to reach a conclusion deemed beneficial for NASCAR. "We both compromised on our agendas and we both came to the conclusion that this is better for the sport," Jordan stated.
Denny Hamlin expressed his optimism, asserting, "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."
NASCAR has scheduled a call for Thursday with non-party teams to discuss the implementation and ratification of the new agreement, which requires unanimous consent from all charter holders.
While the primary focus has shifted to the future, some legal loose ends remain. Danielle Williams, an attorney for 23XI and Front Row, indicated a desire to further discuss the origins of certain news reports and documents, a matter Judge Bell deferred to a later date. The resolution of this significant legal dispute marks a new chapter for NASCAR, one that prioritizes collaboration and a unified approach to enhancing the fan experience and the sport’s continued growth.
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