NASCAR, 23XI Racing, and Front Row Motorsports Forge Path to Stability with Landmark Settlement

Charlotte, NC – A protracted legal battle that cast a shadow over the future of NASCAR team ownership has officially concluded, as NASCAR, 23XI Racing, and Front Row Motorsports announced a mutually agreed-upon settlement today. The resolution brings an end to over a year of legal wrangling and a nine-day trial that explored the intricate dynamics of team ownership and governance within America’s premier stock car racing series.

The announcement, made outside the courthouse with key figures from all parties present, signifies a pivotal moment for the sport. Michael Jordan and Denny Hamlin, co-owners of 23XI Racing, stood alongside Jim France, CEO and Chairman of NASCAR, signaling a unified front moving forward. A cornerstone of this agreement is the formalization of permanent charters for NASCAR Cup Series teams, with an updated charter agreement slated for finalization ahead of the 2026 season. This development is expected to provide a crucial layer of long-term stability and foster an environment conducive to meaningful growth for all participating teams.

In a joint statement released by the involved parties, the sentiment was one of shared commitment and optimism for the sport’s future:

"NASCAR, 23XI Racing, and Front Row Motorsports are pleased to announce a mutually agreed-upon resolution that delivers long-term stability and creates the conditions for meaningful growth for all teams in a more competitive environment," the statement read. "This resolution reflects our shared commitment to maintaining a fair and equitable framework for long-term participation in America’s premier motorsport, one that supports teams, partners, and stakeholders while ensuring fans enjoy uninterrupted access to the best racing in the world. The agreement allows all parties to move forward with a unified focus on advancing stock car racing and delivering exceptional competition for our fans."

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The joint statement further elaborated on the implications of the settlement: "With this matter now resolved, all parties look forward to working together, alongside all chartered race teams, to deliver world-class events, dynamic sponsorship and partner activation opportunities, and continued growth for generations to come. As a condition of the settlement agreement, NASCAR will issue an amendment to existing charter holders detailing the updated terms for signature, which will include a form of ‘evergreen’ charters, subject to mutual agreement. The financial terms of the settlement are confidential and will not be released."

The statement underscored the underlying shared passion for the sport, stating, "What all parties have always agreed on is a deep love for the sport and a desire to see it fulfill its full potential. This is a landmark moment, one that ensures NASCAR’s foundation is stronger, its future is brighter, and its possibilities are greater. We extend our sincere thanks to Judge Kenneth Bell and mediator Jeffrey Mishkin for their professionalism, and guidance throughout this process and to their jury for their time."

The legal dispute originated from concerns raised by 23XI Racing and Front Row Motorsports regarding the economic model and governance structure of NASCAR, particularly concerning the value and perpetuity of team charters. The lawsuit aimed to address issues related to revenue distribution, competitive balance, and the long-term viability of independent team ownership within the Cup Series.

Michael Jordan, a prominent figure in the sports world and co-owner of 23XI Racing, expressed his perspective on the resolution: "From the beginning, this lawsuit was about progress. It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans. With a foundation to build equity and invest in the future and a stronger voice in the decisions ahead, we now have the chance to grow together and make the sport even better for generations to come. I’m excited to watch our teams get back on the track and compete hard in 2026."

Denny Hamlin, a seasoned NASCAR Cup Series driver and co-owner of 23XI Racing, articulated his deep connection to the sport and the motivations behind pursuing legal action: "I’ve cared deeply about the sport of NASCAR my entire life. Racing is all I’ve ever known, and this sport shaped who I am. That’s why we were willing to shoulder the challenges that came with taking this stand. We believed it was worth fighting for a stronger and more sustainable future for everyone in the industry. Teams, drivers, and partners will now have the stability and opportunity they deserve. Our commitment to the fans and to the entire NASCAR community has never been stronger. I’m proud of what we’ve accomplished, and now it is time to move forward together and build the stronger future this sport deserves."

Bob Jenkins, owner of Front Row Motorsports, a team that has been a consistent presence in the Cup Series, shared his optimism for the future: "After more than 20 years in this sport, today gives me real confidence in where we’re headed. I love this sport, and it was clear we needed a system that treated our teams, drivers, and sponsors fairly and kept the competition strong. With this change, we can finally build long-term value and have a real voice in NASCAR’s future. I’m excited for the road ahead—for the people in the garage, the folks in the stands, and everyone who loves this sport."

Curtis Polk, also a co-owner of 23XI Racing and a member of the Team Negotiating Committee, highlighted the focus on economic reform: "My goal as a member of the Team Negotiating Committee was to help create an economic model that would create a more sustainable model for teams and create a more equitable and transparent system within NASCAR. This settlement achieves significant progress toward the Four Pillars. The result brings NASCAR and the chartered teams into better alignment and supports future growth and sustainability for all stakeholders and a better sport for the fans."

NASCAR’s leadership, represented by Jim France, emphasized the organization’s long-standing commitment to the sport and its fans, while acknowledging the value of the charter system: "This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans, which has always been our highest priority since the sport was founded in 1948. We worked closely with race teams and tracks to create the NASCAR charter system in 2016, and it has proven invaluable to their operations and to the quality of racing across the Cup Series. Today’s agreement reaffirms our commitment to preserving and enhancing that value, ensuring our fans continue to enjoy the very best of stock car racing for generations to come. We are excited to return the collective focus of our sport, teams and racetracks toward an incredible 78th season that begins with the Daytona 500 on Sunday, Feb. 15, 2026."

The introduction of the NASCAR charter system in 2016 aimed to provide a more stable framework for team ownership, granting teams guaranteed entry into Cup Series races and a share of certain revenues. However, the lawsuit brought to light ongoing discussions and disagreements regarding the terms, duration, and economic benefits associated with these charters. The "evergreen" charter concept, as mentioned in the settlement, suggests a move towards a more permanent and self-sustaining ownership model, potentially removing the cyclical renewal and renegotiation processes that have characterized the system.

The resolution is expected to have a profound impact on the strategic planning and investment capabilities of NASCAR teams. With enhanced long-term stability, teams can now more confidently invest in infrastructure, technology, and personnel, potentially leading to improved on-track performance and a more competitive landscape. Furthermore, a stronger alignment between NASCAR and its chartered teams could foster greater collaboration on initiatives aimed at expanding the sport’s reach, enhancing fan engagement, and securing lucrative sponsorship opportunities.

The legal proceedings themselves, while intense, have ultimately served as a catalyst for dialogue and compromise. The presence of prominent figures like Jordan and Hamlin, alongside NASCAR’s top leadership, underscores the significance of this settlement not just as a legal resolution, but as a strategic realignment for the future of NASCAR. The focus now shifts from litigation to collaboration, with all parties eager to channel their energies toward the upcoming seasons and the continued evolution of stock car racing. The upcoming 2026 season, marked by the finalized charter agreement, is anticipated to be a new era for the sport, built on a foundation of shared vision and renewed commitment.