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In a dramatic turn of events that brought an abrupt halt to a highly anticipated antitrust trial, NASCAR, 23XI Racing, and Front Row Motorsports announced a settlement on the ninth day of proceedings in a North Carolina courtroom. The agreement effectively ends the legal battle that threatened to reshape the future of stock car racing. While the specific financial terms of the resolution remain undisclosed, the core of the dispute centered on the valuation and perceived control of NASCAR charters, the perpetual licenses that guarantee a team’s entry into Cup Series races.
The trial, which had captivated the motorsports world, saw pivotal testimonies and revelations from key figures within NASCAR and its premier teams. The plaintiffs, 23XI Racing, co-owned by basketball legend Michael Jordan and NASCAR driver Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, had accused NASCAR of monopolistic practices and anti-competitive behavior. Their central argument revolved around the charter system, which they contended undervalued team participation and restricted competition, thereby stifling the sport’s growth and profitability for team owners.
Key Moments and Testimonies Unveiled
Day 9: Settlement Reached, Trial Concluded
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The culmination of the trial arrived unexpectedly with a settlement between all parties. The jury was dismissed, and joint statements were released, signaling a commitment to moving forward. A significant outcome of the settlement is the commitment to utilize permanent or evergreen charters, a long-sought goal for the team owners. The France family, who have controlled NASCAR for generations, will continue to operate the sport, and the charters that were central to the dispute will be returned to 23XI Racing and Front Row Motorsports as part of the agreement.
Day 8: 23XI/FRM Rest Their Case, NASCAR Begins Defense
Before the settlement, NASCAR’s defense began with testimony from Greg Motto, NASCAR’s Chief Financial Officer. Motto addressed the $400 million in distributions to the France family trust, countering claims from the teams’ attorney, Jeffrey Kessler, that NASCAR could have allocated a higher amount, potentially $720 million annually, for charter payments. Motto argued that such an increase would have jeopardized the financial stability of the sport. Kessler also highlighted NASCAR’s $544 million revenue from the sale of the Auto Club Speedway land, suggesting these funds could have been directed towards teams rather than debt repayment from the 2019 International Speedway Corporation merger, implying a self-serving financial maneuver by the France family.
Following Motto’s testimony, NASCAR presented John Probst, Senior Vice President of Innovation and Racing Development. Probst focused on the development of the Next Gen car and argued that teams had a "reckless" spending problem. An attempt by NASCAR to use Probst’s testimony to illustrate historical antitrust issues, referencing the American Open Wheel Split, was overruled by Judge Bell. During cross-examination, Probst was pressed on whether teams could use the Next Gen car in non-NASCAR series, to which he responded, "we would discuss it." NASCAR CEO Jim France also testified, expressing reservations about the concept of "permanent" charters in a constantly evolving sport, stating, "I’m just not comfortable making agreements that go on forever."
Day 7: Evasive Testimonies and Animated Defenses
This day featured testimony from NASCAR CEO Jim France, NASCAR Commissioner Steve Phelps, and veteran team owner Richard Childress. Both Phelps and France frequently responded with "I do not remember" or similar phrases, drawing commentary from Kessler about their lack of recall. France reiterated his opposition to permanent charters. Phelps was questioned about an email to Rick Hendrick regarding permanent charters, which he could not recall. He also addressed NASCAR’s concerns about the Superstar Racing Experience (SRX) series, noting complaints from NBC’s executive producer about SRX causing market confusion and drivers using similar sponsors and liveries to NASCAR. Phelps’ assertion that the Next Gen car was the "safest in motorsports" was met with visible reactions from drivers in attendance, particularly in light of Kurt Busch’s career-ending concussion in 2022. Phelps also explained the financial pressures faced by Furniture Row Racing, the 2017 Cup Series champions, citing increased technical alliance costs from Joe Gibbs Racing after their championship victory.
Richard Childress’s testimony became animated as he addressed recent unsealed messages that showed NASCAR leadership disparaging him. He asserted his desire for permanent charters and was compelled by Judge Bell to discuss a potential deal with former driver Bobby Hillin Jr. to acquire shares in his organization, including a third charter. Childress revealed the deal fell apart due to a lack of funds from Hillin’s group, and he presented audited financial statements showing RCR’s consistent profitability, emphasizing that his other businesses were crucial for funding his NASCAR operations.
Day 6: Economic Expert Quantifies Damages
Economist Edward Snyder, testifying for the teams, presented his analysis of NASCAR’s business practices. Snyder argued that NASCAR had erected "barriers" to competition and that the sanctioning body was paying teams below market value. He cited venue exclusivity and restrictions on competing series as examples of anti-competitive behavior. Snyder calculated total damages owed to 23XI and FRM at approximately $364.7 million, with $215.8 million for 23XI and $148.9 million for FRM. He drew comparisons to Formula 1’s Concorde Agreement. NASCAR’s legal team attempted to discredit Snyder’s expertise and findings during cross-examination.
Day 5: Michael Jordan and Heather Gibbs Take the Stand
NBA legend Michael Jordan, co-owner of 23XI Racing, testified about his significant investment and desire for success in NASCAR, explaining the team’s pursuit of a third charter as a means to improve their championship chances. He drew parallels between NASCAR and the NBA, advocating for a more equitable partnership between teams and the sanctioning body, suggesting a 45% revenue split as a fairer model. Jordan also stated that "someone had to step forward to challenge NASCAR." NASCAR’s attorneys attempted to portray Jordan’s financial advisor, Curtis Polk, as the instigator of the lawsuit with no genuine interest in the sport.
Heather Gibbs, daughter-in-law of Joe Gibbs Racing founder Joe Gibbs, recounted the stressful "take-it-or-leave-it" deadline imposed by NASCAR for the 2025 Charter Agreement. She described the agreement as hastily drafted and lacking guarantees for broadcast revenue. Gibbs shared that Joe Gibbs pleaded with Jim France, who responded with a dismissive stance on the number of charters NASCAR would retain. NASCAR President Steve O’Donnell also testified, reiterating concerns about SRX, particularly when Chase Elliott appeared in a NAPA-sponsored car in the series. O’Donnell’s claims about SRX’s potential return were reportedly contradicted by sources close to the series. He also highlighted the increased value of charters, suggesting it reflected confidence in the sport despite the ongoing litigation. Judge Bell cautioned NASCAR that "growing the sport" was not a valid defense and noted the trial’s likely extension beyond its scheduled timeframe.
Day 4: SRX as a Competitive Threat
The focus of Day 4 shifted to the Superstar Racing Experience (SRX) series and NASCAR’s alleged efforts to stifle its competition. Previously unsealed messages revealed NASCAR leadership viewed SRX as a threat, particularly due to its utilization of popular short tracks and its potential to draw talent and fan interest away from NASCAR. Attorney Jeffrey Kessler argued that NASCAR’s actions, including preventing Speedway Motorsports from hosting SRX events, demonstrated an anti-competitive strategy. Steve O’Donnell testified that NASCAR’s negotiations for new broadcast rights were complicated by SRX’s growing resemblance to NASCAR, leading to their objections. He also cited intellectual property concerns and the successful challenge by LIV Golf to the PGA Tour as motivations for NASCAR’s scrutiny. Unsealed communications suggested internal discussions about a new financial model for teams, with Jim France reportedly being a significant obstacle. O’Donnell also disclosed that NASCAR incurred substantial losses on the Chicago Street Course and Mexico City events, framing them as strategic investments for broadcast partnerships. Front Row Motorsports owner Bob Jenkins also testified, detailing the significant increase in car component costs under the Next Gen model and his personal belief in the system despite financial losses.
Day 3: Prime Grilled, Jenkins Testifies on Financial Struggles
NASCAR Executive Vice President and Chief Strategy Officer Scott Prime faced extensive cross-examination regarding the "goodwill provision" in the Charter Agreement, which he characterized as an anti-competitive clause. Kessler argued that this provision, coupled with restrictions on the Next Gen car’s intellectual property, served to restrain trade. Prime also addressed NASCAR’s exclusivity agreements with tracks, a point contested by Kessler. The "Amanda (Oliver) Chart," illustrating the teams’ limited successes in negotiations, was presented. Prime acknowledged the "gun to the head" nature of NASCAR’s September 6 deadline, a point seized upon by Kessler. Bob Jenkins, the sole team owner to stand with 23XI against NASCAR’s eleventh-hour agreement, testified about his team’s consistent annual losses of $6.8 million and the substantial increase in costs under the Next Gen car. Jenkins stated his commitment to his employees as his primary motivation for pursuing change. He described the September 6 deadline as "insulting" and "backwards," recalling the emotional impact on Joe Gibbs. Judge Bell expressed concern over the trial’s pace and potential redundancies.
Day 2: Hamlin’s Frustrations, Prime’s Explanations
Denny Hamlin endured a tense cross-examination, repeatedly asserting that NASCAR was not a monopoly. He shared personal frustrations with Jim France stemming from a 2022 banquet, where France reportedly cited teams’ excessive spending as NASCAR’s core problem. Hamlin countered that cost-cutting measures were not a sustainable solution for growth. His annual driver salary of $14 million was also discussed. Scott Prime was questioned about internal NASCAR discussions regarding charter terms and Jim France’s role in shutting down negotiations. Prime also addressed NASCAR’s historical efforts to prevent breakaway series, likening them to the CART/IRL split in open-wheel racing, and discussed "Project Gold Codes," a contingency plan for potential boycotts or non-compliance with the charter agreement.
Day 1: Jury Selection, Opening Statements, and Initial Testimony
The trial commenced with jury selection, followed by opening statements from both sides. Denny Hamlin was the first witness, testifying for 40 minutes about the challenges teams face in competing with NASCAR for sponsorships and employees. NASCAR’s legal team framed the lawsuit as an attack on the charter system by teams unwilling to sign the new agreement. Kessler, representing the teams, aimed to establish an anti-competitive strategy orchestrated by Jim France, supported by unsealed text messages.
The resolution of this antitrust trial marks a significant moment for NASCAR, bringing an end to a period of intense legal scrutiny and internal division. The agreement to implement permanent charters signals a potential shift towards a more stable and equitable partnership between NASCAR and its team owners, a development that could influence the sport’s trajectory for years to come.
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