NASCAR settles federal antitrust lawsuit with Michael Jordan’s 23XI Racing, Front Row Motorsports

CHARLOTTE, N.C. — A settlement has been reached in the legal battle between NASCAR and two race teams over antitrust allegations, with Michael Jordan’s 23XI Racing and Front Row Motorsports securing what they’d been pushing for all along: permanent charters, which is NASCAR’s version of franchises. 

Jeffrey Kessler, the attorney representing 23XI Racing, owned by basketball icon Michael Jordan and longtime racer Denny Hamlin, and Front Row Motorsports, announced the settlement ahead of Thursday’s proceedings. 

Hamlin said the litigation was rooted in protecting the future of the organization.

“You always need people within a company to make sure that everyone’s business is running properly, and that’s essentially what we were trying to protect with this lawsuit,” Hamlin said.

Kessler’s announcement followed a lengthy sidebar called by U.S. District Judge Kenneth Bell, who reportedly told the jury the talks would save them “a lot of time.” Kessler then led Jordan and 23XI co-owner Denny Hamlin, as well as Front Row owner Bob Jenkins, out of the courtroom to another room for more talks.

“Like two competitors, obviously we tried to get as much done in each other’s favor, but I think collectively, and I don’t think Jim is any opposite of me, the fans have always been the best solution to this, to the sport itself,” Jordan said. “The only way this sport’s going to grow, we have to find some synergy with both entities. I think we’ve gotten to that point. Unfortunately, it took 16 months to get here, but I think level heads have got us to this point where we can work together and grow the sport. I’m very proud of that.”

The settlement comes after several days of intense testimony, including Hamlin, Jordan, and NASCAR chairman Jim France. Testimony throughout the trial highlighted the core issue driving the lawsuit: NASCAR’s refusal to grant teams permanent charters and its hard-line stance during two years of revenue-sharing negotiations.

Jordan said the final agreement required both sides to think beyond individual interests.

“Sometimes you have to think not just for yourself but about the sport as a whole,” Jordan said. “Both parties realized we had an opportunity to settle this, and we dove in and actually did it. Unfortunately, it took us that long, but we got here and that’s all that matters.”

Financial terms of the settlement won’t be disclosed, but NASCAR confirmed that charters will be permanent. Front Row and 23XI both raced without charters for a significant portion of the 2025 season. 

NASCAR, 23XI Racing and Front Row Motorsports issued a joint statement on the settlement: 

“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.

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.

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.

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.”

Rick Hendrick, owner of Hendrick Motorsports, also released the following statement on the settlement.

“Millions of loyal NASCAR fans and thousands of hardworking people rely on our industry, and today’s resolution allows all of us to focus on what truly matters – the future of our sport. For more than 40 years, NASCAR racing has been my passion. I believe deeply in what we can accomplish when we work together. This moment presents an important opportunity to strengthen our relationships and recommit ourselves to building a collaborative and prosperous future for all stakeholders. I’m incredibly optimistic about what’s ahead. When our industry is united, there’s no limit to how far we can go or how much we can grow the sport we love.”

According to the Associated Press, NASCAR Chairman Jim France testified Tuesday that he has not changed his position on permanent charters, despite pleas from team owners and evidence showing he entered negotiations determined to “win.” France’s stance, coupled with NASCAR’s final offer that kept charters renewable and denied teams a voice in governance, prompted Michael Jordan’s 23XI Racing and Front Row Motorsports to reject the deal and sue instead.

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