CHARLOTTE, N.C. — The landmark settlement that ended the antitrust lawsuit filed by 23XI Racing and Front Row Motorsports against NASCAR saw the league make several notable concessions beyond just granting teams “evergreen” charters, comparable to a franchise in most professional sports leagues, multiple team sources familiar with the settlement terms have told The Athletic.

In addition to all 15 charter-holding teams having their charters become permanent instead of expiring at a set end date, the settlement terms include teams receiving a say in governance and a greater percentage of various NASCAR revenue streams.

The combined gains are considered a massive win by 23XI and Front Row that will benefit every Cup Series organization, as the teams achieved many of the goals they laid out when the most recent charter negotiations began more than two years ago.

The exact terms of the revised charter agreement are still being sorted out, but the pending revisions were outlined with the charter-holding teams in a meeting Thursday afternoon, sources said.

These changes follow NASCAR and 23XI/Front Row submitting their settlement terms Thursday morning to Kenneth D. Bell, the presiding judge in the lawsuit filed last October by the two teams. Bell agreed, ending the contentious lawsuit that has roiled the sport for the past 14 months.

Under the previous charter agreement, which expired at the end of the 2024 NASCAR season, teams could issue a “strike” whenever NASCAR instituted a rules change they didn’t like. Over the span of the agreement, first enacted in 2016, any team that issued three strikes then had the ability to race in a competing series without punishment.

At the behest of NASCAR, and to the dismay of the teams, the “three-strike rule” was removed from the 2025 charter agreement. That rule will now be reinserted, those sources say, though expanded to five strikes.

Teams also will receive an unknown percentage of NASCAR’s international media rights deals, of which they previously received zero, and a one-third portion of new business deals involving teams’ intellectual property.

In addition to the gains 23XI and Front Row achieved for every team, both organizations will have their combined six charters returned to them. They lost the charters, valued at as much as $300 million total based on recent sales (the last charter sale was for $45 million), during the ongoing litigation. Ownership of one of the 36 available charters provides certain financial guarantees and entry into every race in the sport’s premier Cup Series.

NASCAR also agreed to pay monetary damages to 23XI and Front Row, according to sources, though the exact figure is unknown.

Roger Penske statement on today’s settlement:   

“Today’s settlement is tremendous news for the industry. We are stronger together as a sport and the agreement today allows all of us to focus on what’s important, the continued growth of NASCAR. The sport has never been more competitive and today’s resolution provides the entire industry with a platform that strengthens our business and allows us to continue to entertain our millions of passionate fans in a unified way.”

“My goal is simple — contend for the championship, fight for race wins and podium results, continue improving every weekend, and make the most of the opportunity to grow through the ARCA races as well. I’m grateful to Nick (Tucker) and Joe (Tovo) and everyone at Nitro Motorsports for believing in me and giving me the tools to keep moving forward.”

“Sam has been a key part of our program and someone we’ve believed in from the start,” added Nitro Motorsports co-owner Nick Tucker. “He’s mature, fast, and incredibly focused — exactly what you need to succeed.

“His pace last year showed he’s ready to fight at the front and giving him a couple of ARCA starts will only accelerate his growth and possibly provide a look into the future. We’re excited to have him back and fully expect him to be a championship contender in 2026.”

23XI Racing co-owners Michael Jordan and Denny Hamlin were smiling like Cheshire cats after NASCAR settled their antitrust lawsuit on Day 9 of the trial. Jordan and Hamlin’s Cup Series team, alongside Front Row Motorsports, launched an antitrust lawsuit against the sanctioning body in October of last year after refusing to sign the latest charter agreement, accusing NASCAR of engaging in monopolistic practices.

Nearly 14 months of legal mud-slinging ensued, with both sides taking dents as the lawsuit rumbled on. 23XI and FRM were granted a preliminary injunction in December of last year, allowing them to maintain their chartered status for the 2025 NASCAR Cup Series season.

However, that injunction was overturned in June this year on appeal, forcing both Cup Series outfits to run as “open” teams for the remainder of the season. That decision came at a considerable cost for 23XI and FRM, who were no longer guaranteed a spot in races, as well as incurring other financial losses, such as losing the shared revenue guaranteed with chartered status.

23XI and FRM stayed the course, and Hamlin issued a bullish message earlier this year about the scheduled trial, claiming “all will be exposed,” before partaking in a playoff run that saw the future NASCAR Hall of Famer come within a few laps of finally being crowned a Cup Series champion after two decades in the sport. The trial officially got underway on December 1 in a North Carolina courthouse, with 23XI co-owners Jordan and Hamlin well-received outside the court by fans, and ever-present throughout the proceedings.

Key testimonies from Hamlin and Heather Gibbs had an impact, as did Richard Childress’, which could still put NASCAR in a difficult spot. NASCAR found documents that revealed some of his non-NASCAR-related finances — finances that, he claims, were protected by a non-disclosure agreement.

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On Tuesday, Childress was hit with a line of questioning he hadn’t anticipated, leaving him clearly irritated. Attorneys pressed him about his efforts to court an investment firm to buy a portion of his 60% ownership in Richard Childress Racing, the team he founded in 1969. Childress believed those talks—with a group involving former NASCAR driver Bobby Hillin Jr., as well as the materials Hillin circulated to prospective investors—were private and would remain confidential.

To make matters worse, before Childress took to the stand, NASCAR Commissioner Steve Phelps had some unsavory opinions of the Cup Series team owner, as revealed in released text messages. What was revealed was “shockingly offensive” to key NASCAR sponsor Bass Pro Shops, which released a no-nonsense defense of Childress. NASCAR had barely started its trial defense when the lawsuit was settled on Day 9 on Thursday. The two parties reached an agreement, which pleased Judge Kenneth D. Bell, who had warned before the trial of the potential harm the case could cause.

Statements were released by all key players, from Jordan, Hamlin, 23XI co-owner Curtis Polk, FRM owner Bob Jenkins, and NASCAR CEO and Chairman Jim France. However, from emerging details, 23XI and FRM got the sweeter end of the bargain, which involved permanent “evergreen charters,” as well as receiving a reportedly substantial financial settlement involving money they had lost from racing as “open” teams. The settlement has been celebrated across the sport, with the likes of Roger Penske and Rick Hendrick releasing statements of optimism, looking forward to the future of NASCAR, with all eyes on the season-opening Daytona 500 next February. The Daily Express Sport U.S. looks at five key takeaways from the antitrust trial and settlement.

Permanent charters

In the post-court briefing, officials described the charters as effectively “evergreen,” meaning they’re expected to remain in place for the long term. That stability is likely to drive up charter values, since investors are far more willing to buy into an asset with a secure future than one that might become irrelevant within a few years.

Permanent charters also create a more reliable environment for sponsorship. NASCAR deals today are often short-term, making it difficult for brands to build continuity when teams fold or charters change hands. With greater financial stability and potentially higher revenue, teams will be better positioned to secure longer, stronger partnerships, which will help make team ownership more sustainable and financially worthwhile.

23XI and FRM got the better deal

23XI and FRM were the only two Cup Series teams to take the stand against NASCAR over its charter agreement. They put it all on the line, taking significant risk as other teams watched on, and the responses from rival outfits post-trial suggest that some felt similarly.

Unified messages were spoken outside on the court steps, but with Jordan, Hamlin, and Co. grinning like Cheshire cats, and getting NASCAR to the negotiating table, securing huge wins for their teams as well as the rest of the sport, is cause for celebration. They took on the sanctioning body and secured some historic wins, which could help transform NASCAR’s future.

NASCAR fans’ perception of leadership sinks further

There wasn’t much love lost between fans and leading NASCAR figures before the trial got underway. Fans had lingering frustrations over the Next Gen car and the current playoff system. Many fans believe that NASCAR’s leadership is out of touch with what race fans actually want. Texts, email exchanges, and the trial haven’t done NASCAR chiefs any favors in rebuilding bridges with the fans who have long felt ignored.

NASCAR leadership changes

With major sponsors such as Johnny Morris and Bass Pro Shops openly questioning NASCAR leadership, the spotlight on these issues is sure to intensify and could drive meaningful change. Morris took particular issue with Phelps’ “shockingly offensive” insults aimed at Childress and felt compelled to write a no-nonsense, brutally honest letter to NASCAR and The France Family.

Phelps appeared to bear the heaviest criticism, and he was largely absent from the post-court media session. Potential changes to NASCAR leadership are worth watching.

Unresolved Richard Childress issue

Permanent charters would secure RCR’s long-term future, Childress testified. After being left angered by NASCAR’s knowledge of a potential sale of a significant stake in RCR protected under an NDA, Childress is incentivized to stay put in a sport he has helped build for several decades with greater financial security.

As the trial wrapped up, plaintiff attorney Danielle Williams still had unresolved matters to address with District Judge Kenneth Bell. She pressed for clarity on how NASCAR obtained documents detailing portions of Richard Childress’s personal, non–NASCAR financial dealings—a non-disclosure agreement shielded records he insists. The “how” NASCAR obtained such documents could be one to watch.