CHARLOTTE, N.C. — Michael Jordan’s race team will continue to compete in NASCAR.

With uncertainty of what would happen to Jordan’s 23XI Racing as well as Front Row Motorsports as they sued NASCAR on antitrust grounds, the two sides settled Thursday after a brutal 15-plus months of sparring in court, especially in the eight days of trial.

The settlement awards charters to 23XI Racing and Front Row Motorsports — both had relinquished their charters when they didn’t sign the 2025-31 agreement to pursue the lawsuit — as well as an amendment to the agreement for all teams with a form of “evergreen” charters, subject to mutual agreement.

Financial terms of the settlement were not disclosed.

“Both parties feel like it’s worth it — because we understand we had to work together,” Jordan said outside the courthouse. “Compromise in every negotiation is one of the toughest things that you can do. 

“And I think that you can say that we both compromised on both of our agendas, and I think we both come to the conclusion that it’s better for the sport.”

Michael Jordan and 23XI Racing are pleased with their settlement with NASCAR.

Jordan said they were like “two competitors” in getting the settlement done.

“The fans have always been the best solution to this, over us here, to the sport itself — the only way that, and I’ve said this from Day 1, the only way this sport is going to grow is we have to find some synergy between the two entities,” Jordan said.

“And 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 to where we can actually work together and really grow this sport. I’m very proud about that.”

NASCAR Chairman Jim France stood beside Jordan outside the courthouse.

“I feel the same,” France said. “We can get back to a focus on what we really love, and that’s racing. … We made a very good decision here together. We have a good opportunity here to grow the sport.”

France had just finished testifying Wednesday — Jordan testified the previous Friday — and there were at least two days of witnesses scheduled. But testimony never resumed Thursday as the judge waited two hours for the sides to hash out the settlement.

“I grew up watching [Jim’s] father build this sport,” Jordan said. “I didn’t want to have to tear it down. I don’t think he wanted it to be tore down. But I think in the calmer circumstances, we actually voiced what our interest may have been, collectively, and at the end of the day, we reached some type of compromise.

“And to me, that’s in every negotiation. That’s in every agreement, I’m very happy we stand on this step to move forward, as opposed to moving separate.”

As they waited for the final signatures, NASCAR attorneys shook hands and chatted with Jordan, and NASCAR President Steve O’Donnell talked with the basketball icon after the settlement.

Jordan is the majority owner of 23XI Racing, while star driver Denny Hamlin owns 40 percent. While Jordan has been the national face of the lawsuit, Hamlin has been the face inside the racing industry as his competitor obligations require him to speak to the media prior to every race.

“Everything within the settlement is going to grow the sport,” Hamlin said. “It’s going to be better for everyone. There’s no doubt about it.”

Hamlin seemed confident in the case leading up to the trial as the teams claimed that NASCAR didn’t provide them with an economically viable business model through the charter agreement. The judge had already ruled the teams had a monopoly as NASCAR sanctions the races, owns more than half the tracks and sets a base price for its race cars because of the required use of single-source suppliers for parts and pieces. Exclusivity clauses in the track sanction agreements and the charter agreements with the teams, along with the inability to use the Next Gen car at other events, keep a competitor from forming, the teams alleged.

If the jury determined NASCAR had utilized anticompetitive acts to retain the monopoly, it could have awarded 23XI and FRM combined damages of more than $300 million — and the judge could have tripled that amount.

The judge also could have forced NASCAR to sell its tracks or alter the exclusivity provisions or even get rid of the charter system — a system that guarantees teams a spot in each race and a fixed base of revenue.

The agreement that 13 of the 15 Cup teams signed in September 2024 awards the teams $12-13 million annually, while 23XI and FRM contended that they need $20 million annually. The agreement also ends in 2031 with a potential seven-year extension through 2038 — without the guarantee of any increase in payouts to the teams.

23XI Racing will continue to compete in NASCAR as a result of Thursday’s decision.

In the charter negotiations, teams had lobbied for permanent charters, and that the “evergreen” language for all teams will be added is considered the biggest victory in the lawsuit.

There was no guarantee the teams would win the trial, and the teams faced the prospect of likely going out of business if they remained without charters, as a team without charters likely would make less than $5 million from NASCAR during the season. The teams didn’t sign the charter agreement because of a provision that they could not sue NASCAR, and filed the antitrust lawsuit instead.

“Level heads [won],” Jordan said. “When you get to the finish line, sometimes you have to think not just for yourself, but you got to think about the sport as a whole.

“And I think both parties got to that point, and we realized that we can have an opportunity to settle this, and we dove in, and we actually did it. Unfortunately, it took us that long, but we got here and that’s all that matters.”

NASCAR had contended all along that this was negotiation through litigation. And while the lawsuit is over, bitter feelings could continue.

Several texts and emails of NASCAR executives making disparaging comments about drivers, as well as long-time owner Richard Childress, won’t be forgotten.

The teams also aren’t unscathed as their financial information (just like NASCAR’s) is now public.

The 23XI Racing internal squabbles also were brought to light — Jordan’s own business executives complained about Hamlin and his excessive spending.

“It’s a marriage — if I didn’t have people having checks and balances on me, I’d do everything I could to win races,” Hamlin said. “You always need people within a company [to see] that the business is running properly.

“And that’s essentially what we were trying to protect with this lawsuit – that this team is here for the long run.” 

Bob Pockrass covers NASCAR and INDYCAR for FOX Sports. He has spent decades covering motorsports, including over 30 Daytona 500s, with stints at ESPN, Sporting News, NASCAR Scene magazine and The (Daytona Beach) News-Journal. Follow him on Twitter @bobpockrass.

CHARLOTTE, N.C. (AP) — Michael Jordan and NASCAR chairman Jim France stood side-by-side on the steps of a federal courthouse as if they were old friends following a stunning settlement Thursday of a bruising antitrust case in which the Basketball Hall of Famer was the lead plaintiff in a lawsuit accusing the top racing series in the United States of being a monopolistic bully.

The duo was flanked by three-time Daytona 500 Denny Hamlin and Curtis Polk, who co-own 23XI Racing with Jordan, Front Row Motorsports owner Bob Jenkins and over a dozen lawyers as they celebrated the end to an eight-day trial that ultimately led NASCAR to cave and grant all its teams the permanent charters they wanted.

“Like two competitors, obviously we tried to get as much done in each other’s favor,” Jordan said, towering over the 81-year-old France. “I’ve said this from Day 1: the only way this sport is going to grow is we have to find some synergy between the two entities. I think we’ve gotten to that point, unfortunately it took 16 months to get here, but I think level heads have gotten us to this point where we can actually work together and grow this sport. I am very proud about that and I think Jim feels the same.”

France concurred.

“I do feel the same and we can get back to focusing on what we really love, and that’s racing, and we spent a lot of time not really focused on that so much as we needed to be,” France said. “I feel like we made a very good decision here together and we have a big opportunity to continue growing the sport.”

A charter is the equivalent of the franchise model used in other sports and in NASCAR it guarantees 36 teams a spot in every top-level Cup Series race and a fixed portion of the revenue stream. The system was implemented in 2016 and teams have argued for over two years that the charters needed to be made permanent — they had been revokable by NASCAR — and the revenue sharing had to change.

NASCAR, founded and privately owned by the Florida-based France family, never considered making the charters permanent. Instead, after two-plus years of bitter negotiations, NASCAR in September 2024 presented a “take-it-or leave-it” final offer that gave teams until end of that day to sign the 112-page document.

23XI and Front Row refused and sued, while 13 other organizations signed but testimony in court revealed many did so “with a gun to our head” because the threat of losing the charters would have put them out of business.

Jordan testified early in the trial that as a new team owner to NASCAR — 23XI launched in 2021 — he felt he had the strength to challenge NASCAR. Eight days of testimony went badly for NASCAR, which when it began to present its case seemed focused more on mitigating damages than it did on proving it did not violate antitrust laws.

Although terms of the settlement were not released — NASCAR was in the process of scheduling a Thursday afternoon call with all teams to discuss the revenue-sharing model moving forward — both Jordan and NASCAR said that charters will now be permanent for all teams. 23XI and Front Row will receive their combined six charters back for 2026.

An economist has previously testified that NASCAR owes 23XI and Front Row $364.7 million in damages, and that NASCAR shorted 36 chartered teams $1.06 billion from 2021-24.

“Today’s a good day,” Jordan said from the front-row seat he’s occupied since the trial began Dec. 1 as he waited for the settlement announcement.

U.S. District Judge Kenneth Bell, who had presided over two days of failed settlement talks before the trial began, echoed the sentiment. Bell told the jury that sometimes parties at trial have to see how the evidence unfolds to come to the wisdom of a settlement.

“I wish we could’ve done this a few months ago,” Bell said in court. “I believe this is great for NASCAR. Great for the future of NASCAR. Great for the entity of NASCAR. Great for the teams and ultimately great for the fans.”

The settlement came after two days of France testimony and the Wednesday night public release of a letter from Bass Pro Shops founder Johnny Morris calling for NASCAR Commissioner Steve Phelps to be removed.

The discovery process revealed internal NASCAR communications in which Phelps called Hall of Fame team owner Richard Childress a “redneck” and other derogatory names; Bass Pro sponsors Childress’ teams, as well as some others, and Morris is an ardent NASCAR supporter.

Childress gave fiery testimony earlier this week over his reluctance to sign the charter agreement because it was so unfair to the teams, which have been bleeding money and begged NASCAR for concessions. Letters from Hall of Fame team owners Joe Gibbs, Rick Hendrick, Jack Roush and Roger Penske were introduced in which they pleaded with France for charters to become permanent; France testified he was not moved by the men he considers good friends.

Hendrick and Penske, who were both scheduled to testify Friday, expressed gratitude that a settlement had been reached. Penske called it “tremendous news” and cleared the way to continue growing the series.

“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,” Hendrick said. “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.”

The settlement came abruptly on the ninth day of the trial. Bell opened expecting to hear motions but both sides asked for a private conference in chambers. When they emerged, Bell ordered an hour-long break for the two sides to confer. That turned into two hours, all parties returned to the courtroom and Kessler announced an agreement had been reached.

“What all parties have always agreed on is a deep love for the sport and a desire to see it fulfill its full potential,” NASCAR and the plaintiffs said in a joint statement. “This is a landmark moment, one that ensures NASCAR’s foundation is stronger, its future is brighter and its possibilities are greater.”

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CHARLOTTE, N.C. — NASCAR and the two organizations suing it, Front Row Motorsports and the Michael Jordan-owned 23XI Racing, reached a settlement agreement, an attorney said in court Thursday, ending the antitrust case the race teams brought against the league and its chairman and CEO, Jim France.

“I’m pleased to say the parties have positively settled this matter in a way that will benefit the industry going forward,” Jeffrey Kessler, attorney for the teams, said.

After a 14-month legal battle and eight days of sparring in court that threatened to dramatically reshape the most popular form of motorsport in the United States, the sides reached a deal over the contentious charter negotiations that culminated in 2024, leaving 23XI and Front Row accusing NASCAR of monopolistic practices.

Full terms of the settlement were not yet known, but The Athletic confirmed the teams got back their three charters each, previously lost during the litigation. The teams will also get some form of “evergreen” charters, which was one of the plaintiffs’ chief desires in their lawsuit filed in October 2024. The latest deal to extend the charters — which operate like franchises in other sports and guarantee teams certain revenues — was most recently renegotiated in 2024. Thirteen of 15 teams signed the new agreement; the two holdouts were 23XI and Front Row, who then filed the lawsuit.

A call between NASCAR and the teams was expected Thursday afternoon.

“I’ve said this from Day 1: 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 said outside the courthouse. “Unfortunately, it took 16 months to get here, but I think, level heads got us to this point to where we can actually work together and grow this sport. I’m very proud about that. And I think (France) feels the same.”

France, speaking right after Jordan, agreed.

“We can get back to focusing on what we really love, and that’s racing,” France said. “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.”

Bob Jenkins, owner of Front Row, told The Athletic, “We’re ready to go racing.”

The presiding judge, Kenneth D. Bell, told the parties it was “the right thing to do” and congratulated both sides.

“This is going to be great for the entity NASCAR, the industry NASCAR, the teams, the drivers, and as you have so often said yourselves, ultimately the fans,” Bell said, adding that he was “very happy” with the settlement agreement.

Afterward, there was a big scene in the courtroom with handshakes and even hugs between all the participants on both sides. Even Denny Hamlin, 23XI’s co-owner, and France hugged.

The jury trial began last week, with a host of prominent NASCAR figures called to the witness stand, including 23XI’s Jordan and Hamlin and top NASCAR executives Steve O’Donnell, Steve Phelps and France.

Denny Hamlin and Michael Jordan, co-owners of 23XI Racing. (Chris Graythen / Getty Images)

In the lawsuit, 23XI and Front Row alleged NASCAR and France used “anticompetitive and exclusionary practices” to “enrich themselves at the expense of the premier stock car racing teams.”

The suit came a month after 13 charter-holding teams signed what was effectively a take-it-or-leave-it offer from NASCAR. Some of the teams felt they had to sign or risk NASCAR discontinuing the charter system.

Front Row and 23XI were the only teams that opted not to sign the extension. And since then, the teams and the league have often traded public barbs while also acquiring high-profile attorneys who are experts in antitrust cases, with Chris Yates representing NASCAR and Kessler representing 23XI/Front Row.

Holding one of 36 available charters is akin to owning a franchise in most stick-and-ball leagues, with the benefits including certain financial guarantees and entry into all 36 points races in NASCAR’s premier Cup Series. Charter values have skyrocketed in recent years, going from as low as $2 million to the most recent sale this summer, which went for $45 million. The money associated with owning a charter, and the expected continued growth in value, further complicated settlement negotiations.

The settlement is likely to be welcome across the industry. The lawsuit has cast a big shadow over the sport for the past 12 months and was a dominant storyline heading into NASCAR’s Cup Series championship race earlier this month in Phoenix, where Hamlin was one of the four finalists vying for NASCAR’s top prize.

The discovery process and trial also revealed a great deal of bad blood. Phelps was revealed in text messages to have called Hall of Fame owner Richard Childress a “stupid redneck” who should be “taken out back and flogged.” Hamlin gave a fiery testimony during the trial’s opening days, saying, “We want to be made whole for what you guys did to us,” regarding the charter agreements.

Meanwhile, France maintained in testimony that he was not willing to budge on allowing permanent charters.

“I don’t know how you can set anything in this changing world we’re in as permanent,” France said. “I’m just not comfortable making agreements that go on forever.”

The stakes of the trial were high, and Judge Kenneth D. Bell had warned that the consequences would be disastrous.

If the teams had prevailed, Bell indicated he could force NASCAR to sell its racetracks or the France family to cede control of the sport. If NASCAR had prevailed, two teams would be without charters and likely out of business — including one owned by an NBA legend and one of the planet’s most famous athletes, who would likely then be out of the sport.

The settlement comes a few weeks after high-ranking NASCAR executives and the ownership for both teams participated in a two-day settlement conference. The first day of those talks was considered encouraging, while the second day was less so. Following these discussions, NASCAR was determined to settle in advance of the championship weekend, though it was unsuccessful.

Now, after months of litigation, with attorney fees for each side mounting to eight figures, and with the sport facing a potentially cataclysmic outcome no matter who prevailed, the sides have reached the checkered flag.

Fans entering the 2025–26 NASCAR season are navigating a sponsorship landscape that runs on three different playbooks. O’Reilly Auto Parts Series and CRAFTSMAN continue enforcing old-school category protection through the Viceroy Rule, limiting which brands can appear on cars and pit walls. Meanwhile, the Cup Series uses a premier partner model that comfortably allows competing brands to coexist on Sundays. Fuel suppliers remain locked into exclusivity across all national series, explaining why some companies appear freely while others are nowhere to be found. Understanding these rules helps fans make sense of the sponsorship puzzles they notice every race weekend.

The Fan-Eye View of NASCAR’s Sponsorship Puzzle

For fans, sponsorship rules matter because they directly shape what becomes visible on cars, pit walls, graphics, and broadcasts. The contrast between O’Reilly Auto Parts Series and CRAFTSMAN’s category-protected world and the Cup Series’ open premier partner environment becomes obvious every time the camera slows for pit stops. Old-school boundaries in two series and flexible overlap in the third create a fragmented advertising picture that fans decode subconsciously while watching. This blend of exclusivity and openness forms a sponsorship universe where some brands thrive, and others cannot appear, leading fans to try to understand why certain logos dominate while others never surface.

The Viceroy Rule in O’Reilly Auto Parts Series and Trucks

The Viceroy Rule controls which companies can take over the most valuable real estate on O’Reilly Auto Parts Series and Truck Series vehicles. It blocks direct rivals to the entitlement of sponsor from securing primary positions even if those brands want to invest heavily. Fans watching qualifying or the grid notice certain telecom or tool competitors are missing, not because they lack interest, but because category protection stops them at the door. This legacy rule ensures that O’Reilly Auto Parts Series and CRAFTSMAN maintain top billing, shaping the broadcast’s visual identity by preventing direct challengers from securing hood takeovers or full-vehicle branding.

What Fans Will and Will not See on O’Reilly Auto Parts Series Cars in 2025–26

The O’Reilly Auto Parts Series Series, backed by Comcast’s O’Reilly Auto Parts Series brand since 2015, features consistent visibility on broadcasts and throughout race weekends. Even in 2025–26, category protection continues steering which brands appear on the hood. Rivals to O’Reilly Auto Parts Series’s core business cannot purchase primary sponsorship positions, creating a visual field dominated by non-competitive brands. Associate partners may show up in small decals, but the main panels remain free from direct telecom adversaries. This ensures O’Reilly Auto Parts Series preserves unmistakable prominence while viewers see controlled sponsor diversity designed to uphold the entitlement brand’s category rights across every camera angle.

CRAFTSMAN Truck Series Visuals Under Tight Category Control

The CRAFTSMAN Truck Series mirrors this structure within the tools category. CRAFTSMAN’s return as title sponsor produced heavy integrations: logos on pit boxes, visible equipment, uniforms and official signage. Direct tool competitors cannot take primary sponsorship roles because the Viceroy Rule protects CRAFTSMAN’s status. Fans watching pit stops notice that tool chests, wall signage and crew gear all align with the entitlement sponsor. Even if rival tool companies appear in NASCAR more broadly, the Truck Series protects CRAFTSMAN’s dominance, keeping primary positions unavailable to competitors and preserving a unified visual identity throughout the season.

Cup’s Premier Partner Model: Competing Brands Sharing the Stage

The Cup Series breaks from tradition with a premier partner model, featuring Busch, Coca-Cola, GEICO, O’Reilly Auto Parts Series and new additions like Freeway Insurance in 2026. Without strict category blocking, Cup broadcasts present a diverse sponsor environment where competing beverage companies, insurers or telecom brands might appear simultaneously. Fans often see one premier partner highlighted in race graphics while another company in the same broad space appears on a car moments later. The format spreads exposure across multiple partners, giving the Cup broadcast a more crowded advertising ecosystem compared with the comparatively restricted O’Reilly Auto Parts Series and Truck Series.

Fuel remains one of NASCAR’s most protected categories. Sunoco has held exclusive status since 2004, supplying the Cup, O’Reilly Auto Parts Series and Truck Series. No rival fuel brand can access pit road, which explains why fans never see competing pumps or fuel containers. The rule ensures consistent race-fuel quality across all teams and maintains an unmistakable Sunoco presence. Even if a team partners with an oil or lubricant company, the actual competition fuel remains solely Sunoco. This locked category shapes every broadcast’s visuals by preventing alternative fuel branding from entering the competitive space.

Today’s settlement in the NASCAR antitrust lawsuit has the racing world abuzz. Jim France released an official statement afterward. It appears that both sides have been able to come to an agreement, and that means substantial changes in the sport. 23XI Racing and Front Row earned their charters back and evergreen, permanent charters for all teams.

The teams were unable to negotiate for permanent charters in the 2025 Charter Agreement. Many owners, if not all, have expressed a desire to see charters become permanent and fully establish a franchise system like in other American sports leagues.

With the charters becoming permanent, Jim France has given in on one of his biggest sticking points. Months of litigation and eight days of a trial were all it took!

“The 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,” France said. “We worked closely with race teams 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.”

Jim France and Denny Hamlin reportedly hugged after the settlement was announced. Both sides were able to come together, shake hands, and celebrate this outcome. Now, what’s next?

Jim France gives in on permanent charters in settlement

It is so frustrating to see this outcome in many ways. The permanent charters disagreement was always simple. NASCAR and Jim France should have adopted permanent charters in the 2025 Charter Agreement to begin with. However, they let almost a year and a half of litigation and a trial happen before giving it up.

Permanent charters are going to be good for NASCAR. Having a franchise system that has stability and a future beyond the media rights agreement is good. The value of those teams is going to go up. It will also help make NASCAR look and feel like a modern professional sports league.

Jim France is a proud man, and he should be. There are times when pride can get in the way of common sense. Still, it is a good thing that we are here. A jury deciding this case and then a judge deciding the future of NASCAR would have been tumultuous. The best time to do permanent charters was 2024, the next best time was as soon as possible. I guess this was the as soon as possible.

CHARLOTTE, N.C. — NASCAR has reached a settlement of the bruising antitrust lawsuit filed against it by two of its race teams, including one co-owned by NBA great Michael Jordan.

The Thursday settlement was announced following a lengthy delay on the ninth day of the trial in federal court. Details were not immediately released.

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U.S. District Judge Kenneth Bell opened the day preparing the hear motions but called an hour-long sidebar. Jeffrey Kessler, attorney for 23XI Racing and Front Row Motorsports, emerged from a conference room at the end of the hour to inform a court clerk “we’re ready.” 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.

23XI and Front Row filed suit last year after refusing to sign agreements on the new charter offers NASCAR presented to teams in September 2024. Teams had until end of day to sign the 112-page document and 13 of 15 organizations reluctantly agreed. Jordan and Jenkins sued instead and raced the bulk of 2025 uncharted.