Nascar, 23XI Racing and FRM settlement ends year-long legal battle

• 23XI and FRM sought US$365m in damages
• Both teams will have their charters returned from next season
• Nascar will issue updated charter agreement to all teams soon

Nascar has reached a settlement with 23XI Racing and Front Row Motorsports (FRM), bringing its long-running legal battle with two of its teams to a close.

While the details of the settlement have not been confirmed, a key outcome from this compromise will be the creation of permanent charters. It is known from the trial that 23XI and FRM sought US$365 million in damages from Nascar if they won the case, but financial details were not disclosed. 23XI and FRM will also have their charters returned to them for the 2026 season.

In other words, Nascar is now has a much more similar structure to the stick-and-ball leagues in North America, although its teams do not have equity in the series itself.

‘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,’ a joint statement released by all parties 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.

‘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.’

23XI and FRM filed a lawsuit last year after being offered a take-it-or-leave-it contract by Nascar for the current cycle of charter agreements. At the time, 13 of the 15 teams decided to sign the agreement, but 23XI and FRM held firm in their belief that the series’ approach represented monopolistic practices.

23XI and FRM raced for most of the 2025 season unchartered in pursuit of their goal, which now looks to have paid off handsomely.

While the agreement was not immediately publicised, the Associated Press has since reported that teams will now share international revenue for the first time. Teams will also get a third of revenue generated from Nascar’s intellectual property (IP) and terms will be renegotiated in line with each new media rights cycle.

The three-strike rule also returns to the agreement having been removed in 2025 – a system that allowed teams to dispute certain Nascar decisions – but this will now be a five-strike rule. This rule voided the exclusivity agreements in the charter agreement if three strikes (now five) were called against the sanctioning body.