NASCAR settles federal antitrust case filed by 2 teams

CHARLOTTE, N.C. — 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 Thursday’s stunning settlement of a bruising antitrust case in which the Basketball Hall of Famer was the lead plaintiff in a lawsuit accusing America’s top racing series of being a monopolistic tyrant.

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

“As two competitors, we obviously tried to do as much as possible in favor of the other,” said France’s dominating Jordan, 81. “I’ve said it from day one: the only way for this sport to grow is to find synergy between the two entities. I think we’ve gotten to this point, unfortunately it took 16 months to get there, but I think the level of spirit has brought us to this point where we can actually work together and grow this sport. I’m very proud about that and I think Jim feels the same way.

France agreed.

“I feel the same way and we can focus again on what we really love, which is racing, and we spent a lot of time not really focusing on that as much as we should have been,” France said. “I feel like we made a really good decision here together and we have a great opportunity to continue to grow this 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-tier Cup Series race and a fixed portion of the revenue. The system was implemented in 2016, and teams argued for more than two years that the charters should become permanent — they had been revocable by NASCAR — and that revenue sharing should change.

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

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

Jordan testified at the start of the trial that as a new NASCAR team owner – 23XI launching in 2021 – he felt he had the strength to challenge NASCAR. Eight days of testimony went poorly for NASCAR, which when it began presenting its case seemed more focused on mitigating damages than proving it hadn’t violated antitrust laws.

Although terms of the deal were not disclosed — NASCAR was planning a Thursday afternoon call with all teams to discuss the revenue-sharing model going forward — Jordan and NASCAR said the charters would now be permanent for all teams. 23XI and Front Row will receive their combined six charters for 2026.

An economist previously testified that NASCAR owes $364.7 million in damages to 23XI and Front Row, and that NASCAR shorted 36 licensed teams for $1.06 billion from 2021 to 2024.

“Today is a good day,” Jordan said from the front-row seat he has occupied since the trial began Dec. 1, awaiting the settlement announcement.

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

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

The settlement came after two days of testimony in France and the public release Wednesday evening of a letter from Bass Pro Shops founder Johnny Morris calling for the removal of NASCAR commissioner Steve Phelps.

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 a few others, and Morris is an ardent supporter of NASCAR.

Childress gave fiery testimony earlier this week about his reluctance to sign the charter agreement because it was too unfair to the teams, who bled money and begged NASCAR to make concessions. Letters from Hall of Fame team owners Joe Gibbs, Rick Hendrick, Jack Roush and Roger Penske were presented in which they pleaded with France to make the charters permanent; France said he was unmoved by men he considers good friends.

Hendrick expressed gratitude that a settlement was reached.

“Millions of loyal NASCAR fans and thousands of hardworking people rely on our industry, and today’s resolution allows us all to focus on what really matters: the future of our sport,” he said. “This moment represents an important opportunity to strengthen our relationships and recommit to building a collaborative and prosperous future for all stakeholders. I am incredibly optimistic about the future.

The settlement came abruptly on the ninth day of the trial. Bell opened his proceedings expecting to hear motions, but both sides requested a private conference in the chamber. When they emerged, Bell ordered a one-hour recess so both sides could confer. It turned into two hours, all parties returned to the courtroom and Kessler announced that an agreement had been reached.

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