Charlotte, North Carolina, December 14, 2025
NASCAR has reached a settlement in a federal antitrust lawsuit filed by its race teams, 23XI Racing and Front Row Motorsports. Announced on December 11, the agreement ensures the permanence of all 36 charters in NASCAR’s charter system, addressing concerns over monopolistic practices and providing financial stability for the teams. The lawsuit claimed NASCAR underpaid chartered teams significantly, highlighting the impact on revenue distribution in the sport. This settlement is anticipated to foster unity and collaboration in NASCAR moving forward.
Charlotte, North Carolina
NASCAR has settled a significant federal antitrust lawsuit filed by two of its race teams, including 23XI Racing, co-owned by NBA legend Michael Jordan, and Front Row Motorsports. The settlement, announced on December 11, 2025, resolves allegations that NASCAR engaged in monopolistic practices concerning its charter system, which guarantees teams entry into races and a share of revenue.
As part of the settlement, NASCAR has agreed to make all 36 charters permanent, addressing a longstanding demand from the teams. This change is expected to provide financial stability and foster collaboration across the sport. The terms of the settlement, including any financial compensation, have not been publicly disclosed.
The lawsuit, initiated in 2024, accused NASCAR of monopolistic behavior, particularly regarding the revocable nature of team charters. An economist testified that NASCAR underpaid chartered teams by $1.06 billion from 2021 to 2024 and owed 23XI Racing and Front Row Motorsports $364.7 million in damages. The trial, which began on December 1, 2025, concluded with the settlement after eight days of testimony.
Both 23XI Racing and Front Row Motorsports had refused to sign NASCAR’s new charter agreements presented in September 2024, leading to the lawsuit. The settlement ensures that these teams will receive their charters for the 2026 season, allowing them to compete with the same rights and privileges as other chartered teams.
The resolution of this case is seen as a transformative moment that will strengthen NASCAR’s future and restore unity within the sport. Permanent charters are anticipated to bring financial stability and encourage collaboration across the racing community.
Background
NASCAR, founded and privately owned by the Florida-based France family, introduced the charter system in 2016 to provide teams with guaranteed spots in races and a share of the revenue. However, the charters were initially revocable, leading to disputes over their permanence and the fairness of revenue distribution. The recent legal action and subsequent settlement mark a significant shift in NASCAR’s approach to team participation and revenue sharing.
For more details on the settlement and its implications for NASCAR, you can watch the following video:
FAQs
- What is the recent settlement between NASCAR and its teams about?
- NASCAR has settled a federal antitrust lawsuit filed by two of its race teams, including 23XI Racing, co-owned by Michael Jordan, and Front Row Motorsports. The settlement addresses allegations of monopolistic practices concerning NASCAR’s charter system.
- What changes have been agreed upon in the settlement?
- NASCAR has agreed to make all 36 charters permanent, providing financial stability and fostering collaboration across the sport. The specific terms, including any financial compensation, have not been publicly disclosed.
- What were the allegations in the lawsuit?
- The lawsuit accused NASCAR of monopolistic behavior, particularly regarding the revocable nature of team charters. An economist testified that NASCAR underpaid chartered teams by $1.06 billion from 2021 to 2024 and owed 23XI Racing and Front Row Motorsports $364.7 million in damages.
- How does this settlement affect 23XI Racing and Front Row Motorsports?
- The settlement ensures that both 23XI Racing and Front Row Motorsports will receive their charters for the 2026 season, allowing them to compete with the same rights and privileges as other chartered teams.
- What is the significance of this settlement for NASCAR?
- The settlement is seen as a transformative moment that will strengthen NASCAR’s future and restore unity within the sport. Permanent charters are anticipated to bring financial stability and encourage collaboration across the racing community.
| Key Feature | Description |
|---|---|
| Settlement Announcement | NASCAR settled a federal antitrust lawsuit involving 23XI Racing and Front Row Motorsports on December 11, 2025. |
| Charter Permanency | NASCAR agreed to make all 36 charters permanent, providing financial stability to teams. |
| Allegations | The lawsuit claimed NASCAR monopolized practices with the charter system, underpaying teams by $1.06 billion. |
| Impact on Teams | The settlement allows 23XI Racing and Front Row Motorsports to compete in the 2026 season with full rights. |
| Significance for NASCAR | This is a pivotal moment poised to restore unity and collaboration in the racing community. |
Deeper Dive: News & Info About This Topic
HERE Resources
Body Found in Vehicle Sparks Investigation in Charlotte
NASCAR Settles Antitrust Lawsuit, Opening New Opportunities for Teams
Operation Safe Season Launched to Combat Uptown Crime
NASCAR Chairman Jim France Upholds Stance on Team Charters
NASCAR Chairman Jim France Maintains Stance on Charters
Jim France Upholds NASCAR Charter Decisions Amid Court Dispute
NASCAR Chairman Stands Firm on Charter Denials Amid Trial
NASCAR Chairman Jim France Confirms No Permanent Charters
NASCAR’s Charter Controversy: Jim France Stands Firm
NASCAR Antitrust Trial: Implications for Charlotte’s Racing Community
Author: HERE Charlotte
The CHARLOTTE STAFF WRITER represents the experienced team at HERECharlotte.com, your go-to source for actionable local news and information in Charlotte, Mecklenburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Lovin' Life Music Festival, Charlotte Pride festival, and major sporting tournaments at Bank of America Stadium. Our coverage extends to key organizations like the Charlotte Regional Business Alliance and Foundation for the Carolinas, plus leading businesses in finance and entertainment that power the local economy such as Bank of America and NASCAR. As part of the broader HERE network, including HEREAsheville.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
