NASCAR settles federal antitrust case, gives all teams permanent charters

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 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."