NASCAR settles antitrust case featuring Michael Jordan

The NASCAR antitrust trial has ended without an official winner. And without an official loser either.

The refusal to settle over the past year led to a showdown in federal court between NASCAR and the plaintiffs: 23XI Racing, co-owned by Jordan and driver Denny Hamlin, and Front Row Motorsports. But on Thursday, Dec. 11, with the high-stakes trial moving closer to a verdict, the settlement brought the case to an abrupt halt at U.S. District Court of the Western District of North Carolina in Charlotte.

The trial was in its ninth day.

Meegan Hollywood, an attorney with Shinder Cantor Lerner law firm who specializes in antitrust cases, told USA TODAY Sports on Wednesday, Dec. 10 that a settlement would not be a surprise. The alternative was to leave the outcome in the hands of the jury.

‘It’s risky on both sides,’ Hollywood said.

Barak Orbach, a professor at the University of Arizona with an expertise with antitrust law, told USA TODAY Sports “one possibility to consider is that this entire trial (was) part of negotiation strategy.’’

Details from the settlement

One concession NASCAR is making as part of the settlement is “evergreen’’ charters, according to a joint statement from NASCAR, 23XI Racing and Front Row Motorsports that Jeff Gluck of The Athletic posted on X.  Before the antitrust case, the charters – which guarantee teams a spot in the Cup Series races and a portion of NASCAR’s income – were subject to renegotiation.

‘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 joint statement reads.

The financial terms of the settlement are confidential and will not be released, according to a joint statement.

What Michael Jordan said

On the steps outside the courthouse, Jordan stood next to NASCAR CEO Jim France and addressed the media.

“We’re like two competitors obviously,’’ he said. “…The only way this sport’s going to grow is we have to find some synergy between the two entities, and I think we’ve gotten to that point.’’

Said France, “I feel like we made a very good decision here.’’

A reporter asked Jordan what was the impetus that led to the settlement today and not earlier?

“Level heads,’’ Jordan said, drawing laughter from reporters. “In all honestly, when you get to the finish line, sometimes you have to think not for yourself but think about the sport as a whole. And I think both parties got to that point and we realized we can have an opportunity to settle this and we dove and we actually did it.’’

Jordan also released an official statement after the settlement was agreed to.

‘From the beginning, this lawsuit was about progress,’ Jordan’s statement began. ‘It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans. With a foundation to build equity and invest in the future and a stronger voice in the decisions ahead, we now have the chance to grow together and make the sport even better for generations to come. I’m excited to watch our teams get back on the track and compete hard in 2026.’

What NASCAR CEO Jim France said

Jim France, NASCAR CEO and chairman, had testified for two days on Tuesday Dec. 9 and Wednesday, Dec. 10 after being called as a witness by the plaintiffs before the parties reached a settlement.

‘This 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 in a statment. ‘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 rcing for generations to come. We are excitd to return the collective focus of our sport, teams and racetracks toward and incredible 78th seaosn that begins with the Daytona 500 on Sunday, Feb. 15, 2026.’

France, 81, is the son of NASCAR founder Bill France Sr. and brother of former CEO Bill France Jr. The largest motorsports series in the United States, NASCAR remains privately owned by the France family.

Denny Hamlin remarks

On his X account (formerly Twitter), Hamlin wrote, “Standing up isn’t easy, but progress never comes from staying silent. The reward is in knowing you changed something.’

The X account of the Loose Is Fast Podcast responded with photo of Hamlin after winning a race and the words, “I beat your favorite lawyer,’ an inside joke among NASCAR fans.

Hamlin, a three-time champion of the Daytona 500, has won 60 career races in the NASCAR Cup Series (tied for 10th all time) and has become notorious for taunting fans by saying, “I beat your favorite driver.’

What was the NASCAR antitrust lawsuit about?

The lawsuit accuses NASCAR of restraining fair competition and violating the Sherman Antitrust Act, preventing teams from competing ‘without accepting the anticompetitive terms’ it dictates. Filed in 2024, the lawsuit also asserts the ‘France family and NASCAR are monopolistic bullies.’

Jordan has not entered this battle alone. Denny Hamlin, a driver for Joe Gibbs Racing, and longtime Jordan business adviser Curtis Polk are co-owners of 23XI Racing, which just completed its fifth season on NASCAR’s Cup Series. Front Row Motorsports, another NASCAR team, is a plaintiff.

The case centers on multimillion-dollar charter agreements, which guarantee teams spots in every race of the Cup Series – the major league of NASCAR – and entitles them to a share of NASCAR’s revenue from sponsorship and media deals.

In 2024, NASCAR offered teams a seven-year charter agreement that would increase media revenue and also increase the annual cost of charters to $8.5 million from $5 million.

While there were reported rumblings among NASCAR racing teams that had existing charters, only Jordan’s 23XI Racing and Front Row Motorsports refused to sign the new contracts.

Take it or leave it is how the antitrust lawsuit characterized NASCAR’s deal.

What is a NASCAR charter?

NASCAR instituted the charter system in 2016 after an agreement with the Race Team Alliance, a collection of all the individual race teams in the Cup Series. Charters were designed to provide teams with an increased business certainty and long-term stability.

According to NASCAR, the agreement led to 36 charter teams with these key points:

• A charter guarantees entry (and therefore, a portion of the purse) into the field of every NASCAR Cup Series points race.
• Teams may sell their charters on the open market.
• Charter owners may transfer their charter to another team, for one full season, once over the first five years of the agreement.
• Charter teams are held to a minimum performance standard. If a charter team finishes in the bottom three of the owner standings among all 36 charter teams for three consecutive years, NASCAR has a right to remove the charter.
• Organizations now have a hard cap of four cars; there no longer is the ability to run a fifth car for rookie drivers.
• NASCAR Cup Series fields consist of 40 cars — a change made, from 43 cars previously, when the charter system was initially announced. That means 36 charter teams are guaranteed to make every points race, and four non-charter (or “open”) teams will complete the rest of the field.

NASCAR minimizes potential damage

By reaching a settlement, NASCAR eliminated the possibility of more than $1 billion in monetary damages.

Edward Snyder, a professor of economics who worked in the antitrust division of the Department of Justice, testified that NASCAR owed 23XI Racing and Front Row Motorsports a combined $364.7 million in damages, according to the Associated Press. A verdict against NASCAR would have led those damages to be trebled to more than $1 billion, excluding legal fees.

Orbach, the professor from Arizona, said injunctive relief imposed by the judge would have been an even bigger problem with NASCAR.

“Once you have the injunction NASCAR cannot continue operating as it has been operating,’’ Orbach said. “So even without (monetary) damages, the injunctions themselves (would) likely to require NASCAR to transform its operations.’’

Although both sides disclosed there will be changes with charter agreements, NASCAR no longer is subject to the judge’s orders.

Denny Hamlin, partners celebrate after settlement

When is the next NASCAR race?

NASCAR is currently in its offseason after Kyle Larson won the 2025 Cup Series championship in early November, outdueling Hamlin in an overtime finish.

Drivers and teams are enjoying a winter break before returning to action in February when they will hit the track Feb. 1 for the exhibition Cook Out Clash at Bowman Gray Stadium in Winston-Salem, North Carolina.

From there it’s on to Daytona Beach, Florida, as prepartions begin for the 68th annual Daytona 500. Daytona Speedweeks begin the week of Feb. 9, beginning with Daytona 500 pole qualifying on Wednesday, Feb. 11. The Duel at Daytona will take place Thursday, Dec. 12, followed by the 2026 Daytona 500 on Sunday, Feb. 15.

∎ Click here to view the the full 2026 NASCAR Cup Series schedule.