NASCAR settlement makes Cup charters permanent; 23XI, Front Row regain charters
NASCAR reached a settlement with 23XI Racing and Front Row Motorsports during the antitrust trial, agreeing to make Cup Series team charters permanent and to return charters to the two teams after they raced without them for much of 2025; terms were not disclosed. The deal followed testimony from Michael Jordan and others criticizing NASCAR’s contested Sept. 2024 charter extensions — which Jordan called economically unviable, containing a no‑sue clause and presented as an ultimatum — and was hailed by the judge and plaintiffs’ attorney as beneficial to the sport.
📌 Key Facts
- NASCAR reached a settlement with 23XI Racing and Front Row Motorsports on the ninth day of the antitrust trial before Judge Kenneth Bell (Dec. 11, 2025); terms were not disclosed, Judge Bell called the deal “great for NASCAR... teams... and fans,” and plaintiffs’ attorney Jeffrey Kessler said it “will benefit the industry going forward.”
- As part of the settlement NASCAR agreed to make Cup Series team charters permanent and returned charters to 23XI and Front Row after both teams raced unchartered for much of the 2025 season.
- Charters (created in 2016) guarantee race entry and weekly payouts; 23XI and Front Row were among the teams that refused NASCAR’s Sept. 2024 112‑page charter‑extension offer, sued on antitrust grounds, and an economist testified damages in the case exceeded $300 million.
- Michael Jordan testified Dec. 5 that he owns 60% of 23XI, has invested $35–$40 million in the team, and felt compelled to challenge NASCAR—saying “someone had to step forward” and the sport “needed to be looked at from a different view.”
- Jordan and court testimony outlined three reasons 23XI refused the Sept. 2024 extension: it was not economically viable, it contained a no‑sue clause viewed as an antitrust problem, and it was presented as an ultimatum.
- Jordan disclosed 23XI bought a third charter in late 2024 for $28 million despite the uncertainty, a move he said was prompted by co‑owner Denny Hamlin to improve the team’s chances to win.
- Heather Gibbs (Joe Gibbs’ daughter‑in‑law) testified teams were given only six hours to sign the 112‑page September 2024 extension and described the situation as “like a gun to your head,” while Front Row owner Bob Jenkins testified he has not turned a profit since the early 2000s and estimates losses of about $100 million; Jordan also criticized NASCAR’s revenue split compared with the NBA’s roughly 50% player share.
📊 Relevant Data
In 2024, NASCAR generated $1.7 billion in total revenue and paid $333 million to teams, representing approximately 20% of its revenue shared with teams.
NASCAR Financials Revealed: Inside Profits, Losses, Charter Payouts — FOX Sports
46% of NASCAR fans who have followed the sport for three years or less identify as not White as of 2024.
NASCAR’s Drive For Diversity program marks a milestone with some major reasons for optimism but plenty of work still to do — Sports Business Journal
Black viewership of NASCAR races reached its highest levels in 2023 since the current TV deal began in 2015.
NASCAR’s Drive For Diversity program marks a milestone with some major reasons for optimism but plenty of work still to do — Sports Business Journal
NASCAR has historically been a traditionally male, White, and Southern sport, with Bubba Wallace's 2021 Cup Series win ending a 58-year drought for Black drivers in the series.
NASCAR’s Drive For Diversity program marks a milestone with some major reasons for optimism but plenty of work still to do — Sports Business Journal
📰 Sources (5)
- As part of the settlement, NASCAR agreed to make Cup Series team charters permanent.
- 23XI Racing and Front Row Motorsports will have their charters returned after racing unchartered for much of the 2025 season.
- Michael Jordan reacted to the deal, saying, “Today’s a good day.”
- NASCAR reached a settlement with 23XI Racing and Front Row Motorsports on the ninth day of trial before Judge Kenneth Bell; terms were not disclosed.
- Judge Bell told the jury the settlement is "great for NASCAR... teams... and fans," noting trials can spur "the wisdom of a settlement."
- Plaintiffs’ attorney Jeffrey Kessler said the deal "will benefit the industry going forward."
- Context reiterated in court: teams refused to sign NASCAR’s September 2024 112‑page charter offer, raced unchartered for much of 2025, and an economist testified damages exceeded $300 million.
- Michael Jordan told jurors he "wasn't afraid" to challenge NASCAR and felt the sport "needed to be looked at from a different view."
- Michael Jordan testified he owns 60% of 23XI Racing and has invested $35–$40 million in the team.
- Jordan reiterated three reasons for refusing the 2024 charter extension: it was not economically viable, contained a 'no-sue' clause he viewed as an antitrust violation, and was presented as an ultimatum.
- Heather Gibbs (Joe Gibbs’ daughter-in-law) is identified as the witness who described the six-hour sign-or-lose-charter window as 'like a gun to your head.'
- Jordan confirmed 23XI bought a third charter in late 2024 for $28 million despite the uncertainty.
- Front Row owner Bob Jenkins testified he has not turned a profit since the early 2000s and estimates losing about $100 million.
- Michael Jordan testified for about an hour on Dec. 5, telling jurors he felt compelled to challenge NASCAR’s model: “Someone had to step forward and challenge the entity.”
- Jordan said 23XI refused to sign the Sept. 2024 charter extensions because they were not economically viable, included a no‑sue clause he viewed as an antitrust problem, and came as an ultimatum.
- Jordan disclosed 23XI bought a third charter in late 2024 for $28 million despite uncertainty, persuaded by Denny Hamlin to improve the team’s chances to win.
- He contrasted NASCAR’s revenue split unfavorably to the NBA’s roughly 50% player share, arguing teams and drivers are being shortchanged.
- Heather Gibbs testified teams had only six hours to sign a 112‑page charter extension in Sept. 2024 and called it a “gun to your head” situation.
- Context restated: Charters (created in 2016) guarantee race entry and weekly payouts; 23XI and Front Row were the only teams of 15 to refuse the extension and instead sued on antitrust grounds.