In a major turn for stock car racing, NASCAR has ended its long legal fight with 23XI Racing and Front Row Motorsports. After more than a year of tense negotiations, sharp testimony, and eight days in court, the sides reached a settlement that stopped a trial that could have reshaped the sport.
“I’m pleased to say the parties have positively settled this matter in a way that will benefit the industry going forward, Attorney Jeffrey Kessler told the court.”
The settlement arrived after months of pressure over the 2025 charter agreement, which the two teams refused to sign. While full terms remain private, the decision ends a legal battle that exposed deep disagreements inside NASCAR.
The moment the case flipped toward settlement
The case shifted on December 11 when U.S. District Judge Kenneth D. Bell called a short break in the proceedings. After the recess, Kessler announced the settlement to the court. Judge Bell responded that the agreement was “the right thing to do” and said, “This is going to be great for the entity NASCAR, the industry NASCAR, the teams, the drivers, and… ultimately the fans,” according to The Athletic.
The Athletic also reported that the teams regained the charters they had lost during the dispute, removing the most immediate threat to their future participation in the Cup Series. The decision brought visible relief inside the courtroom, with handshakes and even a brief hug between Denny Hamlin and Jim France.
Testimony that revealed major tensions
Throughout the trial, several witnesses described how the charter talks fell apart. NASCAR Chairman Jim France told the court he was not willing to commit to permanent charters, saying, “I don’t know how you can set anything in this changing world we’re in as permanent. I’m just not comfortable making agreements that go on forever,” according to reporting by Bob Pockrass of FOX Sports.
Michael Jordan also testified about why 23XI refused to sign the charter agreement. Jordan said the case was “for every person in NASCAR, for every team in NASCAR, that isn’t being treated fairly,” as detailed in the FOX Sports coverage. His presence drew heavy attention, highlighting how serious the dispute had become.
The trial also showed internal strain within NASCAR’s leadership. Text messages revealed that NASCAR President Steve Phelps had referred to veteran owner Richard Childress as a “stupid redneck” who should be “taken out back and flogged,” a detail covered by both FOX Sports and The Athletic. Those messages, shown in court filings, raised questions about the relationship between the league and its teams.
What the settlement means for the future
The lawsuit centered on claims that NASCAR used “anticompetitive and exclusionary practices” to benefit itself “at the expense of the premier stock car racing teams.” The teams argued the charter deal left them with an economic model that could not sustain long-term competition, even as charter values climbed as high as $45 million.
NASCAR denied those allegations, but the trial made clear that the system had major points of disagreement. Testimony showed years of rising team costs, especially with the Next Gen car, and a revenue structure the plaintiffs said did not keep up. By settling, NASCAR avoided potential remedies that Judge Bell had warned could be “disastrous,” including a forced sale of tracks or changes in control of the sport.
The settlement gives NASCAR stability heading into the next season. It also opens the door for continued conversations between the league and its teams about long-term business health. The lawsuit is finished, but the issues it raised will shape NASCAR for years to come.
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