The NASCAR antitrust settlement reached on December 11, 2025, ended a legal battle that pulled the sport into federal court and forced a closer look at its business model. The lawsuit was filed by 23XI Racing and Front Row Motorsports. The dispute centered on NASCAR’s charter system and the level of control the sanctioning body holds over Cup Series teams.
A key ruling confirmed NASCAR has “monopoly/monopsony power” in the market for premier stock car racing services. That decision narrowed the case and helped push both sides toward a settlement that changes charter ownership, revenue sharing, and team rights across the Cup Series.
Court ruling that reshaped the case
The lawsuit followed failed charter negotiations in September 2024. NASCAR presented teams with a 112-page charter agreement and gave them one day to sign. The deal guaranteed race entry and revenue but did not offer permanent charters. While most teams signed, 23XI Racing and Front Row Motorsports refused and chose to sue. Both teams competed for much of the 2025 season without charters.
On November 4, U.S. District Judge Kenneth Bell issued a summary judgment under Section 2 of the Sherman Act. He ruled that NASCAR does possess “monopoly/monopsony power in the relevant market” for premier stock car racing services. This ruling removed the need to argue whether NASCAR controlled the market and shifted the case to whether that control was used in an illegal way.
Judge Bell also rejected NASCAR’s argument that teams could easily move to other racing series. In his written “In opposing Plaintiffs’ relevant market, NASCAR now contends that the same motorsports that could not supply racing teams to the Cup Series are suddenly readily available substitutes for the Cup Series teams, like Plaintiffs, to sell their services. Not only is it illogical, but there is no record evidence that racing teams in various motorsports can only move from NASCAR to another motorsport but not vice-versa, Bell said.”
The trial began on December 1. After nine days of testimony, settlement talks accelerated. Judge Bell later spoke directly to the jury, saying, “I wish we could’ve done this a few months ago. I believe this is great for NASCAR. Great for the future of NASCAR. Great for the teams and ultimately great for the fans.”
Evidence and testimony during the trial
During the trial, teams presented internal NASCAR communications and testimony related to charter talks. Team owners described the final offer as “take-it-or-leave-it” and said it did not meet key demands, especially the push for permanent charters.
Michael Jordan, co-owner of 23XI Racing, said the lawsuit focused on the long-term health of the sport. “The lawsuit was about making sure NASCAR evolves in a way that supports everyone: teams, drivers, partners, employees, and fans, Jordan said.”
Denny Hamlin, Jordan’s partner at 23XI, explained why the team accepted the risks of going to court. “Racing is all I’ve ever known, and this sport shaped who I am. Hamlin said, That’s why we were willing to shoulder the challenges that came with taking this stand.”
What teams gain from the NASCAR antitrust settlement
The settlement applies to all 36 Cup Series teams. The most important change is the creation of permanent, or “evergreen,” charters. These charters cannot be taken away as long as teams meet standard conditions, giving owners long-term security.
Teams will also receive new revenue. For the first time, teams will get a share of NASCAR’s international media rights income. They will also receive one-third of revenue from new business deals that use the team’s intellectual property, including merchandise.
Governance rules also change. A reinstated five-strike rule allows teams to block rule changes that would cost at least $500,000 per car. Financial terms were not disclosed, but the settlement includes compensation for 23XI Racing and Front Row Motorsports after racing without charters in 2025.
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