Additional Coverage:
- NASCAR reaches settlement in antitrust lawsuit with Michael Jordan’s racing team and Front Row Motorsports (cbssports.com)
NASCAR and 23XI Racing Settle Antitrust Lawsuit, Paving Way for Unified Future
NASCAR and Michael Jordan’s racing team, 23XI, have reached a settlement in their antitrust lawsuit, bringing an end to a legal dispute that challenged NASCAR’s alleged monopoly over premier U.S. stock car racing. The agreement was reached on the ninth day of a federal trial, with Front Row Motorsports Inc. also party to the settlement.
The financial terms of the agreement will not be publicly disclosed. However, a joint statement released by the parties emphasized a “shared commitment to maintaining a fair and equitable framework for long-term participation in America’s premier motorsport.”
This resolution aims to support teams, partners, and stakeholders while ensuring fans continue to enjoy high-quality racing. Both sides expressed a desire to move forward with a unified focus on advancing stock car racing.
The lawsuit, filed last year by 23XI and Front Row Motorsports, accused NASCAR of anticompetitive and exclusionary practices that allegedly put racing teams at a financial disadvantage. This legal action followed stalled negotiations between NASCAR and the teams regarding a new charter agreement, which guarantees financial benefits and racing spots within the Cup Series.
Michael Jordan, co-owner of 23XI, stated that the lawsuit was “about progress” and ensuring the sport evolves to support all participants: teams, drivers, partners, employees, and fans. He expressed optimism that the settlement provides a “foundation to build equity and invest in the future,” giving teams a stronger voice in upcoming decisions and fostering growth for generations to come.
The dispute stemmed from NASCAR’s 2016 implementation of charter agreements, which function similarly to franchising. These agreements guarantee 36 teams entry into every seasonal race and a larger share of purse money compared to non-charter teams.
Following the expiration of the previous agreement at the end of the 2024 season, NASCAR presented a new 2025-2031 charter agreement, reportedly as a final offer after months of negotiations. While most teams signed, 23XI and Front Row Motorsports opted not to, leading to the lawsuit.
Judge Bell, overseeing the case, lauded the settlement as “the right thing to do,” remarking that it will benefit “the entity NASCAR, the industry NASCAR, the teams, the drivers, and as you have so often said yourselves, ultimately the fans.”