NASCAR resolves antitrust lawsuit brought by Michael Jordan’s team

Settlement Reached in NASCAR Antitrust Lawsuit

CHARLOTTE, N.C. – A federal antitrust lawsuit against NASCAR, which alleged monopolistic practices, was settled on Thursday. This came after the racing organization agreed to permanently apply a crucial charter to each team, central to its revenue structure.

The lawsuit originated from Michael Jordan’s 23XI Racing and Front Row Motorsports and had loomed over NASCAR for over a year. Jordan expressed in court that he believed he was one of the few equipped to challenge NASCAR and ultimately chose to move on.

Jordan, along with 23XI co-owner Denny Hamlin and Front Row owner Bob Jenkins, gathered outside the courthouse with NASCAR Chairman Jim France to announce the pivotal decision. The charter, an essential aspect of NASCAR’s business model, will now be applicable to all teams within the Cup Series. As a result, 23XI and Front Row Motorsports, who had spent almost an entire season competing under uncertain circumstances, would regain their charter.

“Today is a good day,” Jordan remarked.

While the exact financial details of the settlement remain undisclosed, it was revealed that an economist had previously testified that 23XI and Front Row faced over $300 million in potential damages.

The resolution was achieved on the ninth day of the trial presided over by U.S. District Judge Kenneth Bell, who paused the hearing for an hour to facilitate discussions. Afterward, attorney Jeffrey Kessler for 23XI Racing and Front Row indicated readiness and guided Jordan, Hamlin, and Jenkins into a separate room for additional talks.

The lawsuit was filed last year when 23XI and Front Row accused NASCAR of not signing an agreement related to a new charter offer from September 2024. The agreement required a lengthy document to be signed by teams, ensuring access to premier Cup Series races and associated revenue. Surprisingly, by the end of the day, only 13 of the 15 teams had consented to this arrangement. In contrast, Jordan and Jenkins opted to file a lawsuit, navigating a season filled with uncertainty regarding their race participation.

Both teams had warned that they might be forced to shut down if the lawsuit did not go in their favor.

“All parties have shared a profound love for the sport and a mutual interest in maximizing its potential,” stated NASCAR along with the plaintiffs in a joint statement. “This marks a historic moment that solidifies NASCAR’s foundation while brightening its future and maximizing its possibilities.”

Judge Bell reflected on the necessity for parties in a trial to evaluate evidence to reach a sensible settlement, expressing, “I wish I had done this months ago. I think this is great for NASCAR, its future, for the organization itself, the teams, and, ultimately, the fans.”

Teams had previously perceived revenue-sharing arrangements as unbalanced. Extensive negotiations over two years led to NASCAR’s final offer, described by the teams as a “take it or leave it” proposition. They also believed this new agreement fell short of addressing four critical demands, particularly the need for the Charter to be permanent rather than subject to renewal.

The settlement came after a week of testimony, revealing that the Florida-based French family, NASCAR’s founders and owners, were resistant to making the charter permanent.