NASCAR, Michael Jordan’s Racing Team Settle Antitrust Suit (2)

NASCAR on Thursday settled an antitrust lawsuit brought by Michael Jordan’s racing team alleging that the organization holds a monopoly over premier stock car racing in the US and that its charter agreements are unlawful.

As a condition of the proposed deal, which came on the ninth day of a trial, NASCAR will amend the terms for existing charter holders, which will include a form of “evergreen” charters.

Jordan’s team, 23XI Racing, and another plaintiff team, Front Row Motorsports Inc., will have chartered-team status for the 2026 season under the deal, according to a statement from the teams’ lead attorney, Jeffrey Kessler of Winston & Strawn LLP.

Chartered teams are guaranteed racing slots in NASCAR’s elite Cup Series. The parties declined to disclose financial terms of the deal.

“This resolution reflects our shared commitment to maintaining a fair and equitable framework for long-term participation in America’s premier motorsport, one that supports teams, partners, and stakeholders while ensuring fans enjoy uninterrupted access to the best racing in the world,” according to a joint statement Thursday from the parties. “The agreement allows all parties to move forward with a unified focus on advancing stock car racing and delivering exceptional competition for our fans.”

The agreement, subject to approval by Judge Kenneth W. Bell, would end a case brought last year by 23XI—which is co-owned by driver Denny Hamlin—and Front Row accusing NASCAR of achieving its dominance through anticompetitive and exclusionary practices that leaves many teams financially vulnerable.

Jordan’s lawsuit in the US District Court for the Western District of North Carolina was motivated by failed negotiations between NASCAR and the racing teams over a new charter agreement, a contract that guarantees racing spots in the Cup Series and money for performance.

The racing team plaintiffs previously were thwarted in a legal bid to compete in the 2025 NASCAR season under the coveted charter designation, after the Fourth Circuit last year reversed a trial court’s injunction.

“It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans,” Jordan said in a statement. “With a foundation to build equity and invest in the future and a stronger voice in the decisions ahead, we now have the chance to grow together and make the sport even better for generations to come. I’m excited to watch our teams get back on the track and compete hard in 2026.”

Jim France, NASCAR chairman, said in the same statement that the “agreement reaffirms our commitment to preserving and enhancing that value, ensuring our fans continue to enjoy the very best of stock car racing for generations to come.”

Other settlement details weren’t immediately available.

Winston & Strawn LLP represents 23XI and FrontRow Motorsports. Latham & Watkins LLP represents NASCAR.

The case is 2311 Racing LLC v. NASCAR, W.D.N.C., No. 3:24-cv-00886.