“Level Heads” Prevail as NASCAR and Teams Strike Deal on Permanent Charters

Fourteen months after 23XI Racing and Front Row Motorsports filed an antitrust suit against NASCAR, a settlement was reached prior to the beginning of the federal trial’s ninth day, giving the Cup teams the permanent Charters they so desperately wanted during the 2025 Charter negotiations.

The Charters possessed by 23XI Racing and FRM prior to their decision not to sign the 2025 Charter agreement will be returned to the teams.

“As a condition of the settlement agreement, NASCAR will issue an amendment to existing charter holders detailing the updated terms for signature, which will include a form of ‘evergreen’ charters, subject to mutual agreement,” the two sides said in a joint statement issued after US District Judge Kenneth Bell announced a settlement had been reached. “The financial terms of the settlement are confidential and will not be released.”

However, the Associated Press reported:

• Teams will now share in international revenue for the first time
• The three-strike rule will be reinstated as a five-strike rule
• Teams will get a third of revenue from IP
• Charter revenue will have to be periodically negotiated amidst new media rights deals

During the 2 1/2 years of negotiations concerning the 2025 Charter agreement, the teams had four pillars:

• Permanent Charters
• $720 million annually, which was $20 million per Charter car
• A seat at the table regarding governance of the sport
• One-third of all new revenue

“I’ve said this from day one, the only way this sport’s gonna grow is we have to find some energy between the two entities,” Michael Jordan, majority owner of 23XI Racing, said as he stood on the federal courthouse steps with all of the parties involved in the antitrust suit. “I think we’ve gotten to that point.

“Level heads have got us to this point where we can actually work together. I’m very proud about that and I think Jim (France) feels the same way.”

NASCAR Chairman Jim France, who stood on Jordan’s left on the courthouse steps, agreed.

“We can get back on focusing what we really love, and that’s racing,” the 81-year-old France said. “We spent a lot of time not really focused on that so much as we need. I feel like we’ve made a very good decision here together and we have a big opportunity to continue growing the sport.

“We’ve got Denny Hamlin getting ready to go for a championship, and we need to focus on what we all love.”

Hamlin briefly put a hand on France’s shoulder during the short press conference outside the courthouse. As they left the courthouse, Lesa France Kennedy walked up to Jordan and shook his hand.

When asked what the impetus was for Thursday’s settlement, Jordan replied, “Level heads.”

“In all honesty, when you get to the finish line sometimes you have to think not just for yourself, but you’ve got to think about this sport as a whole,” Jordan said. “I think both parties got to that point, and we realized that we can have an opportunity to settle this. We dove in and we actually did it.

“Both parties feel like it’s worth it because we understand we had to work together. Compromising (in) negotiations is one of the toughest things that you can do. I think that you can say that we both compromised on both of our agendas, and I think we both came to the conclusion that it’s better for the sport.”

Jordan noted he grew up watching France’s father, Bill France Sr., build the sport and “I didn’t want to have to tear it down.”

“I don’t think he wanted it to be torn down, but I think under calmer circumstances, we actually voiced what our interests may have been collectively, and at the end of the day we reached some type of compromise. To me, that’s in every negotiation. That’s in every agreement.

“I’m very happy we stand on this step to move forward as opposed to moving separate.”

After reading the agreement and approving it, Judge Bell said, “I wish you had done this a couple of months ago. This is the right thing to do. It’s great for NASCAR, it’s great for the industry of NASCAR, the teams and drivers and ultimately the fans.”