NASCAR Reaches Landmark Settlement with 23XI Racing and Front Row Motorsports, Ushering in Era of ‘Evergreen’ Charters
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DAYTONA BEACH, FL – December 15, 2025 – NASCAR has officially resolved it’s contentious legal battle with 23XI Racing and Front row motorsports (FRM), paving the way for a more stable and equitable future for its teams.The settlement, announced today, culminates a year-long dispute centered on the terms of team charters and revenue sharing within the premier motorsport series. while specific financial details remain confidential, the agreement establishes a framework for “evergreen
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Wikipedia‑Style Background
The NASCAR charter system was introduced in 2016 as part of a broader effort to stabilize team ownership and guarantee entry into every points‑paying race for a set of “chartered” teams.Each charter,essentially a franchise license,guarantees a spot in the 36‑car field and entitles the owner to a share of certain league revenues (broadcast,sponsorship,and licensing). Initially 36 charters where issued, with a few “open” slots for non‑chartered teams.
By 2020, the charter model had become a point of contention. Critics argued that it created a quasi‑monopoly, locking new entrants out and allowing charter owners to command disproportionate revenue streams.The issue resurfaced in 2023 when NASCAR announced a restructuring of its revenue‑sharing formula, reducing the percentage of TV and sponsorship revenue allocated to charter owners from 55 % to 40 %.
Two teams – 23XI Racing,co‑founded by Michael Jordan and Denny Hamlin in 2020,and Front Row Motorsports (FRM),an independent outfit founded in 2005 – filed antitrust lawsuits in early 2024. They alleged that the charter system violated the Sherman Act by creating an exclusive club that hindered competition and suppressed the market for non‑chartered teams.
After a year of negotiations and mediation,a settlement was reached in December 2025. The agreement introduced “evergreen charters,” which are automatically renewed for a ten‑year term unless a team voluntarily relinquishes the charter or is found to be in breach of league rules. The settlement also established a revised revenue‑sharing model and a dispute‑resolution committee to oversee charter‑related grievances.
Key Timeline & Facts
| Year | Event | Charter Count (Total / Evergreen) |
Revenue Share % (Charter Owners) | Legal Action | Settlement Highlights |
|---|---|---|---|---|---|
| 2016 | Charter system launched | 36 / 0 | ≈55 % | – | – |
| 2020 | 23XI Racing awarded charter (via purchase from Leavine family Racing) | 36 / 0 | ≈55 % | – | – |
| 2023 | NASCAR announces revised revenue‑sharing model (down to 40 % for charter owners) | 36 / 0 | ≈40 % | – | – |
| Feb 2024 | 23XI Racing & Front Row Motorsports file antitrust suits in U.S. District Court (Southern District of Florida) | 36 / 0 | ≈40 % | Sherman Act – claim of anti‑competitive charter monopoly | – |
| July 2024 | Federal Trade Commission (FTC) opens examination into NASCAR’s charter practices | 36 / 0 | ≈40 % | FTC antitrust probe | – |
| oct 2025 | Mediation facilitated by the Sports arbitration Forum (SAF) | 36 / 0 | ≈40 % | Settlement negotiations | Framework for “evergreen” charters drafted |
| Dec 15 2025 | settlement announced – evergreen charters, revised revenue split, charter‑dispute committee formed | 36 / 36 (all charters now evergreen) | ≈45 % (new tiered model: 45 % for top‑10 charter owners, 38 % for rest) | Both suits dismissed following settlement | Charters auto‑renew for 10 years; optional “voluntary relinquishment” clause; $5 M annual escrow fund for dispute resolution |
Key Figures Involved
- Brian France – Chairman & CEO of NASCAR, primary negotiator for the settlement.
- Michael Jordan – Co‑owner of 23XI Racing,public face of the antitrust claim.
- Denny Hamlin – Co‑owner/Driver of 23XI Racing, instrumental in charter acquisition strategy.
- Bob Jenkins – Principal of Front Row Motorsports, led the lawsuit on behalf of smaller teams.
- Attorney General Letitia James – New York AG who filed an amicus brief supporting the plaintiffs.
- FTC Chair Lina Khan
