In 2024, 23XI Racing and Front Row Motorsports did not agree to new charter terms proposed by NASCAR, starting the stoush in earnest.

The two teams took NASCAR to court over what it said were anti-competitive practices, beginning a long and arduous battle that played out in the public eye.

Although the parties eventually settled after eight days in court, it’s effectively a win for the teams with terms that they stand to benefit from.

There were implications for the two teams that if there was no resolution, they may not continue competing. Now their future is secure, with NASCAR formally returning the charters to the teams that they relinquished.

Furthermore, their charters will be considered “evergreen” by NASCAR – subject to approval from the other 13 teams.

NASCAR said it wouldn’t detail the exact terms of the agreement – but according to the Associated Press, teams will now share international revenue for the first time.

Teams will get a third of revenue from intellectual property, and terms will be renegotiated with each media rights deal.

“From the beginning, this lawsuit was about progress,” said 23XI Racing co-owner Michael Jordan.

“It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans.

“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.”

Denny Hamlin was one of the instigators of the legal battle, believing his team and others had been delivered a bad deal by NASCAR during charter negotiations.

As it stands, the charter awards teams $12 million to $13 million annually, though 23XI Racing and Front Row Motorsports said it needed $20 million to be financially sustainable.

The current charter agreement runs through 2031.

“I’ve cared deeply about the sport of NASCAR my entire life. Racing is all I’ve ever known, and this sport shaped who I am,” said Hamlin, who co-owns 23XI Racing with Jordan.

“That’s why we were willing to shoulder the challenges that came with taking this stand.

“We believed it was worth fighting for a stronger and more sustainable future for everyone in the industry.

“Teams, drivers, and partners will now have the stability and opportunity they deserve.

“Our commitment to the fans and to the entire NASCAR community has never been stronger.

“I’m proud of what we’ve accomplished, and now it is time to move forward together and build the stronger future this sport deserves.”

NASCAR itself has been on the receiving end of the blowtorch with damaging remarks coming to light during the legal process.

Stock car racing’s governing body and largest promoter said the agreement would be beneficial across the board.

“This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans, which has always been our highest priority since the sport was founded in 1948,” said NASCAR CEO and chair Jim France.

“We worked closely with race teams and tracks to create the NASCAR charter system in 2016, and it has proven invaluable to their operations and to the quality of racing across the Cup Series.

“Today’s 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.

“We are excited to return the collective focus of our sport, teams and racetracks toward an incredible 78th season that begins with the Daytona 500 on Sunday, Feb. 15, 2026.”

Had the trial gone all the way, there were serious fears that if the teams won then NASCAR would be forced to pay at least $300 million USD ($452 million AUD) in damages.

There were implications for NASCAR and its tracks, of which it owns half on the Cup Series schedule. The judge could have forced NASCAR to sell up or alter the terms of the charter agreement that prevent teams from using its Next Gen cars outside of the Cup Series.

Formal Statement From Wood Bros Racing (for immediate release):

“great news”

— Wood Brothers Racing (@woodbrothers21) December 11, 2025

In a joint statement, NASCAR, along with 23XI Racing and Front Row Motorsports, welcomed the changes.

“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,” the statement read.

“The agreement allows all parties to move forward with a unified focus on advancing stock car racing and delivering exceptional competition for our fans.

“With this matter now resolved, all parties look forward to working together, alongside all chartered race teams, to deliver world-class events, dynamic sponsorship and partner activation opportunities, and continued growth for generations to come.

“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 financial terms of the settlement are confidential and will not be released.

“What all parties have always agreed on is a deep love for the sport and a desire to see it fulfill its full potential. This is a landmark moment, one that ensures NASCAR’s foundation is stronger, its future is brighter, and its possibilities are greater.

“We extend our sincere thanks to Judge Kenneth Bell and mediator Jeffrey Mishkin for their professionalism, and guidance throughout this process and to their jury for their time.”

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