Experts: NASCAR likely paid $36M–$182M to end bitter charter dispute
The high-profile antitrust lawsuit between NASCAR and two of its Cup Series teams, 23XI Racing (co-owned by Michael Jordan and Denny Hamlin) and Front Row Motorsports, came to an abrupt end on December 11, 2025, after nine days of trial in U.S. District Court in Charlotte.
What began as a bitter dispute over the charter system—NASCAR's franchise-like model that guarantees teams entry into races and revenue shares—ended in a confidential settlement that, according to legal experts, likely cost the sanctioning body tens or even hundreds of millions in damages.
While exact financial terms remain undisclosed, antitrust specialists interviewed by Sports Business Journal provided insightful estimates into the probable payout.
Meegan Hollywood, an experienced antitrust litigator at the Shinder, Cantor & Lerner law firm, suggested NASCAR likely paid between 10% and 25% of the $365 million in combined damages originally sought by 23XI and Front Row.
That would translate to a settlement range of $36.5 million to $91.25 million.
A second anonymous antitrust attorney, speaking candidly, believed it was improbable the teams accepted less than 50%—potentially pushing the figure as high as $182.5 million.
These estimates underscore the high stakes NASCAR faced as the trial progressed.
Heading into the proceedings, the teams appeared to hold a significant advantage following a key pretrial ruling by U.S. District Judge Kenneth Bell.
Bell determined that NASCAR operated as a monopsony (a single buyer in the market for premier stock car racing teams), based in part on language from NASCAR's now-dismissed countersuit that effectively conceded this status.
This ruling narrowed the jury's focus to whether NASCAR abused its market power and whether that abuse harmed the plaintiffs financially.
With damaging testimony emerging—including from Michael Jordan himself—and the risk of a jury verdict awarding treble damages under antitrust law (potentially exceeding $1 billion when factoring broader industry claims), settlement offered NASCAR a path to certainty.
Beyond the direct payout, the legal battle was extraordinarily expensive for all parties. 23XI and Front Row retained the prestigious firm Winston & Strawn, known for handling complex sports antitrust cases, while NASCAR enlisted Latham & Watkins, another elite firm.
Hollywood estimated combined attorney fees across both sides could total around $50 million, though the anonymous expert suggested the bill might approach double that—up to $100 million—given the case's duration, high-profile witnesses, and extensive discovery.
The settlement not only resolved the immediate financial claims but also delivered structural changes to NASCAR's business model, benefiting all chartered teams.
Key concessions include "evergreen" or permanent charters (eliminating expiration dates), a reinstated "five-strike" rule allowing teams to collectively oppose new directives, a share of international media rights revenue (previously zero for teams), and one-third of new deals involving team intellectual property.
The plaintiffs also regained their charters, which they had lost during litigation, along with compensation for racing as non-chartered "open" entries in parts of the 2025 season.
For NASCAR, the decision to settle, despite the hefty price tag, bought invaluable predictability.
As Hollywood noted, avoiding a jury verdict prevented potentially court-mandated overhauls that could have stripped the organization of control over its operations. Instead, the agreement allowed NASCAR to implement changes on its own terms, preserving internal authority while addressing team concerns.
She anticipates NASCAR will now consult lawyers to refine contracts and rules—such as modifying non-compete clauses with racetracks—to mitigate risks of future antitrust challenges.
This resolution marks a pivotal moment for NASCAR, closing a contentious chapter that exposed vulnerabilities in its governance model.
While the France family-controlled sanctioning body avoided a devastating loss in court, the payout and concessions signal a shift toward greater equity for teams.
Ultimately, the settlement prioritizes long-term stability, fostering collaboration in an industry where teams and the league are inextricably linked.
As both sides emphasized in joint statements, the focus now returns to growing the sport for fans, drivers, and partners alike.