NASCAR, 23XI and Front Row reach settlement, ending antitrust trial

CHARLOTTE -- NASCAR reached an agreement with 23XI Racing and Front Row Motorsports on Thursday, ending NASCAR’s antitrust trial on its ninth day.

“I’m pleased to say the parties have positively settled this matter in a way that will benefit the industry going forward,” teams attorney Jeffrey Kessler told Judge Kenneth Bell.

A document with terms of the settlement was reviewed by Bell, marking the end of the lawsuit brought on by 23XI and Front Row.

NASCAR’s antitrust trial stemmed from a bitter dispute over negotiations for a new agreement with the charter system that governs the relationship between NASCAR and its premier teams. 23XI and Front Row sued NASCAR Holdings for $365M in combined damages. Through their lawyers led by Winston & Strawn, the two teams claimed NASCAR exerted monopsony power illegally and hurt the value of NASCAR teams as a result.

Some in the jury pumped their fist as Judge Bell told them that the trial is over, following the settlement. Bell said the result is “great for NASCAR the entity, for NASCAR the industry, teams, drivers and ultimately for the fans, so I’m very happy at this resolution.”

After the trial’s conclusion, Kessler said NASCAR had agreed to evergreen charters “forever.” The sides say that financial terms of the settlement won’t be announced but confirmed that all charter holders will get an updated version to sign with an evergreen provision.

“We believe it’s a settlement that’s going to grow this sport. That’s going to be great for the teams and for NASCAR, but most importantly for the fans,” Kessler said. “This case was filed 15 months ago. This was never about just 23XI. It was never just about Front Row. It was about trying to do something that was great for everyone. And as part of this deal, we are going to have evergreen charters that will be available forever.”

In a team statement, 23XI co-owners Michael Jordan and Denny Hamlin both echoed Kessler’s satisfaction and optimism about the settlement.

“From the beginning, this lawsuit was about progress,” Jordan said. “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.”

Said Hamlin: “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.”

Bell told the jury before he dismissed them that they are now free to talk about the case or not to whomever, so some could eventually speak out publicly on their thoughts on the trial. The judge repeatedly praised the jury for being engaged, with Bell saying that his assistant called the nine-member group “her favorite jury of all time.”

Bell said the jury helped bring about the settlement, adding that he knows in some ways it will be “dispiriting” to them that they sat through eight full days of trial and didn’t ultimately get to render a verdict. But he added: “Sometimes the parties just need to see how the case unfolds to see the wisdom of settlement.”

NASCAR chairman and CEO Jim France said in a statement that the 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.”

“We worked closely with race teams 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,” France said. “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.”