CHARLOTTE, N.C. — Michael Jordan’s race team will continue to compete in NASCAR.
With uncertainty of what would happen to Jordan’s 23XI Racing as well as Front Row Motorsports as they sued NASCAR on antitrust grounds, the two sides settled Thursday after a brutal 15-plus months of sparring in court, especially in the eight days of trial.
The settlement awards charters to 23XI Racing and Front Row Motorsports — both had relinquished their charters when they didn’t sign the 2025-31 agreement to pursue the lawsuit — as well as an amendment to the agreement for all teams with a form of “evergreen” charters, subject to mutual agreement.
Financial terms of the settlement were not disclosed.
“Both parties feel like it’s worth it — because we understand we had to work together,” Jordan said outside the courthouse. “Compromise in every negotiation is one of the toughest things that you can do.
“And I think that you can say that we both compromised on both of our agendas, and I think we both come to the conclusion that it’s better for the sport.”
Michael Jordan and 23XI Racing are pleased with their settlement with NASCAR.
Jordan said they were like “two competitors” in getting the settlement done.
“The fans have always been the best solution to this, over us here, to the sport itself — the only way that, and I’ve said this from Day 1, the only way this sport is going to grow is we have to find some synergy between the two entities,” Jordan said.
“And I think we’ve gotten to that point. Unfortunately, it took 16 months to get here. But I think level heads have got us to this point to where we can actually work together and really grow this sport. I’m very proud about that.”
NASCAR Chairman Jim France stood beside Jordan outside the courthouse.
“I feel the same,” France said. “We can get back to a focus on what we really love, and that’s racing. … We made a very good decision here together. We have a good opportunity here to grow the sport.”
France had just finished testifying Wednesday — Jordan testified the previous Friday — and there were at least two days of witnesses scheduled. But testimony never resumed Thursday as the judge waited two hours for the sides to hash out the settlement.
“I grew up watching [Jim’s] father construct this sport,” Jordan mentioned. “I did not wish to need to tear it down. I do not suppose he needed it to be tore down. However I feel within the calmer circumstances, we really voiced what our curiosity might have been, collectively, and on the finish of the day, we reached some kind of compromise.
“And to me, that is in each negotiation. That is in each settlement, I am very joyful we stand on this step to maneuver ahead, versus transferring separate.”
As they waited for the ultimate signatures, NASCAR attorneys shook arms and chatted with Jordan, and NASCAR President Steve O’Donnell talked with the basketball icon after the settlement.
Jordan is almost all proprietor of 23XI Racing, whereas star driver Denny Hamlin owns 40 p.c. Whereas Jordan has been the nationwide face of the lawsuit, Hamlin has been the face contained in the racing business as his competitor obligations require him to talk to the media prior to each race.
“Every little thing inside the settlement goes to develop the game,” Hamlin mentioned. “It’s going to be higher for everybody. There’s little question about it.”
Hamlin appeared assured within the case main as much as the trial because the groups claimed that NASCAR didn’t present them with an economically viable enterprise mannequin by means of the constitution settlement. The choose had already dominated the groups had a monopoly as NASCAR sanctions the races, owns greater than half the tracks and units a base value for its race automobiles due to the required use of single-source suppliers for components and items. Exclusivity clauses within the monitor sanction agreements and the constitution agreements with the groups, together with the lack to make use of the Subsequent Gen automobile at different occasions, hold a competitor from forming, the groups alleged.
If the jury decided NASCAR had utilized anticompetitive acts to retain the monopoly, it may have awarded 23XI and FRM mixed damages of greater than $300 million — and the choose may have tripled that quantity.
The choose additionally may have pressured NASCAR to promote its tracks or alter the exclusivity provisions and even do away with the constitution system — a system that ensures groups a spot in every race and a set base of income.
The settlement that 13 of the 15 Cup groups signed in September 2024 awards the groups $12-13 million yearly, whereas 23XI and FRM contended that they want $20 million yearly. The settlement additionally ends in 2031 with a possible seven-year extension by means of 2038 — with out the assure of any improve in payouts to the groups.
23XI Racing will proceed to compete in NASCAR because of Thursday’s choice.
Within the constitution negotiations, groups had lobbied for everlasting charters, and that the “evergreen” language for all groups will probably be added is taken into account the most important victory within the lawsuit.
There was no assure the groups would win the trial, and the groups confronted the prospect of possible going out of enterprise in the event that they remained with out charters, as a group with out charters possible would make lower than $5 million from NASCAR through the season. The groups didn’t signal the constitution settlement due to a provision that they may not sue NASCAR, and filed the antitrust lawsuit as a substitute.
“Degree heads [won],” Jordan mentioned. “If you get to the end line, generally you must suppose not only for your self, however you bought to consider the game as an entire.
“And I feel each events acquired to that time, and we realized that we will have a possibility to settle this, and we dove in, and we really did it. Sadly, it took us that lengthy, however we acquired right here and that is all that issues.”
NASCAR had contended all alongside that this was negotiation by means of litigation. And whereas the lawsuit is over, bitter emotions may proceed.
A number of texts and emails of NASCAR executives making disparaging feedback about drivers, in addition to long-time proprietor Richard Childress, gained’t be forgotten.
The groups additionally aren’t unscathed as their monetary data (identical to NASCAR’s) is now public.
The 23XI Racing inner squabbles additionally had been delivered to mild — Jordan’s personal enterprise executives complained about Hamlin and his extreme spending.
“It’s a wedding — if I didn’t have folks having checks and balances on me, I’d do the whole lot I may to win races,” Hamlin mentioned. “You at all times want folks inside an organization [to see] that the enterprise is operating correctly.
“And that’s basically what we had been attempting to guard with this lawsuit – that this group is right here for the long term.”
Bob Pockrass covers NASCAR and INDYCAR for FOX Sports activities. He has spent many years overlaying motorsports, together with over 30 Daytona 500s, with stints at ESPN, Sporting Information, NASCAR Scene journal and The (Daytona Seashore) Information-Journal. Comply with him on Twitter @bobpockrass.
