NASCAR abruptly ended a high-profile antitrust showdown Thursday, striking a NASCAR 23XI settlement that brought a dramatic halt to a nine-day trial over allegations it illegally cemented a monopoly over top-tier stock car racing. The deal came moments after the plaintiffs — including 23XI Racing, co-owned by retired NBA legend Michael Jordan and driver Denny Hamlin — accused the organization of wielding the sport’s charter system as a weapon to control the racing landscape.

A Surprise Settlement Amid Rising Tensions

Plaintiffs’ attorney Jeffrey Kessler of Winston & Strawn LLP told U.S. District Judge Kenneth D. Bell shortly after 10 a.m. that both sides had “positively settled this matter,” confirming all terms were agreed upon but needed to be finalized. The announcement followed a 90-minute recess and landed just one day after 23XI and Front Row Motorsports rested their case. Jordan and Hamlin, who had attended every session, watched from the courtroom as the proceedings came to an unexpected stop.

Charter System at the Heart of the Clash

The lawsuit revolved around NASCAR’s charter system, launched in 2016 to give teams greater stability with guaranteed entries into Cup Series races and a share of lucrative media revenues. But the model became a flashpoint during the 2025 contract negotiations, which 23XI and Front Row refused to sign. Their complaint alleged NASCAR twisted the original 2016 agreements into a set of anticompetitive restrictions, including track exclusivity terms and broad noncompete clauses that locked teams into NASCAR’s orbit.

Without signing the new contracts, both teams were forced to compete “open,” meaning they had no guaranteed spots, faced losing sponsors and drivers, and remained ineligible for significant payments tied to charter participation. Multiple witnesses described the leverage as overwhelming, with some testifying they felt like there was a “gun to my head” when asked to sign.

Owners Take the Stand in a Rare Public Showdown

Jordan, Hamlin, and Front Row owner Bob Jenkins all testified during the first week, detailing the financial pressure, lack of negotiating power, and what they called NASCAR’s “take-it-or-leave-it” ultimatum. NASCAR issued the contracts on Sept. 6, 2024, giving teams until midnight to sign or lose their charters. NASCAR argued the teams knew the deadline as early as Aug. 30, but several owners — including Heather Gibbs of Joe Gibbs Racing and Richard Childress of Richard Childress Racing — said the pressure tactics left little room for real negotiation.

Jordan emphasized on the stand that he would “never jeopardize NASCAR,” but insisted the 2025 terms were fundamentally one-sided.

Legal Teams Behind the Fight

23XI and Front Row were represented by Jeffrey L. Kessler, Jeanifer Parsigian, Danielle Williams, Joshua Hafenbrack, Michael Toomey, and Matthew R. DalSanto of Winston & Strawn LLP.

NASCAR’s defense team included John E. Stephenson Jr. of Alston & Bird LLP; Chris Yates, Lawrence E. Buterman, Ashley M. Bauer, Anna M. Rathbun, Jennifer L. Giordano, Marguerite M. Sullivan, David L. Johnson and Christopher J. Brown of Latham & Watkins LLP; and Tricia W. Magee of Shumaker Loop & Kendrick LLP.