NASCAR and the two plaintiff teams, 23XI Racing and Front Row Motorsports, reached a settlement after more than a year of litigation, ending the antitrust battle that erupted when officials issued an ultimatum requiring teams to sign a new charter agreement within six hours or face expulsion from the sport. Midway through the ninth day of testimony, the league reversed course and agreed to renegotiate on the teams’ terms, for one of the most consequential structural shifts in NASCAR’s modern era.
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At the heart of the settlement sits the decision to convert team charters into evergreen assets, effectively creating a system more comparable to franchise rights in other major sports leagues. But the concessions extended far beyond permanence. The two plaintiff teams also secured a financial settlement that, according to industry sources, appears substantial.
The monetary damages reportedly cover the stretch during which 23XI and Front Row operated without their charters, though the exact figure remains under wraps.
In addition to financial relief, NASCAR will return the six charters previously stripped from 23XI and Front Row during the legal dispute. With recent charter sales valuing the assets at roughly $45 million apiece, the restored slate of six represents nearly $300 million in reclaimed value.
A charter guarantees financial distributions and locked-in entry to every NASCAR Cup Series event, making its reinstatement central to the teams’ long-term viability.
Beyond those immediate gains, the settlement introduces sweeping changes to the league’s economic and governance structure. Teams will now have a formal voice in decision-making and will receive an increased share of NASCAR’s revenue streams.
Although the revised charter framework remains in final drafting stages, initial terms were shared with charter-holding organizations during a December 11 meeting.
According to reporting from Bob Pockrass, the new evergreen format carries several key guardrails: renewal requires approval from two-thirds of teams; any organization declining renewal retains its charter and receives at least a year, possibly more, to sell it.
The teams falling below established performance benchmarks must sell but still receive adequate time to do so; and NASCAR’s cut of charter sale proceeds rises to 10 percent, up from the previous 2 percent.
Sounds like framework of evergreen charters:
-2/3rds of teams need to OK renewal
-if don’t sign renewal, still chartered & get year or possibly more to sell charter
-if don’t meet certain performance standards, must sell but get time to sell
-nascar gets 10% of sale (was 2%) https://t.co/l64ETWUgWz— Bob Pockrass (@bobpockrass) December 12, 2025
Teams will also receive an undisclosed portion of NASCAR’s international media rights revenue, a category from which they previously received nothing, and will claim one-third of new business deals tied to team intellectual property.
One of the most notable reversals involves the reinstatement of the strike rule. Under the previous charter system, teams could issue strikes in response to rule changes they deemed objectionable; three strikes granted the ability to race in another series without penalty.
NASCAR removed that provision in the 2025 agreement, triggering widespread backlash. The rule will now return in expanded form, five strikes instead of three.
For 23XI, Front Row, and the broader garage, the settlement marks a seismic shift. It not only intends to correct the grievances at the center of the lawsuit but positions teams with unprecedented security and leverage as NASCAR enters a new era of commercial and competitive restructuring.
