Jim France concedes in antitrust lawsuit and accepts permanent charters for teams

NASCAR reached an agreement with 23XI Racing and Front Row Motorsports that ends the most significant antitrust lawsuit in the history of the series. The deal establishes permanent charters for all teams, eliminating the system of periodic renewal that had sparked the conflict.

The three parties announced the resolution on December 11, hours before the jury was set to begin deliberations. NASCAR will return the charters it had withdrawn from 23XI and FRM as part of the agreement. The financial terms will not be made public.

What is a Charter in NASCAR

NASCAR introduced the charter system in 2016 to provide stability for teams. A charter guarantees a spot in every Cup Series race and access to a portion of the series' prize money distribution. Before 2016, teams had to qualify each weekend and had no financial guarantees.

There are 36 charters for the 40 available spots in each race. The remaining four teams compete for "open" positions with less prize money. A charter can be sold between teams, and its value has grown exponentially: from approximately $2 million in 2016 to figures exceeding $40 million in 2024.

The problem was that charters functioned as renewable licenses. NASCAR retained the authority to revoke them based on performance and compliance criteria. Teams could not plan long-term investments without certainty of keeping their place in the series.

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Why 23XI and Front Row Sued

23XI Racing is owned by Michael Jordan, Denny Hamlin, and Curtis Polk. Jordan purchased the team in 2020 and operates three cars in the Cup Series. Front Row Motorsports is owned by Bob Jenkins, who has been in NASCAR for over 20 years with two full-time cars.

These two teams were the only ones that rejected the charter agreement NASCAR offered in September 2024. The other 13 teams signed under pressure of losing their spots for the 2025 season.

23XI and FRM filed an antitrust lawsuit alleging that NASCAR: absolutely controls the stock car racing market in the United States, prevents teams from competing in other series, retains an excessive percentage of revenue compared to other series, and uses contracts with "take-it-or-leave-it" clauses with no room for real negotiation.

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Nine Days of Trial That Exposed the Real Conflict

The trial began on December 1 in North Carolina. The lawyers for 23XI and FRM had to prove three things: that NASCAR operates as a monopoly, that it uses that power to harm teams, and that the teams suffer measurable economic damage.

How the Teams Gained Access to NASCAR's Internal Communications

In the United States, when there is a civil trial, both parties must hand over relevant internal documents for the case. This is a mandatory process called "discovery." If a company refuses, the judge can sanction it or rule against it.

The lawyers for 23XI and FRM requested years of emails, text messages, and communications among NASCAR executives. The organization had to hand them over.

Those messages became the most important evidence in the trial because they contradicted NASCAR's public narrative. The organization publicly stated it was "working collaboratively" with teams, but internal communications showed a different reality: executives frustrated with Jim France blocking negotiations, contempt for veteran owners, and deliberate strategies to eliminate competition.

Jeffrey Kessler, the lead attorney for the teams, used those messages to confront every NASCAR executive who testified. He would show them their own texts and emails and then ask if they remembered writing them.

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The Teams Opened by Showing They Lose Money

Denny Hamlin testified on the first day. The 23XI lawyers used him to establish that teams don't just compete on the track; they also compete against NASCAR for resources: "First, I have to defend myself from the series. If a new sponsor wants to come in, NASCAR goes after them. I have to fight against them. I have to fight against other teams. I have to fight for employees." Hamlin earns $14 million annually as a driver for Joe Gibbs Racing, but as co-owner of 23XI, he faces operational losses.

Bob Jenkins took the argument further. He revealed that Front Row loses $6.8 million every year. It has never had net profits in its 20 years of operation. He doesn't pay himself a salary. "There are 150 employees in that shop who believe in me to make this work," he explained about why he continues to operate at a loss.

Richard Childress, a veteran owner with 55 years in NASCAR, confirmed that his team only stays in the black thanks to outside businesses: "I'd be broke if I only did the Cup teams."

Economist Edward Snyder presented the final calculation: $364.7 million in total damages ($215.8 million for 23XI and $148.9 million for FRM) based on the difference between what NASCAR pays and the real market value of the teams' share.

Michael Jordan Explained Why He Sued

Jordan testified on December 5. The lawyers needed to show that a serious investor considered the system unfair. Jordan described overseeing the team from a "100-foot view" but attends between 10 and 12 races a year. When asked why he purchased a third charter in the middle of the trial, he responded: "People who know me know I like to win, and I will chase anything to win. Getting a third charter improves our championship chances."

Then he made the comparison the lawyers needed: "We never thought we would get what basketball gets, but we thought we could get close to 45 percent. If you share responsibility, the health of the sport can grow." In the NBA, players and the league split revenue 50/50. NASCAR retains over 60%.

The Critical Moment: September 6, 2024

The teams' lawyers dedicated considerable time to proving that NASCAR forced the agreement using its dominant position. Heather Gibbs, of Joe Gibbs Racing, recounted that Jim France told her family: "I'm done with this conversation. If I wake up and I have 20 charters, I have 20. If I have 30, I have 30." The final draft arrived at 5 p.m., and they had until 6 p.m. to sign.

Bob Jenkins described that hour: "It was insulting and backwards. There was a lot of passion, a lot of emotion, especially from Joe Gibbs. Joe felt he betrayed me by signing. Not a single owner said, 'I was happy to sign it.' Not one."

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Internal Messages Contradicted Jim France

Jim France testified on December 9. Jeffrey Kessler confronted him with emails and messages that NASCAR had provided as part of the legal process. France responded, "I don't recall" to most questions about those communications.

The most revealing moment came when Kessler asked him about permanent charters. France stated: "I don't know how you can make something permanent in this changing world. I just don't feel comfortable making deals that last forever."

That answer directly contradicted Steve Phelps, NASCAR's commissioner, who had testified hours earlier. Kessler showed Phelps an email where he wrote to Rick Hendrick: "We wish we could give you permanent charters, but Jim doesn't want that." Phelps said he did not recall that exchange.

Messages presented as evidence showed that several NASCAR executives considered France "the brick wall" in negotiations. Steve O'Donnell, president of NASCAR, had written in February 2023: "I hoped the future board of directors would include the next generation. The legacy mindset on NASCAR's board inhibited growth."

Scott Prime, executive vice president, acknowledged under questioning that the September 6 offer was a "gun to the head" proposal. Kessler also presented messages where NASCAR discussed strategies to eliminate SRX, a competing short-track series that several NASCAR drivers and owners supported.

In one of the most uncomfortable exchanges, messages from NASCAR executives about Richard Childress were revealed. The texts said Childress "needs to be taken outside and whipped. He's a stupid redneck who owes all his fortune to NASCAR." Childress is considering legal action over those messages.

The Judge Warned NASCAR About Its Defense

Kenneth Bell, the federal judge presiding over the case, warned NASCAR that "growing the sport" was not a valid defense in an antitrust case. He explained that such an argument could be considered an admission that NASCAR used its dominant position to impose terms unilaterally.

Bell also indicated that the trial would likely extend beyond the scheduled 10 days. On the ninth day, the parties announced they had reached an agreement.

Statements After the Agreement

Michael Jordan: "From the beginning, this lawsuit was about progress. It was about ensuring 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 opportunity to grow together."

Denny Hamlin: "I have cared deeply about the sport of NASCAR my entire life. Racing is all I've ever known. That's why we were willing to endure the challenges that came with taking this stance. We believed it was worth fighting for a stronger and more sustainable future for everyone in the industry. The teams, drivers, and partners will now have the stability and opportunity they deserve."

Bob Jenkins: "After more than 20 years in this sport, today gives me real confidence about where we are headed. I love this sport, and it was clear we needed a system that treated our teams, drivers, and sponsors fairly and kept competition strong. With this change, we can finally build long-term value and have a real voice in the future of NASCAR."

Curtis Polk, co-owner of 23XI: "My goal as a member of the Team Negotiating Committee was to help create an economic model that was more sustainable for the teams and create a more equitable and transparent system within NASCAR. This agreement achieves considerable progress toward the Four Pillars. The outcome better aligns NASCAR and the chartered teams and supports future growth and sustainability for all."

Jim France: "This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans, which has always been our top priority since the sport was founded in 1948. We worked closely with teams and tracks to create NASCAR's charter system in 2016, and it has proven invaluable to their operations. Today's agreement reaffirms our commitment to preserving and enhancing that value."

NASCAR Avoids Jury Verdict

The agreement came before deliberations. Had the jury ruled in favor of 23XI and FRM, NASCAR would have faced court-ordered structural changes and significant economic damages.

Judge Kenneth Bell had warned NASCAR that "growing the sport" was not a valid defense in an antitrust case. He also indicated it could be considered an admission of guilt.

Internal messages presented as evidence showed that NASCAR executives considered Jim France "the brick wall" in negotiations. Steve O'Donnell wrote in February 2023: "I hoped the future board of directors would include the next generation. The legacy mindset on NASCAR's board inhibited growth."

Scott Prime, NASCAR's executive vice president, had acknowledged that the September 6 offer was a "gun to the head" proposal.

The 2026 Season

The 36 charters are confirmed for NASCAR's 78th season, which begins on February 15, 2026, with the Daytona 500. All teams will operate under the new permanent charter framework once the contractual amendment is signed.

The change also affects team valuation for private investment. Trackhouse Racing, Spire Motorsports, and other teams with private equity fund participation now have permanent assets on their balance sheets, not temporary permits.