What's Next: With NASCAR Antitrust Lawsuit Over, Questions Linger

CHARLOTTE, N.C. — The biggest lawsuit in NASCAR history is over.

But questions certainly remain on the 23XI Racing and Front Row Motorsports antitrust lawsuit against NASCAR, how it went eight days into trial before settling Thursday afternoon and what impact it will have on the future.

Here are some thoughts:

Who won?

It’s pretty clear 23XI Racing and Front Row Motorsports were big winners. It appeared they were winning the trial and the only risk they had is, even if they did win, whether they would get their charters back while NASCAR appealed any decisions. So the settlement eliminates that risk. But from all indications, they received a significant financial award, in addition to the changes in the charter agreement that gives teams a guaranteed spot in every race and guarantees a fixed, base amount of revenue.

Did the non-suing teams win?

They got permanent charters as well as, from among those briefed on the changes, a portion of revenues from international media rights and new business from team intellectual property. And sources indicate they got back a "strike rule" with a five-strike rule over the six years left in this deal. Anytime NASCAR makes a change that could cost at least $500,000 per car and the teams don’t approve it, it’s a strike. If NASCAR gets five strikes, then the exclusivity clause in the charter agreement is nullified.

Michael Jordan, co-owner of 23XI Racing, departs the Charles R Jonas Federal Building on December 1, 2025 in Charlotte, North Carolina.

What is the framework of the evergreen charters?

The terms of the settlement haven’t been disclosed, but according to multiple people associated with the teams, it has created a collective bargaining type situation at the end of each charter agreement. The financials have to be approved by two-thirds of the teams to ratify a deal. If a team doesn’t want to sign it, the owner has time to sell the charter (likely a year). The same is true if a team doesn’t meet certain performance standards or the owner does something so egregious (such as violating gambling policy, getting in trouble with the law, etc.) that they become a prohibited person as an owner. But here’s the thing that NASCAR gets: NASCAR gets 10 percent of all charter sales instead of two percent. So over time, NASCAR recovers some of the revenue that it will distribute to teams based on the new terms.

So this lawsuit is over, right? 

The case is over. The parties will likely file a one-page stipulation of dismissal soon (it is due in 30 days).

What is the fallout of the Richard Childress testimony?

That is one of the biggest questions going forward. Childress has two potential legal issues he could pursue. The texts from NASCAR Commissioner Steve Phelps calling him an "idiot" and an "ass-clown" who should be "taken out back and flogged" likely aren’t the basis for a lawsuit, unless Childress can connect those feelings to any decisions pertaining to penalties and officiating. But the fact hat NASCAR attorneys appeared to have a pitch to investors from Bobby Hillin Jr. with some sensitive RCR Enterprises information possibly opens up Hillin to a violation of any non-disclosure agreements he signed when pursuing a purchase of a significant piece of the team.

NASCAR driver and 23XI team co-owner Denny Hamlin (L) and wife Jordan Fish depart the federal building after a long day at the beginning of the trial.

Did the Johnny Morris letter spark the settlement?

Bass Pro Shops founder Johnny Morris released a statement Wednesday night critical of NASCAR leadership and urging them to settle the case. 

"We hope the France family and team owners will reflect carefully on the damage that’s being done to NASCAR in the ongoing dispute and dig deep and strive hard for compromise," Morris said.

Morris, a long-time sponsor of RCR, also indicated that the texts show that Phelps (who called Childress in September to apologize) can’t preside over the sport.

"Many of our teammates have validly expressed concern that the commissioner’s recently revealed contempt for Richard Childress makes it abundantly clear that he and his lieutenants are not capable of being fair and objective when it comes to impartially enforcing the rules and regulations that govern the sport, including the objective assessment of fines and penalties," Morris wrote.

But did that statement really spark the settlement? That’s hard to tell. It certainly didn’t help NASCAR, especially in the court of public opinion, on whether NASCAR has respect for its teams or if it handle things well when frustrated by its teams. And if someone under an NDA gave the info to NASCAR’s attorneys, that might be more of a legal problem for that individual, but it would be a black eye for NASCAR. 

So what might have caused the settlement?

It wasn’t looking good for NASCAR in the trial. Nearly all the NASCAR executives had testified and they came off defensive and evasive, and the documents indicated that they at least made decisions based on threats of rival series. Whether the acts themselves were or were not anticompetitive might not have been an issue, as much as the issue of jurors viewing the executives in a negative light. Additionally, if they are being evasive or having a lack of memory, then it could be reasoned they probably do have something to hide. 

There also was the fact that team owners Rick Hendrick and Roger Penske were supposed to testify for NASCAR in the case. But earlier in the trial, 23XI and FRM put letters from Hendrick and Penske in front of the jury, letters they wrote to NASCAR Chairman Jim France during the negotiations begging for permanent charters. For them to try to testify about the good things NASCAR does would have been overshadowed by 23XI and FRM attorneys asking about those letters. And France would have been opening the door for Hendrick and Penske to answer uncomfortable questions about their team finances, and for Penske, about INDYCAR and its operations.

Sometimes lawsuits settle after the plaintiffs rest their case, which 23XI and FRM did Wednesday. It appeared the writing was on the wall for NASCAR. And it was time to put the pen to paper.

Why didn’t it settle earlier?

That’s the million-dollar question. Actually, 10s or maybe hundreds of millions of dollars, when considering the legal costs of this trial. Judge Kenneth Bell said he wished they could have settled a couple of months ago, as the two sides nearly settled at the end of October. Maybe the check was just a little bit too big back then for NASCAR to write. NASCAR gave it its best shot by going to trial and seeing what 23XI and FRM presented. NASCAR could have lost and sent the case into 2026 with an appeal looming, but now everyone can move on.

But really, can they move on?

Maybe even a better question. Phelps and O’Donnell texting the word "redneck" in a negative tone in a sport that has plenty of fans who take pride in a lifestyle that some would term as redneck won’t just go away with a five-minute news conference on the courthouse steps. And whether Phelps can effectively lead after that scathing Childress text remains to be seen. Phelps has great respect for many in the garage for his leadership and ability to balance all the stakeholders. Only that respect could keep him in the role he has. 

Anything else to look for in lawsuit fallout?

The drivers haven’t yet been mentioned in this piece. It would be naive to think that, if the teams have more stability and more money, the drivers aren’t going to want a piece of that. 

Let the silly season begin.

Bob Pockrass covers NASCAR and INDYCAR for FOX Sports. He has spent decades covering motorsports, including over 30 Daytona 500s, with stints at ESPN, Sporting News, NASCAR Scene magazine and The (Daytona Beach) News-Journal. Follow him on Twitter @bobpockrass.