Insider reveals Michael Jordan-owned 23XI has made a big decision for employees irrespective of how the NASCAR lawsuit ends

Michael Jordan's 23XI Racing are prepared for the worst-case scenario with its antitrust lawsuit against NASCAR. The team has assured their employees of financial compensation until 2026.

After the recent summary motion filed by both parties, the case is still headed for a December trial. Team owners like Joe Gibbs, Roger Penske, Richard Childress and Rick Hendrick have backed NASCAR's stance with a letter of declaration.

They're calling for an amicable resolution and to make the charter system permanent, for a loss on NASCAR's side may fundamentally change the sport's structure. On the other hand, if 23XI and FRM lose their case, the teams will permanently lose their charters.

The summary motion was initially filed by 23XI to define the market and to prove that they don't have an agency in any other motorsport. The team hoped that this would prove the monopoly held by NASCAR, but the governing body's support from other teams has split the notion.

Amidst the ongoing dispute, NASCAR insider Jenna Fryer has shared some crucial details on 23XI's future.

"Going to trial is a dangerous proposition. If the teams lose, 23XI and Front Row could simply cease to exist in NASCAR. 23XI has already told its employees they will be taken care of through the 2026 season. It isn’t financially viable for the organizations to compete without charters no matter how much money Jordan has," she wrote via APNews

Michael Jordan has previously slammed team owners like Joe Gibbs for not supporting their cause. He believes the other teams will come to regret their choices.

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Michael Jordan says he's 'open to a settlement'

In early September, Michael Jordan shared that he's willing to settle the case before trial. While his exact terms remain unclear, the lawsuit was originally launched to curb NASCAR's monopolistic practices and increase revenue share from the media rights deal.

“We’ve always been open to a settlement. Always have been. We’ve never taken that off the table,” Michael Jordan said via Racing news

23XI Racing's legal representative, Jeffery Kessler, has categorically stated that the team isn't against the charter system.

"My clients are not, and never have been, seeking to eliminate the charter system. They have supported charters because teams cannot survive without them. The declarations from team owners and executives acknowledge this same economic reality. ... NASCAR’S new motion changes nothing and we look forward to presenting our case at trial on December 1," he said via AP News.

Notably, the new charter agreement has an increased revenue split of 49 percent for the teams. The previous deal from 2016 to 2024 stood at 40 per cent. That said, NASCAR is also standing firm on its decision to go to trial.