Insider shares potential NASCAR breakthrough plan to end 23XI-FRM lawsuit with permanent charter compromise

(L) 23XI Racing Co-owners Denny Hamlin and Michael Jordan; (R) NASCAR Commissioner Steve Phelps and President Steve O
(L) 23XI Racing Co-owners Denny Hamlin and Michael Jordan, (R) NASCAR Commissioner Steve Phelps and President Steve O'Donnell and (Inset) the NASCAR Cup Series Playoffs flag at Darlington Raceway. Source: Getty Images

NASCAR and two Cup Series teams, 23XI Racing and Front Row Motorsports, have resumed settlement talks in Charlotte, signaling possible progress toward ending their long-running antitrust lawsuit. The renewed mediation, held behind closed doors in the Western District of North Carolina, came just six weeks before the case was set to go to trial on December 1.

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The sides met on Tuesday before Judge Kenneth Bell, who has pushed both parties to find common ground before the sport’s postseason ends. Following the session, attorney Jeffrey Kessler, representing 23XI and FRM, told reporters:

"We've agreed to resume the discussions tomorrow, we've no other comments"
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Tuesday’s mediation was attended by top figures from both camps. On the team side, Michael Jordan, Denny Hamlin, and Curtis Polk of 23XI joined Kessler as they entered through the courthouse’s main doors shortly before 10 a.m. NASCAR’s delegation, including Chair and CEO Jim France, Vice Chair Lesa France Kennedy, and senior executives Steve Phelps, Steve O’Donnell, and Ben Kennedy, arrived separately.

While neither party commented in detail, they have publicly stated a willingness to settle. However, they remain far apart on the core issue of whether Cup Series teams should hold permanent charters guaranteeing their place in the field and a share of media revenue.

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The NASCAR on Prime Video broadcast is set at Nashville Superspeedway. Source: Getty
The NASCAR on Prime Video broadcast is set at Nashville Superspeedway. Source: Getty

While teams have long argued that stability is essential to attract sponsors, the governing body cannot commit to continuous payouts when the media rights vary in each cycle. The current seven-year deal, worth $7.7 billion, includes FOX (FS1), NBC (USA), Amazon (Prime Video), and Warner Bros. Discovery (TNT and Max) and runs through 2031.

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Recent reports by SBJ's Adam Stern suggested that a compromise could be on the cards. Permanent charter status for teams, but with revenue shares, can be revisited whenever new media contracts are signed. Such an arrangement would meet the teams’ call for long-term security while preserving NASCAR’s flexibility during future rights negotiations.

If the mediation fails by Thursday, a pretrial conference will be held, keeping the December 1 trial date in place.

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How NASCAR’s charter dispute reached this stage

Jim France (L) and Denny Hamlin during the 75 Greatest Drivers list selection. Source: Getty
Jim France (L) and Denny Hamlin during the 75 Greatest Drivers list selection. Source: Getty

The conflict began in October 2024 when 23XI Racing and Front Row Motorsports filed an antitrust lawsuit accusing NASCAR of monopolistic practices tied to its team charter system. The teams argued that NASCAR’s structure limited competition and gave the sanctioning body unchecked control over team participation and value.

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In the months that followed, the case produced a dense sequence of filings, injunctions, and appeals. Judge Kenneth Bell initially granted a temporary injunction allowing both teams to race as chartered entries in 2025. NASCAR countered with claims that 23XI and FRM had colluded during negotiations, while the teams accused the sanctioning body of using coercive tactics, including internal “Project Gold Codes” plans to replace dissenting teams with in-house operations.

The case intensified in September when the league filed for summary judgment, supported by leading team owners such as Roger Penske, Rick Hendrick, Richard Childress, and Joe Gibbs. They urged a settlement that would prevent further disruption of the sport.

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That perception now weighs heavily as both sides negotiate. The lawsuit has drawn public concern from other organizations, with several Cup teams releasing a joint statement calling for a resolution that preserves the charter system and avoids a drawn-out legal spectacle that could damage NASCAR’s reputation.

As 23XI and Front Row continue settlement discussions this week, the Cup Series heads to Martinsville Speedway this weekend for the Xfinity 500, the penultimate race that will set the Championship 4 before the season finale.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

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Edited by Hitesh Nigam
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