NASCAR Settles Antitrust Lawsuit After $1.06B Underpayment Reveal
As of December 12, 2025, NASCAR has settled the federal antitrust lawsuit filed by 23XI Racing and Front Row Motorsports on December 11, introducing permanent "evergreen" charters for all teams and returning charters to the plaintiffs with back pay for 2025. This resolution, reached on the trial's ninth day, addresses allegations of anticompetitive practices highlighted by economist testimony estimating $1.06 billion in underpayments to chartered teams from 2021 to 2024.
The settlement includes provisions for revenue sharing from international media rights and new intellectual property deals, enhancing team financial stability. Stakeholders can now focus on implementing these changes to foster industry growth.
Prior to the agreement, trial revelations detailed financial burdens on teams under NASCAR's model, which allocated only 25% of revenue compared to Formula 1's 45% benchmark.
"Chartered teams were underpaid $1.06 billion from 2021 to 2024."
(Reuters, December 9, 2025)
This shortfall formed the core of damage claims, illustrating systemic inequities.
What Fees Were Burdening NASCAR Teams?
Court documents exposed mandatory fees that compounded team operational strains, supporting antitrust arguments.
"Teams pay $168,357 annually for internet and data analytics services at tracks."
(Daily Downforce, December 3, 2025)
This cost enabled essential track communications but added significant overhead.
For 23XI Racing, annual fees neared seven figures, encompassing multiple categories.
"23XI Racing paid $994,569 in total fees to NASCAR in 2024, including $278,401 in entry fees and $299,905 for licensing."
(Daily Downforce, December 3, 2025)
Fines of $200,000 and other charges like $5,440 for drug testing further escalated expenses.
Next Gen car repair restrictions, due to IP controls, inflated costs by prohibiting in-house work.
"Front Row Motorsports incurred $4.7 million in repair costs from 2022 to 2024."
(Courthouse News, December 3, 2025)
These figures aligned with claims of unsustainable models, where high expenses outpaced revenue shares.
The proposed 2025 charter payout of $13 million per team fell below the $20 million sought, underscoring negotiation imbalances.
Expert analysis connected these fees to overall damages, using comparative benchmarks.
NASCAR countered by noting charter values rose from $1 million in 2016 to $50 million, though plaintiffs argued uneven gains.
How Did Damages and Testimonies Influence the Proceedings?
Pre-settlement estimates quantified potential liabilities, focusing on withheld revenues.
"NASCAR faced $215.8 million in damages to 23XI Racing and $148.9 million to Front Row Motorsports."
(AP News, December 9, 2025)
The combined $364.7 million derived from a 45% revenue share model, revealing the $1.06 billion gap.
Economist Edward Snyder disclosed NASCAR's $2.2 billion assets, $5 billion equity, and $250 million annual earnings from 2021-2024, with the France family receiving $400 million in distributions.
Front Row owner Bob Jenkins testified to no profits in over 20 years, with post-2016 charters exacerbating losses.
Jim France's December 10 testimony opposed permanent charters, a stance reversed in the settlement.
These disclosures linked costs to underpayments, corroborated by financial records.
Teams' non-signature of 2025 charters threatened participation, escalating pressures.
The proceedings impacted sponsorship perceptions, as fees reduced available funds for activations.
Consistent data across sources validated the cost-damage correlations.
Settlement Details: Evergreen Charters and Enhanced Team Protections
The December 11, 2025, settlement introduces key reforms, emphasizing permanence and shared revenues.
"Charters are now permanent ("evergreen") for all teams, with updates requiring mutual agreement and approval from all chartered teams."
(Jayski's NASCAR Silly Season Site, December 12, 2025)
This structure equates charters to franchises, with performance criteria potentially triggering forced sales if unmet, and NASCAR taking 10% of sales (up from 2%).
Plaintiffs receive immediate relief.
"23XI Racing and Front Row Motorsports regain their six charters and back pay as chartered teams for 2025."
(NASCAR.com, December 11, 2025)
Veto powers expand.
"Teams gain five strikes against NASCAR proposals imposing costs, up from three, with five strikes voiding exclusivity agreements."
(Motorsport.com, December 12, 2025)
Revenue enhancements include new streams.
"Teams will share revenue from NASCAR's international media rights for the first time."
(Fox Sports, December 11, 2025)
IP provisions benefit teams.
"Teams receive one-third of revenue from new deals involving their intellectual property."
(Jayski's NASCAR Silly Season Site, December 12, 2025)
Financial terms, including any monetary damages to plaintiffs, remain undisclosed, though back pay addresses 2025 operations.
A joint statement highlights commitment to growth.
The agreement averts further litigation, strengthens team influence, and refocuses on competition. Correlations with trial metrics suggest these changes could mitigate past underpayments, improving sponsor ROI and operational viability.
Evergreen charters may encourage investments, consistent with value appreciation. The resolution tackles monopsony issues, promoting innovation.
Industry observers see this as fan-positive, prioritizing racing as the 2026 season approaches.
So What?
Stakeholders in motorsports—team executives, sponsors, and series leaders—can draw from the NASCAR antitrust settlement's reforms, such as evergreen charters for all teams and back pay for 23XI/Front Row amid trial-exposed $1.06 billion underpayments, to restructure governance with five-strike vetoes and international revenue shares, while analyzing fees like $168,357 annual internet costs against $364.7 million damage estimates for cost optimization.
By integrating these provisions, including one-third IP deal revenues, decision-makers can enhance profitability through stable charters reducing risks, refine sponsorship strategies for better ROI via transparent finances, and deploy analytics to track trends in repairs ($4.7 million example) and entries ($994,569 total), ultimately advancing equitable growth and event efficiencies in the post-settlement era. Subscribe to Vantage Motorsports Event Analytics' free newsletter for comprehensive tools and insights to apply these developments effectively.
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Sources
- "Economist says NASCAR owes $364.7M to teams in antitrust case", AP News, December 9, 2025, https://apnews.com/article/nascar-lawsuit-antitrust-michael-jordan-29dd4c3022ea493a13ae120703004a59
- "Economist testifies that NASCAR underpaid teams $1.06B over 4 years", Reuters, December 9, 2025, https://www.reuters.com/sports/economist-testifies-that-nascar-underpaid-teams-106b-over-4-years--flm-2025-12-09/
- "Newly Released Docs Show Wild Price NASCAR Charges Teams for Internet and Data", Daily Downforce, December 3, 2025, https://dailydownforce.com/newly-released-docs-show-wild-price-nascar-charges-teams-for-internet-and-data/
- "Team owner suing NASCAR says he has never made a profit in decades of racing", Courthouse News, December 3, 2025, https://courthousenews.com/team-owner-suing-nascar-says-he-has-never-made-a-profit-in-decades-of-racing/
- "NASCAR CEO France takes the stand as plaintiffs’ final witness in antitrust case", RACER, December 10, 2025, https://racer.com/2025/12/10/nascar-ceo-france-takes-the-stand-as-plaintiffs-final-witness-in-antitrust-case
- "Jim France's Testimony Reveals Stubborn Stance on NASCAR Charters Amid Emotional Pleas", U.S. News & World Report, December 10, 2025, https://www.usnews.com/news/sports/articles/2025-12-10/jim-frances-testimony-reveals-stubborn-stance-on-nascar-charters-amid-emotional-pleas
- "Joint Statement from NASCAR, 23XI Racing, Front Row", NASCAR.com, December 11, 2025, https://www.nascar.com/news-media/2025/12/11/nascar-lawsuit-settlement-23xi-front-row/
- "What's in the lawsuit settlement?", Jayski's NASCAR Silly Season Site, December 12, 2025, https://www.jayski.com/2025/12/12/whats-in-the-lawsuit-settlement/
- "Michael Jordan's 23XI Racing Settles Lawsuit with NASCAR", Fox Sports, December 11, 2025, https://www.foxsports.com/stories/nascar/michael-jordans-23xi-lawsuit-nascar
- "NASCAR settles federal antitrust case filed by 2 teams", ESPN, December 11, 2025, https://www.espn.com/racing/nascar/story/_/id/47276734/nascar-settles-federal-antitrust-case-filed-2-teams
- "23XI, Front Row v NASCAR ends in settlement and focus on fans", Motorsport.com, December 12, 2025, https://www.motorsport.com/nascar-cup/news/23xi-front-row-v-nascar-ends-in-settlement-and-focus-on-fans/10784224/
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