On Thursday, 23XI Racing and Front Row Motorsports announced their settlement with NASCAR following more than a year-long legal battle in a federal antitrust case that could’ve destroyed the sport. While financial details of the settlement aren’t disclosed, there is still more than enough information out there to determinw who came out ahead in this saga.
Let’s dive into the winners and losers from the settlement and legal battle between NASCAR, 23XI Racing and Front Row Motorsports.
Winner: The Lawyers
Billable hours remain undefeated. In this historic legal fight, 23XI Racing and Front Row Motorsports turned to renowned attorney Jeffrey Kessler to fight for them. Landing the top lawyer in terms of fighting for sports rights as an ardent defender of sports labor unions doesn’t come cheap. Wanting to stand a fighting chance in court, NASCAR hired Kessler’s courtroom rival, Chris Yates, to defend it in court. All of this comes at a cost. It’s been widely reported that the two sides spent more than $100 million over the course of the lead-up to the case being heard by jurors and the nine-day trial itself.
Loser: Jim France, NASCAR CEO
Testimony during the trial made one thing pretty clear. There were plenty of NASCAR executives who wanted the charter agreement to be more favorable to the teams, and that included a willingness to grant permanent charters. CEO Jim France, who inherited control of the sport following his father’s passing, was adamant about not letting that happen. France stood firm in his resolve, even amid push from his advisers that granting evergreen charters to teams would resolve a lot of problems. He refused, leading to this trial that cost NASCAR more than $100 million and resulted in testimony and a discovery process that did real damage between the France family, team owners, drivers and the fans. Ultimately, France’s stubbornness cost him far more in the long run.
Winner: Denny Hamlin Caps off Nearly Perfect Year
The trial itself went a lot like the NASCAR Championship Race at Phoenix, with Denny Hamlin’s team largely ‘dominating’ from start to finish. Only this time, there wasn’t a flat tire from William Byron to derail a victory. Hamlin became a co-owner of 23XI Racing because he wants to win in every way possible, and this antitrust suit against NASCAR was his effort to change the sport he loves for the better. Now, 23XI has three evergreen charters, and Hamlin’s team can bring on more investors while making a lot more money in the years to come. A championship trophy doesn’t come with this legal victory, but changing NASCAR for the better is an accomplishment that should be included in Hamlin’s Hall of Fame resume.
Loser: Riley Herbst, 23XI Racing Driver
If there’s a single ‘loser’ on the team and driver side from the NASCAR settlement, it might be Riley Herbst. Driving the No. 35 car full-time for 23XI Racing last season, he was a complete non-factor. Herbst recorded five DNFs and had just two laps led in 36 races, posting an average finishing position of 26.289 (second worst). The one thing he brought to 23XI, money, isn’t needed nearly as much anymore with the settlement going completely in their favor. Corey Heim is coming, and this ruling likely ensures that he’ll be replacing Herbst for the 2027 season.
Winner: Michael Jordan Creates a Multi-Sport Legacy
This doesn’t happen without Michael Jordan. Hendrick Motorsports and Team Penske wanted permanent charters and for the status quo in NASCAR to change, but they were never willing to take the necessary steps to do anything about it. Enter Jordan, who brought deep pockets that could rival NASCAR and a great understanding of how other pro sports work. Jordan wasn’t willing to settle for a charter agreement that was bad for the sport and worse for teams long-term, so he put his money where his mouth is. Jordan’s willingness to challenge the France family and come out victorious, changing the sport for the better, now gives him a legacy in NASCAR that will never be forgotten.
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Loser: Steve Phelps, NASCAR Commissioner
NASCAR needs a fall guy, and you can guarantee that no one in the France family will be willing to take the hit. That leaves commissioner Steve Phelps. NASCAR’s commissioner texted regarding Richard Childress in 2023 that he “needs to get taken out back and flogged. He’s a stupid redneck who owes his entire fortune to NASCAR” — a statement that did serious damage to the organization’s relationship with a legend. The trial also revealed that Phelps is making $2.5 million per season as commissioner, and he admitted his day-to-day duties haven’t changed much this season following the title change from NASCAR president to commissioner, despite a pay increase. A head needs to roll for this entire saga, and it feels safe to predict that Phelps is the one on the chopping block.
Winner: NASCAR’s Future
NASCAR is a monopoly that used its powers to extract every ounce of power it could to maximize its revenue while keeping as much of it as possible for the France family. Judge Kenneth D. Bell also made it clear that if the jury ruled in favor of 23XI and FRM, he would make the decision regarding what happened next. That very easily could have included upwards of $1 billion in monetary damages, charters themselves being ditched and NASCAR being forced to sell its tracks. If those tracks were sold, just to recoup losses, the France family might have sold the properties to organizations that would have torn the iconic tracks down and turned them into neighborhoods. The sport would never be the same.
Settling avoided all of that. NASCAR gets to remain a monopoly, but now the teams become closer to equal partners. That means they are just as invested in the sport’s long-term success and improving racing as NASCAR itself. Plus, there will be tens of millions of dollars coming in from new investors, which should lead to even better racing in the years to come.
