“Today’s a good day,” Michael Jordan said as he sat in the front row of the court awaiting the official announcement. As the unbreakable competitor from his Bulls days, Michael Jordan stood firmly outside the federal courthouse in Charlotte on the 11th of December 2025, accompanied by Denny Hamlin and Bob Jenkins of Front Row as the trial’s ninth day came to its screeching halt.

Back in 2024, Jordan’s 23XI Racing had drawn a line in the sand against what they called lopsided charter terms, sparking this courtroom showdown that laid bare the France family’s iron grip versus team pushback.

With 2026 looming, NASCAR’s power structure has been turned upside down. Let’s dive in to know and understand what’s coming up…

Guaranteed charters turn the monetary game around

The lawsuit dust has settled; Denny has embraced Jim France, the teams have charters, and the disorder is now somewhat calmed. For sure, in some sense, 23XI Racing and Front Row Motorsports came out smelling like victory out of the court.

They were looking strong in the trial already, but the main concern was if NASCAR would prolong the issue with appeals and keep them charter-less.

The settlement, which wipes out that concern, returns to them their places, and the rumor has it that they also received a huge financial payment on top of the new charter changes that guarantee race participation and a good cut of the base revenue for each team.

Jim France issued the statement, “This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans, which has always been our highest priority since the sport was founded in 1948.”

For 23XI and Front Row, it signifies the reclaiming of their six charters at the start of 2026, plus a secret payout to make up for the tough 2025 period of being non-chartered “open” teams, during which the trial had economists estimating damages of over $300 million.

The other teams that did not file lawsuits are winning as well. They are receiving charters that are permanent, and in addition to that, an international media share and cash through their team’s branding and IP licensing.

To top it all, they negotiated a ‘strike rule’ that will permit up to five strikes in the last six years of the agreement.

If NASCAR were to implement changes that push a $500k or more per car cost on teams without their consent, that would be a strike. Five of these would mean that the exclusivity term of the charter agreement is extended.

NASCAR today, regarding the permanent evergreen charters, it has formed a kind of collective bargaining situation like in the NFL or NBA.

There is a stipulation at the end of each charter term that the money must be approved by two-thirds of the teams; otherwise, it does not happen. One could say that a time frame of about a year has been given to the owner in question to sell the charter to a buyer who is ready to cooperate.

NASCAR evens the odds by increasing its share of charter transactions from the previous 2% to 10%, a clever long-term strategy to recover as the worth of teams climbs to nine figures.

Jordan hit the nail on the head outside the court, saying, “Today’s a good day. I’m thrilled that we are moving forward together rather than apart. For the sport to expand, we need to find a collaborative approach between the two sides.”

His lawyer, Jeffrey Kessler, kept it real: “This was never solely focused on 23XI or Front Row. It was about striving for a solution that benefits everyone involved.”

In a sport that is already over $2 billion yearly, this gives the teams real power to stay against cost hikes for parts, talent, and travel, which get bigger and bigger. But this is not yet the end. Here is more…

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What is the future of Richard Childress’s testimony and Johnny Morris’s relationship with the settlement talks?

Richard Childress’s testimony will undoubtedly lead to questions about the situation’s immediate aftermath. He has two potential legal avenues to follow: the texts of NASCAR President Steve Phelps, who referred to Childress as an “idiot” and “a–clown” and thinks he should be “taken out back and flogged,” provide rather narrow bases for the lawsuit unless they are connected to certain biases in officiating, and the disclosure of sensitive details about the sale of RCR in a pitch by Bobby Hillin Jr.

Speaking to NASCAR lawyers could breach nondisclosure agreements, making Hillin liable and staining NASCAR’s reputation. Bass Pro Shops founder Johnny Morris, who has been a sponsor of Richard Childress Racing for a long time, wrote a letter on Wednesday night, which was very direct, and criticized NASCAR leadership and called for a settlement.

“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 a compromise,” he stated.

He also added, “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.”

It is not certain if this was the direct cause of the settlement, but it definitely affected the image of NASCAR with teams and the public negatively, thus increasing the perception of mismanaged frustrations and breaches of confidentiality.

The “silly season” has already started, as the driver contracts of 2026 are not yet finalized, and the revenue stability has not been secured.

The value of the teams has also increased due to the evergreen charters, which means that the likes of Hendrick Motorsports and Team Penske can easily get the best drivers, while the proceeds from the sale of the charters further expand media by NASCAR.

What drove the settlement and can NASCAR heal?

NASCAR had no other option but to go for a settlement as they were facing an uphill battle in the courtroom. The top management appeared to be overly defensive and non-cooperative when asked questions.

Besides, the documents revealed that the decisions were made under the influence of the threat of other series being launched, a point of weakness that the jurors might have considered more than the intricacies of the law.

Their frequent “lack of memory” replies gave rise to more doubts about the motives behind the scenes, thus making it a tough task to mount a full defense.  The testimonies of the likes of Rick Hendrick and Roger Penske, who were to appear as the witnesses for NASCAR, were a hindrance.

The plaintiffs had already used their letters to Jim France, urging permanent charters. During the joint statement, it was said that “a stable environment conducive to meaningful growth,” however, Phelps is under increasing criticism from the garage area.

The new agreements are being finalized by the teams, the attention is on the racetrack, and Jordan’s determination indicates that the owners are going to be tough in the next negotiations.