CHARLOTTE, N.C. — Featuring NASCAR, 23XI Racing and Front Row Motorsports settle an antitrust lawsuita new era will begin. It’s time for evergreen charters.
According to a joint press release from the parties involved in this matter, NASCAR will issue an amendment to the existing charter contract. This includes “a form of evergreen charters, subject to mutual agreement.” Once signed by the other charter holders, they will come into force.
What does this term mean? The statement does not provide exact details and the parties will endeavor to keep many details confidential as part of the settlement agreement. This includes finances.
However, the last nine days of trial provided a basis for what evergreen charters could be. Specifically, many team owners have used this term as an interchangeable term for “permanent”. Heather Gibbs, in particular, testified on this topic as the plaintiffs presented their arguments.
Based on Gibbs’ testimony and other evidence presented at trial, the evergreen charters would automatically renew. NASCAR could not remove them, provided the teams met a certain level of criteria. Gibbs, in particular, said teams wouldn’t be able to “start and park” and keep their charter. They should try to compete for victories and good results.
These witnesses also stated that permanent charters would not be tied to finances. They simply wanted these deals to be permanent and said they would be willing to renegotiate financial terms whenever NASCAR signed a new media rights deal.
Is this move to permanent charters accompanied by a salary increase? These details will remain unclear unless one of the parties involved discloses this information.
According to Jenna Fryer of the Associated Pressone source provided some details on the amended terms of the charter. This includes teams now receiving a share of international revenue for the first time, the return of the three-strikes rule to the five-strikes rule, teams receiving a third of revenues from IP uses and charter revenues which will need to be periodically negotiated under new media rights agreements.
These details are not yet official. Fryer reports the teams and NASCAR will have a call Thursday afternoon to work out details.
“My goal as a member of the teams’ negotiating committee was to help create a business model that would create a more sustainable model for the teams and create a more equitable and transparent system within NASCAR,” Curtis Polk, co-owner of 23XI Racing, said in a statement.
“This agreement makes significant progress toward the Four Pillars. The result brings NASCAR and licensed teams closer together and supports future growth and sustainability for all stakeholders and a better sport for fans.”
Several witnesses said making the charters permanent would cause the team’s values to skyrocket. Among them, Scott Prime, executive vice president and chief strategy officer of NASCAR, who said the value of charters could decrease more than 100 million dollars.
NASCAR Chairman Steve O’Donnell also acknowledged during his testimony that team values could increase with permanent charters.
It’s not yet clear if this will happen, but teams will be able to prepare for the 2026 season knowing that they have finally secured one of the four pillars of the 2025 charter agreement negotiations.
“I have been deeply concerned about the sport of NASCAR my entire life,” Denny Hamlin said in a press release. “Racing is all I have ever known, and this sport has shaped who I am. That’s why we were ready to take on the challenges that came with taking this stand. We believed it was worth fighting for a stronger, more sustainable future for everyone in the industry.
“Teams, drivers and partners will now have the stability and opportunities they deserve. Our commitment to fans and to the entire NASCAR community has never been stronger. I’m proud of what we’ve accomplished, and now it’s time to move forward together and build the stronger future this sport deserves.”
