NASCAR Rules: Winners, Michael Jordan’s Losers and 23XI Racing’s Legal Battle Against NASCAR

On Thursday, 23XI Racing and Front Row Motorsports announced their agreement with NASCAR after more than a year of legal battle in a federal antitrust case that could have destroyed the sport. Although the financial details of the settlement are not disclosed, there is still enough information to determine who came out on top in this saga.

Let’s dive into the winners and losers of the settlement and legal battle between NASCAR, 23XI Racing and Front Row Motorsports.

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Winner: Lawyers

Billable hours remain undefeated. In this historic legal battle, 23XI Racing and Front Row Motorsports have turned to renowned attorney Jeffrey Kessler to fight for them. Landing the best lawyer in terms of fighting for sports rights as a staunch defender of sports unions is not cheap. Wanting a chance to fight in court, NASCAR hired Kessler’s rival, Chris Yates, to defend him in court. All this has a cost. It was widely reported that both sides spent more than $100 million in the period leading up to the case being heard by jurors and the nine days of the trial itself.

Loser: Jim France, CEO of NASCAR

The testimony during the trial made one thing pretty clear. Many NASCAR executives wanted the charter agreement to be more team-friendly, which included a desire to grant permanent charters. CEO Jim France, who inherited control of the sport after his father’s death, was keen to ensure that did not happen. France has remained firm in its resolve, despite pressure from its advisers that granting permanent charters to the teams would solve many problems. He refused, leading to this lawsuit that cost NASCAR more than $100 million and resulted in testimony and an interrogation process that did real damage between the France family, team owners, drivers and fans. Ultimately, France’s stubbornness cost it much more in the long run.

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Winner: Denny Hamlin completes a near-perfect year

The test itself played out much like the NASCAR championship race at Phoenix, with Denny Hamlin’s team largely “dominant” from start to finish. Only this time there was no William Byron puncture to derail a victory. Hamlin became part owner of 23XI Racing because he wants to win any way he can, 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 attract more investors while making a lot more money in the years to come. A championship trophy doesn’t come with that legal victory, but changing NASCAR for the better is an accomplishment that should be included on Hamlin’s Hall of Fame resume.

Loser: Riley Herbst, 23XI racing driver

If there is one “loser” on both the team and driver sides of the NASCAR rules, it could be Riley Herbst. Driving the No. 35 car full-time for 23XI Racing last season, he was absolutely a non-factor. Herbst recorded five retirements and led only two laps in 36 races, posting an average finishing position of 26.289 (second worst). The one thing he brought to 23XI, money, is no longer needed as much, with the settlement being entirely in their favor. Corey Heim is coming, and this move likely guarantees that he will replace Herbst for the 2027 season.

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Winner: Michael Jordan creates a multi-sport legacy

This wouldn’t happen without Michael Jordan. Hendrick Motorsports and Team Penske wanted permanent charters and the status quo in NASCAR to change, but they were never willing to take the necessary steps to change it. Enter Jordan, who brought deep pockets that could rival NASCAR and a great understanding of how other professional sports operate. Jordan wasn’t willing to settle for a charter deal that was bad for the sport and worse for the teams in the long run, so he put his money where his mouth was. Jordan’s willingness to challenge the France family and emerge victorious, changing the sport for the better, now gives him a legacy in NASCAR that will never be forgotten.

Related: Best NBA Players of All Time, Including Michael Jordan

Loser: Steve Phelps, NASCAR commissioner

NASCAR needs a scapegoat, 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 sent a text regarding Richard Childress in 2023 that he “needs to be retired and whipped. He’s a stupid redneck who owes his entire fortune to NASCAR” – a statement that seriously damaged the organization’s relationship with a legend. The lawsuit also revealed that Phelps earned $2.5 million per season as commissioner, and he admitted that his day-to-day duties did not change much this season after the title change from NASCAR president to commissioner, despite a pay increase. A head must roll during this entire saga, and it’s safe to predict that Phelps is the one on the chopping block.

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Winner: The Future of NASCAR

NASCAR is a monopoly that has used its powers to extract every ounce of energy possible to maximize revenue while keeping as much as possible for the France family. Judge Kenneth D. Bell also clarified that if the jury found in favor of 23XI and FRM, he would make the decision regarding the course of events. This could very easily have included over a billion dollars in monetary damages, with the charters themselves being abandoned and NASCAR being forced to sell its tracks. If these tracks had been sold, just to recoup losses, the France family might have sold the properties to organizations that would have demolished the iconic tracks and turned them into neighborhoods. Sport will never be the same again.

Settling down avoided all of that. NASCAR remains a monopoly, but now the teams are becoming equal partners. This means they are just as invested in the long-term success of the sport and improving racing as NASCAR itself. Additionally, tens of millions of dollars will be brought in by new investors, which should lead to even better racing in the years to come.

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