Friday, 12 December 2025

Michael Jordan, Denny Hamlin bring NASCAR into next modern era with lawsuit settlement Featured

Posted On Friday, 12 December 2025 01:11 Written by
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Michael Jordan, co-owner of 23XI Racing, looks on from a 23XI Racing pit box prior to a NASCAR Cup Series race at Pocono. Michael Jordan, co-owner of 23XI Racing, looks on from a 23XI Racing pit box prior to a NASCAR Cup Series race at Pocono. Photo by James Gilbert/Getty Images
NASCAR and its fans have been on a collision course with uncertainty.

As we neared the end of the trial based on the lawsuit filed by 23XI Racing and Front Row Motorsports after refusing to sign the charter agreement, it was entirely possible that the future of how NASCAR was operated would be in the hands of a judge — and those running the sport weren’t going to like it one bit.

Jim France’s testimony was the harbinger of doom that seemingly lit a fire under both parties to get together and talk, and try to figure out a way to make concessions that made both sides happy enough to move forward with an agreement and end the court case.

And then, in just a couple hours on Thursday morning, lightning struck, and the teams and NASCAR came to an agreement. Judge Bell happily announced the settlement, hinting that it should have happened a long time ago, and the jurors were dismissed much to their delight.

After all the vitriol, the “redneck” jab from NASCAR brass, strong comments about Jim France from the 23XI camp, and a year-plus of turmoil, the teams ultimately got what they wanted — including evergreen charters and better overall terms — and the sport is better off for it long-term.

Standing up isn’t easy, but progress never comes from staying silent. The reward is in knowing you changed something,” Denny Hamlin posted on social media after the settlement.

From the beginning, this lawsuit was about progress. It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans,” 23XI co-owner Michael Jordan said. “With a foundation to build equity and invest in the future and a stronger voice in the decisions ahead, we now have the chance to grow together and make the sport even better for generations to come. I’m excited to watch our teams get back on the track and compete hard in 2026.”


Jordan remains in the sport

Many negative outcomes could have come from this for the NASCAR leadership team, including the judge asking them to sell tracks. This agreement appears to avoid all that.

Another negative outcome, had NASCAR won the case, would have been the possible departure of Michael Jordan (and the entire 23XI team) from the sport. That would have been bad on multiple levels, and alienated many fans. Having the world’s most famous and recognizable athlete as an owner in the sport is a tremendous positive, at a time when NASCAR really needs some positivity.

As we work in 2026 to figure out what the playoffs/postseason look like, or if there even is one, and how to improve racing at short tracks, road courses and superspeedways with the Next Gen cars, having a prominent team like 23XI disappear would have been a downer on any progress being made. Despite battling him in court for the past year, NASCAR should be happy that Jordan and his legal team helped made this deal happen, as his presence long-term can only be a good thing for NASCAR. Denny may be the NASCAR face of 23XI, this trial showed that Jordan is the business leader, and just like he reinvented the shoe deal with his Nike contract, he has helped to reinvent how NASCAR operated — an unlikely addition to his long sporting career.

A new era for NASCAR

I tried not to overanalyze the day-to-day minutiae of this trial, as it changed so quickly that I often couldn’t make heads of tails of the numbers being thrown out, but in layman’s terms, here’s what happened. NASCAR’s leaders — especially Jim France — were trying to operate the sport with an iron fist, like his father did and like they have done for the past 75 years, and in today’s world that’s not going to fly.

And who knows, maybe without Jordan coming on board and using his money and name to put up this fight, they could have done so for another 75 years. But now, despite the persistent denial by the France family over two years of negotiations, they finally had to relent and allow the teams to have “evergreen” charters, creating a sense of permanency. This was the inevitable move since the charters were first introduced, even in NASCAR didn’t see it that way. And I’m glad it has arrived. With this business out of the way, teams can return to the shop, sign the new deal, and get ready for what I hope will be an exciting and transformative year for the sport.


New leaders?

While I’m not crossing my fingers on this, it would be nice to see some change at the top. New blood is needed, and Jim France should read the tea leaves and retire. He’s obviously capable of doing so financially, and younger leaders like Ben Kennedy are capable of taking the reins at the top. 

Also, Steve Phelps was exposed during the discovery process as someone who probably shouldn’t be serving as commissioner of NASCAR. Even if he did apologize to Richard Childress about the “stupid redneck” crack, that type of mindset is not going to be respected by the teams or potential sponsors. Phelps would be wise to seek other employment before leadership has to make that decision for him. Steve O’Donnell may be the most likely to survive all this turmoil, but even he has some reputation management to take on once we return to the racetrack, and will need to rebuild trust in the garage.

A fresh start

What I love most about what happened with this settlement is that after a season that was full of hard feelings about so many things — the playoff format, the NextGen car itself, and of course this lawsuit — we’re in a place where both the teams and NASCAR have agreed on a path forward, and hopefully this shows that compromise can take place in the future if contracts need to be updated, and it doesn’t need to be so contentious.

Once all the checks are handed out to 23XI and Front Row Motorsports, their charters are restored for 2026 and all teams sign a new agreement, there will finally be a sense of positivity that I hope we can embrace as the new year dawns on our sport.

A great second act to follow this verdict would be to announce an updated playoff format that reverts to a 10-race Chase, or even a 36-race full season points battle. More practice time should be added to create more three-day weekends and enhance in-person experience. The qualifying format can be simplified from the mess that it is today. And so on, and so on.

Recognize what once made this sport so great, before the gimmicks took over, while also embracing some new events like the San Diego races in 2026. Strike that balance between keeping longtime fans while also embracing ways to find the next generation of fans (Hint: Get the kids to the track and they’ll be hooked for life; TV doesn’t do it justice).

I’m glad to write something positive, and I’m thankful for Michael Jordan, Curtis Polk, Denny Hamlin, Bob Jenkins, and their legal team for setting a new course for the sport that more fairly compensates teams and makes them feel welcome long-term.

And if NASCAR never sees the inside of a courtroom again, I’m OK with that. Because it’s now all about putting on the best racing product possible and growing the sport.

Follow AutoTechReviews on Instagram at @autotechreviews, and on Twitter @AutoTechReview. Follow Matt Myftiu on Twitter @MattMyftiu.

Matt M. Myftiu

Matt Myftiu has been a journalist for two decades with a focus on technology, NASCAR and autos.

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