The NASCAR antitrust lawsuit has finally come to a mutual settlement after eight days of sparring. Both sides have made compromises, but there are some major developments benefiting the plaintiffs, permanent charters being one of them. Reports state that teams will now get “evergreen” or permanent charters. While we await more details, let’s look at what it entails.

Both 23XI and Front Row Motorsports will have their combined six charters, valued at a staggering $300 million in total ($45 million each as per the latest sale value), reinstated.

In fact, all 15 charter-holding garages will now have permanent charters, as opposed to them requiring renewal earlier. However, if a team is unable to fulfill its performance criteria, it will result in a forced sale of a charter.

That said, the revised agreement is currently under discussion with teams reportedly meeting on Thursday, as per The Athletic.

Notably, this comes over a year after Denny Hamlin, Michael Jordan and FRM owner Bob Jenkins refused to sign the charter agreement despite losing both racing spots and money. While other owners caved in, the two teams accused NASCAR of monopolistic practices, eventually filing an antitrust lawsuit against the stock car racing organization.

However, a preliminary injunction shortly after allowed them to race as chartered teams. Although it was later overturned, they were allowed to race as open teams for the remaining season. Thankfully, the landmark decision now changes things.

“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,” 23XI Racing co-owner Michael Jordan said in a statement after the settlement.

More changes are also expected for the three remaining pillars of the charter agreement: Revenue sharing, governance, and product development.

What happens with the 2025 season payouts and team revenue?

For starters, teams will now earn revenue from the international media rights deals for the first time and receive a third of revenue from the Intellectual Property.

What’s more, under the previous agreement that expired at the end of the 2024 season, teams were owed three “strikes” whenever they disliked one of NASCAR’s rules. The rule was removed from the 2025 agreement and will now be expanded to five strikes, as per reports.

Neither the plaintiffs nor the defendants have made a public revelation about the exact financial details. However, reports state that 23XI and Front Row will be paid monetary damages.

NASCAR, on the other hand, will reportedly be saving over $1 billion in damages by reaching a settlement. But the organization has some more benefits, too. They will reportedly receive anywhere between two to 10 percent from charter sales.

“This outcome gives all parties the flexibility and confidence to continue delivering unforgettable racing moments for our fans,” NASCAR  CEO Jim France said in a press release. “We worked closely with race teams to create the NASCAR charter system in 2016, and it has proven invaluable to their operations and to the quality of racing across the Cup Series. Today’s agreement reaffirms our commitment to preserving and enhancing that value, ensuring our fans continue to enjoy the very best of stock car racing for generations to come.”

Hopefully, that’s the case. Till then, keep your eyes on this space for more updates.