NASCAR Teams Win Big with New Revenue and the Return of the Five-Strike Rule

After months of legal mudslinging that felt more like a reality TV show than professional sports governance, the dust has finally settled.

The antitrust lawsuit between NASCAR and two of its most defiant teams—23XI Racing (co-owned by His Airness Michael Jordan and Denny Hamlin) and Front Row Motorsports—is officially over. Most importantly, it appears that the NASCAR teams actually scored some significant points.

If you’ve been following this drama, you know it’s been a headache. We faced lawsuits, threats of charter revocation, and numerous passive-aggressive comments that would fill a burn book.

But now that the ink is dry on the settlement, we can finally look at what this actually means for the sport. Spoiler alert: the teams didn’t walk away empty-handed.

1. The Return of the Five-Strike Rule (Rebranded and Ready)

Remember the “three-strike rule”? It was that controversial clause that basically allowed teams to lose their charters if they annoyed the governing body too much. Specifically, it was a means for NASCAR to maintain control over teams regarding new regulations. It almost killed the Charlotte Roval race a few years back when teams threatened to strike. Well, it’s back, but it’s got a new paint job. It’s now the five-strike rule. According to Jordan Bianchi and Jeff Gluck from The Teardown podcast, this is a governance win for the teams. Instead of just three strikes before they can pack up and leave to race elsewhere (or lose their standing), they now have more breathing room to voice dissent. It gives the teams a seat at the table without the immediate fear of the executioner’s axe swinging down if they complain about a new lug nut rule. It’s not total autonomy, but in a sport run like a dictatorship for decades, a slightly more benevolent monarchy is a step up.

2. Show Me The Money: Revenue Streams Unlocked

This is the part that likely made Michael Jordan smile. For the longest time, teams were shut out of the lucrative international media rights money. It was one of the most significant sticking points of the lawsuit. The settlement changes that. While we don’t know the exact dollar amount (because, of course, the financial terms are confidential), reports indicate that teams will now get a slice of that international pie. It might not be the entire bakery, but securing any percentage of international rights represents a significant shift from the “you get nothing” stance of the past. On top of that, teams are reportedly set to receive one-third of the revenue from NASCAR’s intellectual property. That is huge. It means that when the sport generates revenue from its brand, the teams that actually put the cars on the track receive a cut. Another major victory for 23XI and Front Row is the status of the charters. The 36 charters held by the 15 teams are now considered “evergreen.” This effectively makes them permanent franchises rather than temporary licenses that constantly need renegotiation. This provides stability. It means team owners can build long-term value in their organizations without worrying that their investment will turn to dust when the next TV deal negotiation rolls around. Bob Jenkins of Front Row Motorsports sounded genuinely relieved, noting that after 20 years, he finally has confidence in where the sport is headed.

3. Denny Hamlin’s “I Told You So” Moment

You have to give credit where it’s due. Denny Hamlin and Michael Jordan took a massive risk here. They were the only two organizations to hold out when everyone else folded and signed the 2025 deal under a ridiculous one-day deadline. They were stripped of their charters temporarily, sued the giant, and somehow emerged on the other side with a settlement that benefits everyone. Hamlin’s statement was poignant: “Standing up isn’t easy, but progress never comes from staying silent.” He’s right. It would have been easier to shut up and drive. But by dragging the dirty laundry into the courtroom—including exposing how drivers get fined for “detrimental conduct” just for having an opinion—he forced a change. Seeing Hamlin and NASCAR CEO Jim France embrace in court might have looked like a nice PR photo op, but make no mistake: that hug came after a brawl. So, 23XI and Front Row have their charters back (three each). The 2025 season will proceed without the cloud of litigation hanging over every race. However, the real changes take effect with the 2026 season. We’re looking at a NASCAR where teams have more money, more security, and a slightly louder voice. Will it fix everything? Probably not. The sport still has plenty of issues to iron out (looking at you, officiating consistency). But for the first time in a long time, it feels like the teams aren’t just employees; they’re actual partners. And hey, if nothing else, at least we don’t have to read any more legal briefs.

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