(Photo credit: Alex Gould/The Republic / USA TODAY NETWORK)

NASCAR reached a confidential settlement agreement on Thursday with Front Row Motorsports and Michael Jordan's 23XI racing in a federal courtroom in Charlotte.

The two race teams filed an antitrust lawsuit against the motorsports organization in 2024, alleging monopolist practices and accusing NASCAR of using anti-competitive tactics to pressure teams into compliance.

The settlement came one day after the plaintiffs rested their case following eight days of testimony.

'NASCAR, 23XI Racing, and Front Row Motorsports are pleased to announce a mutually agreed-upon resolution that delivers long-term stability and creates the conditions for meaningful growth for all teams in a more competitive environment,' read a statement issued by the plaintiffs.

According to the statement from 23XI and FRM, the financial terms of the settlement are confidential and will not be released.

Jordan, the NBA legend and co-owner of 23XI Racing, also issued a statement.

'From the beginning, this lawsuit was about progress,' he said. 'It was about making sure our sport evolves in a way that supports everyone: teams, drivers, partners, employees, and fans. 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.'

NASCAR Cup Series driver and 23XI co-owner Denny Hamlin, after a long legal battle, said it was 'worth fighting for a stronger and more sustainable future for everyone in the industry.'

'Teams, drivers and partners will now have the stability and opportunity they deserve,' Hamlin said in a statement. 'Our commitment to the fans and to the entire NASCAR community has never been stronger. I'm proud of what we accomplished, and now it is time to move forward together and build the stronger future this sport deserves.'

Bob Jenkins, owner of Front Row Motorsports, said he was 'excited for the road ahead.'

'After more than 20 years in this sport, today gives me real confidence in where we're headed,' Jenkins said in a statement. 'I love this sport, and it was clear we needed a system that treated our teams, drivers, and sponsors fairly and kept the competition strong. With this change, we can finally build long-term value and have a real voice in NASCAR's future. I'm excited for the road ahead -- for the people in the garage, the folks in the stands, and everyone who loves this sport.'

The settlement process began first thing Thursday morning in the courtroom of U.S. District Judge Kenneth D. Bell, who called for a one-hour sidebar. After about 90 minutes of deliberations, plaintiffs' attorney Jeffrey Kessler returned to the courtroom to announce a settlement.

'I'm pleased to say that the parties have positively settled this matter in a way that will benefit the industry going forward,' Kessler said.

Bell thanked the jurors, telling them that sometimes parties in a trial need to see the evidence before realizing the wisdom of a settlement.

'I wish we could've done this a few months ago,' the judge said in court. 'I believe this is great for NASCAR. Great for the future of NASCAR. Great for the entity of NASCAR. Great for the teams and ultimately great for the fans.'

The flashpoint for the lawsuit was NASCAR's most recent charter agreement, which was handed to teams at the start of the 2024 playoffs with a firm signing deadline, following more than two years of fraught talks. Charters are the backbone of the Cup Series model as they guarantee entry into races and a predictable slice of revenue each week. 23XI and Front Row argued that the terms left them no viable choice. Both declined to sign, competing instead as unchartered teams with sharply reduced prize money. They argued that without a fair deal their operations could be forced out of business.

According to the plaintiffs' statement on Thursday, a condition of the settlement requires NASCAR to issue an amendment to existing charter holders 'detailing the updated terms for signature, which will include 'evergreen' charters, subject to mutual agreement.'

--Field Level Media