Following 14 months of negotiations and legal battles, the NASCAR charter lawsuit has been settled, delivering a significant win for the teams. With 23XI Racing and FRM gaining momentum as the case neared trial, and Jim France’s testimony weakening NASCAR’s position, the sanctioning body had little choice but to settle. The final details are pending, but the outcome promises major shifts within the sport.
Massive Changes Coming to NASCAR As the Powerplay Shifts From One End to the Other
When the teams signed the 2025 charter agreement under a tight window, 23XI Racing and FRM were the only two to back out. They had had enough of NASCAR’s monopolistic practices and demanded change. Subsequently, they launched an all-out legal attack on the sport, which even led to them losing their charter status and having to run as open entries in the sport.
Through it all, the teams never backed down from the legal challenge, and as a result, they are now the primary reason behind massive changes coming to the NASCAR world.
Hosts of “The Teardown” Podcast, Jordan Bianchi and Jeff Gluck, recently sat down to discuss the immediate changes coming to NASCAR. The first of those changes will be the return of the ‘Strike Rule.’ Only this time, instead of it being the three-strike rule, it will be the five-strike rule.
“One of the pillars we’ve talked a lot about this in recent days is governance. The teams not only wanted to seat at the table, they want to have a vote, you know, and I’m hearing that it’s not the three- strike rule anymore, it’s the five strike rule.”
Under the three-strike rule, teams had the right to oppose new regulations. The last time teams attempted to use this right was when the Roval road course was introduced. Teams had already initiated strike one before NASCAR convinced them to let the race go on.
Had there been two more strikes, the Roval race would not have happened. In the 2025 agreement, the right to strike was revoked; however, that is no longer the case.
Another change coming to the sport is about the revenue distribution model. So far, teams have not gotten the money earned from the International Media Rights deals. But following the settlement, the teams will have a new stream of income, stemming from these deals.
“Teams do not get any of the international media rights money, none,” he continued, “I have been told that they are now going to get a piece of the international media rights deal. Don’t know what that number is, but they are going to get a slice of that, and it’s, you know, whatever they’re getting is more than they were getting before.”
While the specifics of these changes and many more are yet to be disclosed, insider Jenna Fryer revealed that a call was held on Thursday to discuss the new charter model.
Moreover, there will also be periodic negotiations around the charter revenue under the new media rights deal, as the Status Quo of NASCAR sees a significant shift in the sport’s history.