What’s Happening?

NASCAR has reportedly distributed new Charter agreements to its race teams following its December antitrust settlement with teams 23XI Racing and Front Row Motorsports.

#NASCAR sent out new charter agreements to teams this week. Teams have 14 days to either sign or they can keep their current agreement.

— Jenna Fryer (@JennaFryer) January 22, 2026

Nearly 14 months after Team 23XI Racing and Front Row Motorsports first sued NASCAR on antitrust grounds, and after eight days of a grueling and heated trial, the two parties came to a breakthrough settlement.

As part of this settlement, the teams would receive several changes to NASCAR’s Charter Agreement that they had requested during initial negotiations of the 2025 NASCAR Charter Agreement during the 2024 season.

With these new amendments added to the Charter Agreement, NASCAR needed to re-issue new Charter Agreements to its charter owning teams to be signed ahead of the 2026 season. Per Jenna Fryer of AP Sports, NASCAR did so this week, giving teams two weeks to return them to NASCAR.

However, during these 14 days, the 16 teams that own the combined 36 charters will have to decide to sign the new deal or maintain the agreement signed in August 2024.

This means that, unlike the deadline to sign the 2025 NASCAR charter agreement, teams will not lose their charters by not signing the new agreement, though, with the new amendments, it would seem unlikely that the teams wouldn’t sign the new agreement.

What Teams Earned From 23XI and FRM’s Settlement

NASCAR introduced the charter system ahead of the 2016 season, giving entries that competed full-time in 2013, 2014, and 2015 a charter for free. Each charter grants a team a share of revenue and automatic entry into every NASCAR Cup Series points race.

As of the 2025 Agreement, a team can own up to three charters; however, two teams, Joe Gibbs Racing and Hendrick Motorsports, which owned four charters prior to the agreement, were grandfathered in.

Among other changes brought on by the settlement, the new Charter Agreement will feature one amendment highly requested by all teams throughout negotiations of the 2025 NASCAR charter agreement.

In 2026 onward, NASCAR Cup Series charters will be permanent or “Evergreen,” meaning NASCAR cannot cancel its charter system at the end of the agreement period.

Prior to the settlement, the structure of NASCAR’s charter system was different from that of other major sports leagues’ franchise system, as NASCAR had the right not to re-up the agreements should it choose so.

During the trial, the jury saw team owners often discussing the importance of evergreen charters, letters from other team owners practically begging NASCAR brass to give them evergreen charters, and even some NASCAR officials clarifying that they supported an evergreen charter amendment.

Not only does the evergreen amendment protect teams’ financial investments in buying these expensive charters, but the stipulation has also reportedly increased the overall value of these charters, something that could have both positive and negative effects for the sport’s highest level in years to come.

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