NASCAR teams score major wins as five-strike rule returns and new revenue streams unlocked

Hosts of The Teardown podcast, Jordan Bianchi and Jeff Gluck, broke down the terms of settlement between NASCAR and the teams. One of the positive amendments is the return of the five-strike rule, previously known as the three-strike rule, in addition to payouts from the international media rights deal.

The three-strike rule basically allowed teams to oppose new regulations. The last time it happened was for the introduction of the Charlotte Roval layout. While the teams initiated a strike, NASCAR managed to convince them otherwise, and the race was allowed to happen.

Had the teams gone ahead with two more strikes, the road course would've been removed from the calendar. The rule, however, was removed by NASCAR from the 2025 charter deal. Notably, the agreement was signed by the teams under a tight one-day deadline.

The antitrust settlement brings back the rule in a rebranded format.

"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," Bianchi said. "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."

Moreover, teams will now receive one-third of revenue from NASCAR's intellectual property. The charter revenue, meanwhile, will be perioudically negotiated as part of new media rights deals.

---

Denny Hamlin shares poignant message after landmark NASCAR settlement

When the teams signed the 2025 charter deal, 23XI Racing and Front Row Motorsports were the only organisations to back out. The two teams launched the antitrust lawsuit back in October, 2024, After temporarily losing their charters, 23XI and FRM are now back in contention for 2026.

Reflecting upon the whole ordeal, 23XI co-owner Denny Hamlin had this to say:

"Standing up isn't easy, but progress never comes from staying silent. The reward is in knowing you changed something"

The message drew praise from fans, who lauded his efforts to save the sport. Denny Hamlin was a prominent voice througout the trial proceeding, revealing aspects of NASCAR that weren't public knowledge. During his witness testimony, the 45-year-old shared how drivers attract penuishment whenever they express dissent.

Now that a positive agreement has been reached, Hamlin and NASCAR CEO Jim France were seen embracing each other in court. The resolution comes after scathing remarks were exchanged from both sides this past year.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

Edited by Vignesh Kanna