by NASCAR’s charter negotiations with Cup Series teams continue to be bumpy.
According to multiple reports, most teams have agreed to extend the deal with the sanctioning body. However, neither 23XI Racing nor Front Row Motorsports have signed. And according to a statement from 23XI Racing, the team doesn’t seem to be signing anytime soon.
“23XI has decided not to meet the deadline imposed by NASCAR last night to sign lease agreements for its two cars for 2025-2031,” the team said in a statement. “23XI’s position, as expressed in a letter to NASCAR, is that we have not had the opportunity to fairly negotiate a new lease agreement.”
“We have notified NASCAR of the issues to be resolved, in writing, prior to the deadline. We look forward to engaging in constructive discussions with NASCAR to resolve these issues and move forward in a manner that will help us reach a fair resolution while strengthening the sport we all love.”
“At 23XI Racing, we remain committed to competing at the highest level while maintaining our firm belief that NASCAR must be governed by fair and equitable practices.”
23XI Racing is co-owned by longtime Cup Series driver Denny Hamlin and former NBA superstar Michael Jordan. The team has only been around for four seasons, but has quickly become one of the most influential in NASCAR thanks to Hamlin’s outspoken attitude about the business of NASCAR, Jordan’s stature as one of the greatest icons in the sport’s history and Toyota’s support of the team. 23XI’s Tyler Reddick won the regular-season championship this season and is a favorite to win the 2024 Cup Series title with Hamlin.
NASCAR’s current charter agreement expires at the end of the season, and the sanctioning body has been negotiating with teams for months about an extension. Thirty-six teams hold charters under the current agreement, and those charters are like franchises. They can be sold to other teams if a team downsizes or closes, and all charter holders are guaranteed a larger share of the season-ending prize money as well as a starting spot in every race.
NASCAR teams have long been pushing for a bigger share of television revenue. The TV deal, which will include Amazon and TNT starting in 2025, is the primary source of revenue for NASCAR and its tracks. Teams would like a bigger piece of the TV pie so they don’t have to rely on a sponsorship pool that has shrunk in recent seasons as costs have risen for teams and viewership has declined significantly compared to NASCAR’s heyday in the 2000s.
It’s unclear what might happen if 23XI and Front Row refuse to sign the charter agreement. The teams have said behind the scenes that NASCAR’s offers have gotten worse as negotiations drag on, and Hamlin said this week that a recent proposal from the sanctioning body included an anti-disparagement clause.
23XI Racing and Front Row are considering adding a third car in 2025. Front Row has already announced its plans to expand and a third 23XI Racing car has yet to be revealed. Charters are also on the market with the impending closure of Stewart-Haas Racing. The team has three charters up for sale ahead of the 2025 season as it will be downsized and rebranded as the Haas Factory Team.
