NASCAR’s bylaws negotiations with Cup Series teams continue to struggle.
According to several reportsMost teams have reached an agreement to extend the charter contract with the sanctioning body. However, both 23XI Racing and Front Row Motorsports have not signed. And, according to a statement from 23XI Racing, it does not appear that the team will sign in the near future.
“Last night, 23XI decided not to meet the NASCAR-imposed deadline to sign the 2025-2031 charter agreements for its two cars,” the team said in a statement. “23XI’s position, as outlined in a letter to NASCAR, is that we did not have the opportunity to fairly negotiate a new charter agreement.”
“We notified NASCAR, in writing and before the deadline, of what issues needed to be addressed. We are interested in engaging in constructive conversations with NASCAR to address these issues and move forward in a way that reaches a fair resolution, while strengthening the venue we all love.”
“At 23XI Racing, we remain committed to competing at the highest level while remaining steadfast in our belief that NASCAR must be governed by fair and equitable practices.”
23XI Racing is co-owned by veteran Cup Series driver Denny Hamlin and former NBA superstar Michael Jordan. The team has been active for just four seasons but has quickly become one of NASCAR’s most influential teams thanks to Hamlin’s outspokenness about the business of NASCAR, Jordan’s stature as one of the greatest icons in the history of the sport and Toyota’s backing of the team. 23XI’s Tyler Reddick won the regular-season points title this season and is a favorite to win the 2024 Cup Series title alongside Hamlin.
NASCAR’s current charter agreement expires at the end of the season and the governing body has been negotiating with teams for months about an extension. Thirty-six teams have 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 along with a starting spot in every race.
NASCAR teams have long called for a larger share of NASCAR’s television revenue. The TV deal, which will include Amazon and TNT beginning in 2025, is the primary source of revenue for NASCAR and its tracks. Teams would like a bigger slice of the TV pie so they don’t have to rely on a sponsor group that has shrunk in recent seasons as costs have risen for teams and viewership has declined significantly since NASCAR’s heyday in the 2000s.
It’s unclear what could or will happen with 23XI and Front Row, which are holding firm to the charter agreement. The teams have quietly said NASCAR’s offers worsened as negotiations dragged on, and Hamlin said this week that a recent proposal from the sanctioning body included an anti-disparagement clause.
Both 23XI Racing and Front Row have been considering adding a third car in 2025. Front Row has already announced its intentions to expand and a third 23XI Racing car has been an open secret. There are also rental cars on the market with the impending closure of Stewart-Haas Racing. The team has three rental cars for sale ahead of the 2025 season as it is downsized and rebranded as the Haas Factory Team.
