23XI Racing, the NASCAR team co-owned by Michael Jordan, recently disclosed that it did not meet a deadline to sign a new charter agreement with the sanctioning body because the team felt they were not given a fair opportunity to negotiate the contract. The team, comprised of owners Jordan, active driver Denny Hamlin, and Curtis Polk, announced that they chose not to sign the extension, which was due by Friday night and would cover the period from 2025 to 2031.
According to sources familiar with the situation, most Cup Series teams have already signed the new agreements, but 23XI Racing decided to withhold their signature. The team’s decision was based on feeling “threatened and coerced” by NASCAR during negotiations, as per three individuals who spoke anonymously to avoid jeopardizing their agreements.
In a statement released on Saturday, 23XI Racing expressed their willingness to engage in constructive discussions with NASCAR to address their concerns and find a mutually beneficial resolution while supporting the sport they are passionate about. The start of NASCAR’s playoffs at Atlanta Motor Speedway is around the corner.
Charters play a crucial role in NASCAR, as they guarantee 36 cars entry to all 38 races each season in the Cup Series and provide teams with a share of television packages and purses based on charter value. Currently, there are 36 charters allocated for a 40-car field on a weekly basis.
Negotiations regarding charters have been ongoing for over two years, with teams pushing for increased revenue share, a voice in negotiations, and permanent charter status for guaranteed race entry and purse distribution. However, NASCAR has been resistant to making charters permanent.
Recent disputes have also involved clauses like an anti-disparagement provision in NASCAR’s most recent proposal. The teams are looking to NASCAR to finalize a new media package to have clarity on future income before committing to long-term agreements.