23XI Racing, figures led by Denny Hamlin, Michael Jordanand Curtis Polk, have taken a stand amid ongoing turmoil over NASCAR’s charter contracts. The team recently announced its decision not to sign charter agreements for two of its cars for the 2025-2031 period, challenging the parameters set by NASCAR and raising important issues of fairness in the bargaining process.
In their statement, 23XI Racing revealed:
“23XI decided not to meet the NASCAR-imposed deadline last night to sign charter agreements for its two cars for 2025-2031. 23XI’s position, as stated in the letter to NASCAR, is that we have not had an opportunity to reasonably bargain for a new charter agreement.
“We have notified NASCAR of the issues that need to be addressed, in writing, on the deadline. We are interested in engaging in constructive discussions with NASCAR to resolve these issues and move toward a fair resolution while strengthening the sport we all love.
“At 23XI Racing, we remain committed to competing at the highest level while remaining steadfast in our belief that NASCAR should be governed by fair and equitable practices.”
This comes after AP News reporter Jenna Fryer There have been allegations of “coercive and threatening” actions by NASCAR officials to force teams to sign the charter, according to multiple team representatives shared on social media.
23XI Racing, along with Front Row Motorsports, continues to resist signing contracts. Both teams have made their concerns known and want to have constructive discussions with NASCAR to resolve these issues.
The current controversy surrounds long-standing criticism of NASCAR’s charter system, introduced in 2016. Intended to provide financial stability and investment protection for teams, the system has been criticized by concerns over its temporary nature and erratic revenue distribution. Critically, only 25% of revenue from media rights goes to the teams, with 65% funneled to the track, and 10% retained by NASCAR, leading to a cycle where teams face financial losses every year. .
Looking ahead, a new media rights deal worth $7.7 billion and spanning 2025-2031, including a partnership with FOX Sports, NBCWarner Bros. Discovery, and AmazonPromised possible financial relief. However, the coercive practices reported during the charter signing have overshadowed what should have been a ray of hope for the struggling teams.
The wider implications of this ongoing impasse between the teams and NASCAR cannot be overstated. With 23XI Racing and Front Row Motorsports standing firm on their stance, the urgency to resolve these disputes continues to grow, especially as the crucial 10-race playoffs approach.
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