Talks have been ongoing for over a year now about the soon-to-be-expired current Charter agreement within NASCAR. That was until this past weekend at Atlanta Motor Speedway. Denny Hamlin and Michael Jordan’s 23XI Racing have been making noise in the series in 2024. The biggest noise was Tyler Reddick winning the regular season championship. Despite the on-track success, things aren’t looking great with the sport itself.
Hamlin himself has long been at the forefront of pushing for a new charter system. One that would allow the teams to make more of the profit for each of the teams during a season. The rest of the Cup owners and teams seemed to have been looking for a much similar idea. It appears things have taken a drastic turn. NASCAR gave each of the teams a sort of ultimatum, that they needed to have signed the new charter agreement by midnight last Friday. Those who didn’t could face the loss of their charters.
This past Saturday, news broke that all the teams but two had signed the new agreement. It certainly appears to have been rushed, and though this new charter system will be set from 2025 until 20231, some remain unhappy.
NASCAR Agrees to New Charter, But Not All Teams Are Happy
It quickly became clear which two organizations were the holdouts, from signing the new charter, as it was a major topic of discussion leading into this past weekend’s Atlanta race. Fox Sports’ Bob Pockrass was one of the first to address the possibility of who the holdouts were, and because 23XI and FRM have both been looking to add a third car next season, it was clear they were the two teams who held out.
From several team/industry sources, all but two team owners have signed the charter agreement. 23XI & Front Row (both two-car teams with plans/hopes to expand to three) apparently yet to sign. TBD what happens next if/when they sign/what would happen with those charters.
— Bob Pockrass (@bobpockrass) September 7, 2024
As Saturday rolled on, more and more speculation began sprinkling out, and 23XI Racing officially released a statement citing why they didn’t sign the new agreement.
” 23XI decided to not meet a NASCAR-imposed deadline last night to sign Charter agreement for its two cars for 2025-2031. 23XI’s position, as stated in a letter to NASCAR, is that we did not have an opportunity to fairly bargain for a new Charter contract. We notified NASCAR what issues needed to be addressed, in writing, at the deadline. We are interested in engaging in constructive discussions with NASCAR to address these issues and move forward in a way that comes to a fair resolution, while strengthening the sport we all love,” the statement said. ” At 23XI Racing, we remain committed to competing at the highest level while also standing firm in our belief that NASCAR should be governed by fair and equitable practices.”
Statement from 23XI ownership pic.twitter.com/z0z5rjRjEP
— 23XI Racing (@23XIRacing) September 7, 2024
They weren’t alone in not being in a situation, that would be beneficial for the continued success or growth of a race team as Bob Jenkins of Front Row Motorsports shared a similar sentiment as 23XI Racing, which is why they also withheld from signing.
NASCAR and 23XI Racing Have A Problem
After Reddick won the regular season at Darlington, not a single NASCAR rep was present during the trophy ceremony. That certainly seems like NASCAR and 23XI might have some problems. Now, with the team holding out on signing the new charter agreement, that may have made their mess bigger.
Hamlin was asked about where things stand on Saturday, and though he wouldn’t go into specifics about the charter disagreements. Hamlin did admit to Bob Pockrass, that until they can get a new agreement worked out, Bubba Wallace’s future could be fuzzy.
Denny Hamlin referred most questions to the team statement as far as 23XI Racing not signing the charter agreement. He said he’ll be able to keep focus. And he did acknowledge that not having a charter deal yet impacts things, such as finalizing a deal with Bubba Wallace. pic.twitter.com/Rqs6Dmokhb
— Bob Pockrass (@bobpockrass) September 7, 2024
It is certainly not a good place to be in, especially with how important the addition of Michael Jordan to the sport has been. The real question here is what is NASCAR going to do to the likes of 23XI or FRM?
Are they going to take away their charters, like they seemed to have threatened to do? You’re not just talking about teams here, you’re talking about the racing future of Wallace, Reddick, Noah Gragson, Todd Gilliland, and whoever else those teams are looking to sign for the future.
Is This Truelly Good For The Sport?
Is Hamlin a little too outspoken, sure, but this seems to be a bigger issue than just the charter system itself. NASCAR certainly appears to think they know all that is right for the teams that race in the sport. The teams and owners need to have a say about what is good for their team and their drivers.
Is this the right path for the sport to be going down? Making the team owners mad, and not giving them what they feel is right or what they deserve. They are spending a lot of money to do this on a weekly, monthly, and yearly basis. It only seems right that they earn something for all the work they put in.
It’s great to hear about progress on the new charter, but the sport deserves to have honest integrity. Perhaps a little more respect for everyone who has paid their dues to compete at the highest level in stock-car racing.
