23XI Racing paid way more than expected to secure a charter for their second car in 2022
Years ago, NASCAR introduced a charter system. It’s the auto racing’s take on franchising their teams.
36 charters were issued by NASCAR. No more will be created and they’re sold on the free market. Though, NASCAR reserves the right to reclaim a charter after three consecutive years of poor performance.
Not long ago, charters were sold for just $1,000,000. Those days are over.
With the Next Gen car coming in 2022, the cost of NASCAR ownership has decreased. Teams are only allowed 7 chassis’ per team. Additionally, the researched costs have been slashed as the car is a spec design.
In 2021, 23XI Racing joined NASCAR with ownership from Denny Hamlin and Michael Jordan. Bubba Wallace was signed as the sole driver of the No. 23 car.
Months ago, 23XI Racing announced they would expand to a two-car effort in the NASCAR Cup Series. Kurt Busch was signed to drive the No. 45 machine.
The team attempted to acquire several different charters. However, deals fell through due to high demand from multiple new NASCAR teams entering the sport.
In November, 23XI Racing finally acquired a charter for their second team. And they paid way more than they expected to get it.
23XI Racing paid StarCom Racing $13.5 million for a single charter. That sets a new bar for charter value.
Denny Hamlin comments on the NASCAR charter price
“All it did was tell me that my investment last year, of $4 million, was a good investment,” Hamlin told Bob Pockrass.
“Not ideal. But, if we plan on being in this sport for a long time, then we’re all placing a bet. Hopefully, our chips don’t get taken off the table.”
“I believe it’s reached a plateau because the people that have needed charters, no have them. Until there’s new people that want to come into this sport, I don’t know that there’s really any demand, at this point.”
The purchase of the StarCom Racing charter, included the charter and only the charter.
“I got a piece of paper that I got to sign. That’s essentially what I got for $13.5 million.”