23XI Racing issues statement after deciding not to meet a NASCAR-imposed deadline
Front Row Motorsports joined 23XI Racing in not signing the new agreement
Charters are NASCAR’s version of franchises. 36 were issued and the holders share a piece of the TV revenue and are guaranteed a starting spot in every points paying event.
For several years, NASCAR and their 36 charter teams have been in search of a new agreement. The current agreement is set to expire at the end of the 2024 season.
Teams have been calling for a larger portion of the TV revenue pie. Previously, tracks picked up 65%, teams 25% and NASCAR collected the remaining 10%.
Additionally, teams also wanted the charter system to be permanent. That’s to protect their hefty investments as a recent charter sale was estimated at $40M.
Beyond that, there was a list of other things teams were looking for in the new agreement. And for months, there’s been a back and forth between teams and the sanction regarding the terms of a new agreement.
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NASCAR issued a deadline for Friday night. They wanted the new charter deal to be signed by the teams before the playoffs begin this weekend at Atlanta Motor Speedway.
It appears that most teams have signed the new agreement. However, 23XI Racing has not signed.
23XI Racing statement
The team issued the following statement on Saturday:
“23XI decided to not meet a NASCAR-imposed deadline last night to sign Charter agreements for its two cars for 2025-2031,” the team opened.
“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.”
“At 23XI Racing, we remain committed to competing at the highest level while also standing firm in our belief that NASCAR should be govered by fair and equitable practices.”
23XI Racing is co-owned by Denny Hamlin and Michael Jordan. The team is fairly new after making their debut in 2021. They field two cars driven by Tyler Reddick and Bubba Wallace and they’re one of the teams looking to expand to a three-car operation.
Tyler Reddick, the driver of the No. 45 claimed the regular-season championship last week.
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