23XI Racing refused to sign NASCAR’s charter agreement Friday night, a deal that would run through the 2031 season.
The organization, which is co-owned by Denny Hamlin and basketball legend Michael Jordan, is reportedly one of two teams holding out. According to published reports, Front Row Motorsports is the other, but the organization did not confirm.
23XI Racing released a statement Saturday.
“23XI decided to not meet a NASCAR-imposed deadline last night to sign charter agreements for its two cars for 2025-2031,” the statement read. “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 governed by fair and equitable practices.”
Hamlin hinted on his podcast, Actions Detrimental, that his race team would likely hold out, although all other indications pointed toward a majority of teams preparing to sign the agreement.
“One side will have to wake up and be reasonable. That’s all,” Hamlin said when asked about the agreement during Wednesday’s Cup Series playoff media day. “Everyone’s going to do what their own – what they want to do that’s best for their team and each one of the teams will execute an agreement that they feel is fair for themselves.
“I don’t love being the megaphone. I wish some of these other owners who are griping to me through text and calls would just do it publicly themselves, but I think that they fear pushback.
“We’re all trying to improve the sport and grow the sport. We all want what’s best for the sport. If the sport does great, we will do better, so I think we all just need to figure out how to lock arms and do it together. But we don’t have any agreement in front of us that is locking of arms, it’s all one sided.
“Fans do not come to see cars going around in circles. If they would, then we would sell out ARCA races, but they don’t. They come to sell out on Sunday to watch Chase Elliott and Kyle Larson and Kyle Busch. So, who provides them the cars? And that’s the teams. Who spends the money? That’s the teams. Whose sponsors go buy a suite? That’s the teams. Whose sponsors activate in their midways? That’s the teams. That’s the tough part that, they just don’t value us.”
Published reports, however, indicated that NASCAR has threatened to strip teams of their charters if they don’t sign the agreement. One of Hamlin’s and Jordan’s partners, Curtis Polk, wore a sign at Darlington (S.C.) Raceway that read, “Please don’t ask me about my charter. I don’t want to disparage NASCAR and lose it.”
NASCAR’s charter deal runs concurrently with the television rights agreement, which was set to expire after the 2024 season. Last off-season, NASCAR announced a renewal of the deal through 2031, which adds The CW Network, Prime Video and Warner Bros. (Turner Sports).
While charters guarantee each of the 36 entries into all 38 races, the agreement primarily involves the revenue split between the sanctioning body and the teams from the TV deal.
Brad Keselowski, co-owner of RFK Racing, confirmed to reporters Saturday at Atlanta Motor Speedway that his organization signed the agreement.
Potential repercussions of failing to sign the agreement are unknown. 23XI and Front Row each have two charters with Front Row buying a third from Stewart-Haas Racing for the 2025 season.