23XI Racing, spearheaded by figures Denny Hamlin, Michael Jordan, and Curtis Polk, has taken a stand amidst the ongoing turmoil over NASCAR’s charter agreements. The team recently announced their decision to not sign the charter agreements for its two cars for the 2025-2031 period, challenging the parameters laid out by NASCAR and raising significant issues about fairness in the bargaining process.
In their statement, 23XI Racing declared:
“23XI decided to not meet a NASCAR-imposed deadline last night to sign Charter agreements 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.
“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.”
This comes after AP News reporter Jenna Fryer shared on social media that, according to multiple team representatives, there have been allegations of “coercive and threatening” actions by NASCAR officials to force teams into signing the charters.
23XI Racing, along with Front Row Motorsports, continue to resist signing the agreements. Both teams have revealed their concerns and are seeking constructive discussions with NASCAR to address these issues.
The current controversy is surrounding long-standing criticism of NASCAR’s charter system, introduced in 2016. Intended to provide financial stability and investment security for teams, the system has been slammed by concerns over its temporary nature and skewed revenue distribution. Critically, only 25% of the revenues from media rights go to teams, with 65% funnelled to tracks, and 10% retained by NASCAR, leading to a cycle where teams often face financial losses each year.
Looking forward, the new media rights deal valued at $7.7 billion and spanning 2025-2031, involving partnerships with FOX Sports, NBC, Warner Bros. Discovery, and Amazon, promised potential financial relief. However, the coercive practices reported during charter signings have cast a shadow over what should have been a beacon of hope for struggling teams.
The broader implications of this ongoing standoff between teams and NASCAR can’t be overstated. With 23XI Racing and Front Row Motorsports holding firm on their stance, the urgency to resolve these disputes continues to heighten, especially with the critical 10-race playoffs approaching.
The post 23XI Racing Releases Statement As NASCAR Charter Agreement Controversy Continues appeared first on Newsweek.
