Michael Jordan's NASCAR team skips the deadline to sign a new revenue model with racing series

Updated Sep. 7, 2024 2:11 p.m. ET

Associated Press

HAMPTON, Ga. (AP) — 23XI Racing, the NASCAR team co-owned by Michael Jordan, said Saturday it skipped a deadline to sign a new charter agreement with the sanctioning body because “it did not have an opportunity to fairly bargain” for a new contract.

The two-car team owned by Jordan, active driver Denny Hamlin and Jordan right-hand man Curtis Polk revealed that teams had a Friday night NASCAR-imposed deadline to sign new charter agreements that run from 2025 through 2031.

In a letter to NASCAR, 23XI said its Toyota organization was refusing to sign the extension. The team's revelation came on the eve of the start of NASCAR's playoffs as garage speculation Saturday indicated that all but two Cup Series teams have signed the new agreements. The other team believed to be holding out is Ford-backed Front Row Motorsports, a midlevel program that lacks Jordan's clout.

Three people speaking to The Associated Press on condition of anonymity because of the sensitivity of the yearslong negotiations said the teams felt “threatened and coerced” by NASCAR to sign the extensions or risk them being revoked. They spoke on condition of anonymity to avoid putting their agreements as risk.

Just last week, Polk pinned a sheet of paper to the back of his shirt that read: “Please don’t ask me about my Charter. I don’t want to disparage NASCAR and lose it.” He wore it during the Southern 500 at Darlington Raceway, where 23XI Racing driver Tyler Reddick became the regular-season champion and the team said no one from NASCAR bothered to present him with the trophy.

“We notified NASCAR what issues needed to be addressed, in writing, at the deadline,” 23XI said in its Saturday statement. “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 playoffs begin Sunday at Atlanta Motor Speedway.

“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,” the team said Saturday.

What is a charter?

There are currently 36 charters in NASCAR for a 40-car field each week in the top-level Cup Series. A charter guarantees the 36 cars entry into all 38 races each season and a portion of the television package and purses depending on each team’s charter value.

Four charters remain held back by NASCAR, earmarked for a future manufacturer that might join Chevrolet, Ford or Toyota in the Cup Series. A summer proposal from NASCAR suggested those charters should go to NASCAR and that the France family that runs the series should be able to field teams.

NASCAR’s newest proposal to teams allegedly included an anti-disparagement clause.

The most recent charters were signed in 2016 and run through the end of the year, when the current television packages expire. Negotiations have been ongoing for more than two years, with teams content to allow NASCAR to finalize a new media package first so the teams have a clear idea how much money will be coming in.

Teams want a bigger share of the revenue pie, a seat at the negotiating table, a role in upcoming projects and deals and, most importantly, for charters to become permanent.

A charter guarantees a spot in any Cup Series race and thus part of the purse, and NASCAR has refused to even entertain that charters become permanent.

NASCAR had no immediate comment on the ongoing charter negotiations.

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