Michael Jordan’s NASCAR Team Misses Deadline for Charter Agreement

23XI Racing, the NASCAR team co-owned by basketball legend Michael Jordan, has revealed that it missed a deadline to sign a new charter agreement with NASCAR. The team stated that it “did not have an opportunity to fairly bargain” for the contract, which is set to cover the years from 2025 through 2031.

The two-car team, co-owned by Jordan and active driver Denny Hamlin alongside Jordan’s close associate Curtis Polk, disclosed this information on the eve of the NASCAR playoffs. According to the team’s announcement, they were under pressure from NASCAR to sign the new agreements, which a deadline was imposed for Friday night.

In a letter submitted to NASCAR, 23XI expressed that their partner, Toyota, was not willing to sign the extension. Garage whispers suggest that nearly all Cup Series teams have already signed the new agreements, with the exception of 23XI and Ford-backed Front Row Motorsports, a mid-level team without the same influence as Jordan’s organization.

Three unnamed individuals informed The Associated Press that teams felt “threatened and coerced” into signing the extensions under duress, leading to concerns over the protection of their agreements. Such remarks were shared on the condition of anonymity due to the sensitive nature of the ongoing negotiations.

Last week, Polk famously attached a note to his shirt during the Southern 500 race at Darlington Raceway, stating: “Please don’t ask me about my Charter. I don’t want to disparage NASCAR and lose it.” This situation occurred as 23XI driver Tyler Reddick was crowned the regular-season champion, yet no representative from NASCAR was present to award him the trophy.

In their statement on Saturday, 23XI mentioned that they had formally communicated their concerns to NASCAR before the deadline. They expressed a desire to engage in constructive discussions with NASCAR to resolve these issues and to advance in a way that would promote fairness within the sport.

The NASCAR playoffs commenced on Sunday at the Atlanta Motor Speedway, with 23XI reaffirming its commitment to competing at a high level while advocating for fair and equitable governance within the organization.

Currently, there are 36 charters in NASCAR for a field that accommodates 40 cars every week in the top-tier Cup Series. These charters guarantee entry into all 38 races each season and allocate a share of the television revenue and purses based on each team’s charter value.

Four charters are still retained by NASCAR, which are intended for a new manufacturer that might join the ranks alongside Chevrolet, Ford, or Toyota in the Cup Series. Earlier this summer, a proposal surfaced from NASCAR about the distribution of these charters, suggesting they should revert to NASCAR, allowing the France family—who has been at the helm of NASCAR—to field teams.

NASCAR’s latest proposal reportedly included a controversial anti-disparagement clause that raised eyebrows among the teams.

The last round of charters was signed in 2016 and will expire at the end of this year, aligned with the conclusion of the current television contracts. Negotiations over the new agreements have been ongoing for more than two years, with teams preferring to wait for NASCAR to finalize a new media package; this would clarify anticipated revenue streams for the teams.

Teams are advocating for a larger share of the revenue, a seat at the negotiating table, involvement in future projects and deals, and, notably, the establishment of permanent charters.

Having a charter ensures a team a place in each Cup Series race, affecting their share of the prize money. However, NASCAR has consistently refused to consider the possibility of making charters permanent.

NASCAR has yet to provide a comment regarding the ongoing negotiations surrounding the charters.