Michael Jordan’s NASCAR team misses deadline to sign new revenue model

HAMPTON, Ga. — The NASCAR team 23XI Racing, co-owned by Michael Jordan, announced on Saturday that it did not meet the deadline to sign a new charter agreement with NASCAR. The team stated that they did not have an opportunity to negotiate fairly for the new contract.

23XI Racing, which fields two cars under the ownership of Jordan, driver Denny Hamlin, and Curtis Polk, shared that they faced a deadline set by NASCAR on Friday evening to sign new charter agreements for the period from 2025 to 2031. Despite the looming deadline, the team chose not to sign the extension.

This development came just before the commencement of NASCAR’s playoffs, during a time when speculation in the garage indicated that nearly all Cup Series teams, with the exception of two, had signed the new agreements.

Confidential sources revealed that numerous teams felt “threatened and coerced” by NASCAR into signing the extensions, fearing potential revocation of the agreements if they resisted. These individuals opted to remain anonymous due to the sensitive nature of ongoing negotiations.

Recently, Polk drew attention at the Southern 500 held at Darlington Raceway by pinning a note to his shirt that read, “Please don’t ask me about my Charter. I don’t want to disparage NASCAR and lose it.” During this event, 23XI Racing driver Tyler Reddick celebrated becoming the regular-season champion, yet the team reported that no representatives from NASCAR presented him with the trophy.

In their statement released on Saturday, 23XI noted that they had communicated their concerns in writing to NASCAR before 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,” they stated.

The NASCAR playoffs are set to begin on Sunday at Atlanta Motor Speedway, leading to heightened tensions regarding the charter situation.

Currently, there are 36 charters in the NASCAR Cup Series, which accommodates a 40-car field each week. A charter guarantees entry for those 36 cars in all 38 races of the season, as well as a share of the television revenue and prize money based on the charter’s value.

NASCAR is holding back four charters, which are reserved for an anticipated future manufacturer that may join the existing lineup of Chevrolet, Ford, or Toyota. A proposal made by NASCAR during the summer suggested that these charters should remain under NASCAR’s control and that the family running the series should have the ability to establish teams.

On his weekly podcast, Hamlin mentioned that the latest proposal from NASCAR included an anti-disparagement clause, a move that has raised concerns among teams regarding their ability to discuss issues openly.

The most recent round of charters was signed in 2015 and are set to expire at the end of the year, coinciding with the conclusion of the current television contracts. Teams have been in discussions with NASCAR for over two years, waiting for clarity on a new media package that is expected to influence their revenue sharing.

Many teams are advocating for a greater portion of the revenue, a seat at the table for negotiations, and the establishment of permanent charters, which would ensure their participation in any Cup Series race, thus a share of the purse. However, NASCAR has consistently declined to consider the idea of making charters permanent.

As the playoffs loom, the ongoing negotiations and disputes regarding charters present a significant backdrop to an already competitive racing season.

Source: Associated Press