Denny Hamlin and Michael Jordan’s 23XI Racing one of two teams to not sign NASCAR’s new charter agreement

NASCAR’s charter negotiations with Cup Series teams continue to not go smoothly.

According to multiple reports, most teams have agreed to a deal to extend the charter agreement with the sanctioning body. However, both 23XI Racing and Front Row Motorsports haven’t signed. And based on a statement from 23XI Racing, the team doesn’t look like it will sign anytime soon.

23XI Racing is co-owned by longtime Cup Series driver Denny Hamlin and former NBA superstar Michael Jordan. The team has been around for just four seasons but has quickly become one of the most influential in NASCAR thanks to Hamlin’s outspokenness about the business of NASCAR, Jordan’s stature as one one the biggest icons in sports history and the team’s Toyota backing. 23XI’s Tyler Reddick won the regular-season points title this season and is a favorite to win the 2024 Cup Series title along with Hamlin.

The current NASCAR charter agreement expires at the end of the season and the sanctioning body has been negotiating with teams for months about an extension. Thirty-six teams hold charters under the current agreement and those charters are like franchises. They can be sold to other teams if a team downsizes or shuts down and all charter holders are guaranteed a bigger share of season-ending prize money along with a starting spot in every race.

NASCAR’s teams have long asked for a larger share of television revenue from NASCAR. The TV deal — which will include Amazon and TNT in 2025 and beyond — is the primary source of income for NASCAR and its tracks. Teams would like a bigger piece of the TV pie to not have to rely on a sponsor pool that has dwindled in recent seasons as costs have gone up for teams and viewing audiences have declined significantly from NASCAR’s 2000s heyday.

It’s unclear what could or will happen with 23XI and Front Row holding out on the charter agreement. Teams have said on background that NASCAR’s offers got worse the longer negotiations dragged on and Hamlin said this week that a recent proposal from the sanctioning body included an anti-disparagement clause.

Both 23XI Racing and Front Row have been eyeing adding third cars in 2025. Front Row has already announced its intentions to expand and a third 23XI Racing car has been an open secret. There are charters on the market too with the impending shutdown of Stewart-Haas Racing. The team has three charters up for sale ahead of the 2025 season as it will be downsized and rebranded into the Haas Factory Team.