23XI, FRM both holding out on new NASCAR charter agreements
09/07/2024 02:53 PM
23XI Racing released a statement Saturday saying it has not signed the new charter agreement with NASCAR and feels issues still need to be addressed.
The statement, which was released via social media, read:
"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."
NASCAR imposed a midnight Friday deadline. 23XI Racing and Front Row Motorsports are reported to be the only two organizations, of 15 with charters, who have not signed the agreement.
The current charter agreement, which went through an extension in 2020, ends after this season. It was aligned with the same year NASCAR would work through its next media rights deal. NASCAR and its teams have been going and forth on a new seven-year proposal for a charter agreement that would go through the 2031 season.
NASCAR introduced charters in 2016. All full-time teams, 36 (from 15 organizations), have a charter that guarantees them entry into each Cup Series race. The value of the charter is tied to a guaranteed base of the purse money from each event and its performance.
Denny Hamlin, co-owner of 23XI Racing, has been the most outspoken about a new agreement and the rejected proposals from NASCAR. Among the sticking points for the race teams is making the charters permanent and teams receiving more financially from the revenue within the industry.
During NASCAR playoff media day earlier this week, Hamlin said that the charter conversation between the teams and NASCAR had gone "stagnant," and despite what others might be saying about a deal being close, was adamant things were continuing to go in the wrong direction.
"One side will have to wake up and be reasonable," Hamlin said of a deal being finalized.
23XI Racing fields two full-time entries for Bubba Wallace and Tyler Reddick. There has been conversation around expanding to a third car next season. Front Row Motorsports already announced plans to expand to three charter entries next season.
"I believe I am from our standpoint, but it depends on who you ask," Hamlin said. "There's probably a handful of teams that are just happy to take any deal that they can get and there's others with some business sense that says this is unreasonable."
Hamlin did not have anything to add about the matter Saturday at Atlanta Motor Speedway, referring to the statement released. NASCAR also has no comment on the matter.
