Basketball legend Michael Jordan, who co-owns 23XI Racing, has expressed his dissatisfaction with NASCAR’s proposed charter agreement and has refused to sign the documents that have been approved by other teams.
Jordan, who has recently become more involved in the business side of NASCAR, released a statement on Saturday outlining his team’s position regarding the proposed charter agreement.
In our written communication with NASCAR, we have clearly stated the issues that need to be addressed. We are keen on engaging in constructive discussions with NASCAR to resolve these issues and move forward in a manner that leads to a fair resolution while also strengthening the sport we all hold dear.
The NASCAR Cup features 36 charter teams, which can be seen as the franchise system of the sport. These charters guarantee the teams a starting spot in all 36-point races. Moreover, the charter provides the teams with payments based on their race entry, performance, and final standings.
Charter teams are required to meet a minimum performance standard, and NASCAR holds the right to revoke a charter if a team finishes in the bottom three of the standings for three consecutive years.
The current charter agreement is set to expire after this NASCAR season, and negotiations have been ongoing for the past two years.
The NASCAR teams are seeking a larger share of the revenue and more influence in shaping potential rule changes. One contentious issue revolves around a new non-disparagement clause that has been included in recent drafts of the proposal. Additionally, some teams are pushing for better intellectual property rights.
Front Row Motorsports, along with Jordan’s 23XI Racing, has also not signed the agreement that extends from 2025 through 2031.
“I honestly don’t understand what the motives are because we felt like we could grow this sport together. When you look at it, 23XI and Front Row Motorsports are probably two of the more eager teams in the garage, wanting to expand, buy another charter, and contribute to the sport’s growth,” said Jordan.
We are fully committed to being part of the sport in every way. However, we need a contract that serves the best interests of all parties involved. It is essential for the sport to thrive, and we must find a way to make it bigger rather than keeping it stagnant and leaving the teams powerless.
Michael Jordan co-owns 23XI Racing with Joe Gibbs Racing driver and three-time Daytona 500 winner Denny Hamlin.
Few professional athletes in the United States have achieved the level of success that Jordan has. He has taken a more active role in his racing team over the past few seasons.
Jordan achieved global fame by leading the Chicago Bulls to six NBA championships. With six Finals MVPs, five regular-season MVPs, and three All-Star MVPs, Jordan is the most decorated player in NBA history.
Furthermore, he is a four-time gold medalist at the 1983 Pan American Games, 1984 Summer Olympics, 1992 Tournament of the Americas, and 1992 Summer Olympics, never losing a game on the international stage.
23XI Racing is named after Jordan’s iconic No. 23 jersey, which he wore throughout most of his NBA career, and Hamlins No. 11, which he has driven with in the NASCAR Cup series throughout his entire career.
In its debut season in 2021, 23XI Racing celebrated Bubba Wallace’s first career win at Talladega Superspeedway. The team also secured three top-5 finishes and three top-10 finishes. In 2022, the team expanded to two cars, with Kurt Busch driving the No. 45 Toyota.
This year, Wallace continues to drive the No. 23 Toyota, while Tyler Reddick has taken the wheel of the No. 45. Reddick has clinched the 2024 NASCAR Cup Series Regular Season Championship and achieved victories at Talladega Superspeedway and Michigan International Speedway. With 11 top-5 finishes and 18 top-10 finishes after 26 races in 2024, Reddick leads the series in these categories.