09/07/24 01:13:00
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09/07 13:11 CDT Michael Jordan's NASCAR team skips the deadline to sign a new
revenue model with racing series
Michael Jordan's NASCAR team skips the deadline to sign a new revenue model
with racing series
By JENNA FRYER
AP Auto Racing Writer
HAMPTON, Ga. (AP) --- 23XI Racing, the NASCAR team co-owned by Michael Jordan,
said Saturday it skipped a deadline to sign a new charter agreement with the
sanctioning body because "it did not have an opportunity to fairly bargain" for
a new contract.
The two-car team owned by Jordan, active driver Denny Hamlin and Jordan
right-hand man Curtis Polk revealed that teams had a Friday night
NASCAR-imposed deadline to sign new charter agreements that run from 2025
through 2031.
In a letter to NASCAR, 23XI said its Toyota organization was refusing to sign
the extension. The team's revelation came on the eve of the start of NASCAR's
playoffs as garage speculation Saturday indicated that all but two Cup Series
teams have signed the new agreements. The other team believed to be holding out
is Ford-backed Front Row Motorsports, a midlevel program that lacks Jordan's
clout.
Three people speaking to The Associated Press on condition of anonymity because
of the sensitivity of the yearslong negotiations said the teams felt
"threatened and coerced" by NASCAR to sign the extensions or risk them being
revoked. They spoke on condition of anonymity to avoid putting their agreements
as risk.
Just last week, Polk pinned a sheet of paper to the back of his shirt that
read: "Please don't ask me about my Charter. I don't want to disparage NASCAR
and lose it." He wore it during the Southern 500 at Darlington Raceway, where
23XI Racing driver Tyler Reddick became the regular-season champion and the
team said no one from NASCAR bothered to present him with the trophy.
"We notified NASCAR what issues needed to be addressed, in writing, at the
deadline," 23XI said in its Saturday statement. "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."
The playoffs begin Sunday at Atlanta Motor Speedway.
"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," the team said Saturday.
What is a charter?
There are currently 36 charters in NASCAR for a 40-car field each week in the
top-level Cup Series. A charter guarantees the 36 cars entry into all 38 races
each season and a portion of the television package and purses depending on
each team's charter value.
Four charters remain held back by NASCAR, earmarked for a future manufacturer
that might join Chevrolet, Ford or Toyota in the Cup Series. A summer proposal
from NASCAR suggested those charters should go to NASCAR and that the France
family that runs the series should be able to field teams.
NASCAR's newest proposal to teams allegedly included an anti-disparagement
clause.
The most recent charters were signed in 2016 and run through the end of the
year, when the current television packages expire. Negotiations have been
ongoing for more than two years, with teams content to allow NASCAR to finalize
a new media package first so the teams have a clear idea how much money will be
coming in.
Teams want a bigger share of the revenue pie, a seat at the negotiating table,
a role in upcoming projects and deals and, most importantly, for charters to
become permanent.
A charter guarantees a spot in any Cup Series race and thus part of the purse,
and NASCAR has refused to even entertain that charters become permanent.
NASCAR had no immediate comment on the ongoing charter negotiations.
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AP auto racing: https://apnews.com/hub/auto-racing
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