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NASCAR insider speculates about potential legal battle between NASCAR, 23XI Racing

JHby:Jonathan Howard09/09/24

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Denny Hamlin Michael Jordan
Mandatory Credit: Peter Casey-USA TODAY Sports

This weekend the NASCAR world was thrown into a new round of charter drama as 23XI Racing refused to sign the latest agreement. Front Row Motorsports also joined the Michael Jordan-owned team in holding out while every other team reportedly signed.

23XI Racing believes that teams were forced into signing the agreement with false threats of having charters taken away by NASCAR. Teams were given the latest agreement on Friday night and given until midnight that night to sign.

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On The Teardown, NASCAR insiders Jeff Gluck and Jordan Bianchi broke down the situation. Gluck speculated on a potential legal battle between NASCAR and 23XI Racing.

“If they [23XI] think, ‘Hey, we can drag NASCAR into court and either get a settlement from this or get NASCAR to make the concessions we’ve been asking for, or take it all the way and change the model of the sport, essentially,'” Gluck explained. “Maybe that’s what they’re trying to do, and they feel like they’re trying to do it for the other teams as well.

It’s a very, you know, I didn’t think it would get to this point, but now for the first time I’m seeing, this could be a long, long protracted battle if this does not come to a head. Because it’s not like, I just always thought, ‘Okay December 31st, they have to do it because they’re not going to want to lose their charters, they’re not going to want to let all this stuff go.’ Maybe they’re willing to walk the plank and see what happens? I don’t know, is that possible?”

Things are heating up.

23XI Racing seems to be using the language of labor

Over the weekend, it was interesting to hear Curtis Polk, team co-owner at 23XI Racing, talk about this dispute. Clearly, Polk and his team have been speaking with lawyers. He had prepared statements and notes this week in Atlanta.

With ownership and executive experience in the NBA, Jordan and Polk know how other leagues operate. What was interesting was the language Polk used over the weekend.

He almost sounded like a member of the UAW speaking against corporate greed.

“The contract offer took away essential rights, and we believe that all teams, including those who signed, may not have been given a true opportunity to negotiate or fully understand the implications of the contract terms,” Polk explained, via Jenna Fryer of the AP.

Polk then went on to talk about the “predatory practices” of NASCAR. He said it wasn’t the “1960s” anymore. But this particular statement really drives home the posturing 23XI Racing is taking. They are at least hinting at legal action.

“NASCAR has consistently refused to deal with 23XI – these negotiations, we are David facing Goliath,” Polk said. “NASCAR has superior bargaining power and undue influence over the sport and the charter process.”

“Essential rights,” “opportunity to negotiate,” “predatory practices,” “superior bargaining power and undue influence.” These are not random words from the team co-owner. These are terms you use when debating the legalities of a contract or agreement.

So, where does this go from here? Right now, it feels like it is heading straight for a courtroom.