Report indicates points of concern for NASCAR teams with new charter contract

All but two teams have reportedly signed a new charter agreement with NASCAR, but what does that mean for those teams? We know that 23XI Racing and Front Row Motorsports are holding out, but what did those other teams agree to?

While we don’t know the exact details, there are rumblings about the issues teams like 23XI and FRM have with the new charter agreement. It is likely those same concerns that have kept these two teams from signing with the rest.

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Adam Stern of Sports Business Journal has reported, in more detail, the main issues the teams have with the charter agreement.

“Concerns that some teams have had with the fresh charter contract include whether they will be limited in having a say over costly rule changes and whether there’s new clauses that’ll impact their traditional relationships with drivers [and] ownership of their intellectual property,” Stern wrote on X.com, formerly known as Twitter.

Denny Hamlin has talked about being treated as an equal partner. He doesn’t believe that NASCAR leadership sees the charter holders as equals. Teams at times compete for sponsors with the sanctioning body. Oftentimes, teams are left out of marketing deals.

When you start talking about intellectual property rights, that is another can of worms. Those clauses that would “impact their traditional relationships with drivers” are things like driver incentive programs. Owners worry this encourages drivers to pick a NASCAR event over one for their own race team.

It feels like the NASCAR charter negotiations have gotten out of hand. Officials wanted this to be done before the Daytona 500. We’re now in Week 2 of the playoffs and there are still teams holding out.

Is 23XI going to take NASCAR to court over charters?

There is a very real possibility that this situation ends up being a legal battle. Let’s not forget that teams hired Jeffrey Kessler earlier this year. Kessler is the antitrust attorney at the heart of the NCAA NIL changes that have swept college athletics in the last year.

Yes, most teams have agreed to sign the charter deal. That is fine and dandy. 23XI Racing and Front Row Motorsports are saying that they were not treated fairly. They are also saying the teams that did sign did it under coercion, threat of having their charters taken away.

I’m not sure anyone thought it was going to end up going this way. But Michael Jordan and his 23XI team are standing firm. They want to get the best deal possible and keep their relationship going with NASCAR.

The NASCAR charter negotiations have entered a new phase. Will we see a threat of legal action taken against the sanctioning body? Perhaps an antitrust lawsuit? Right now, we are heading in that direction, but that doesn’t mean it is inevitable. Not yet.