The ongoing conflict between 23XI Racing and the sport over its charter agreement has taken center stage in NASCAR as the Cup Series playoffs began last weekend. Front Row Motorsports, Michael Jordan, and Denny Hamlin’s team have all publicly questioned the new charter agreement and have not yet signed it.

Both 23XI Racing and NASCAR leadership are sticking to their guns, and the tension between them has reached a breaking point. In a recent episode of “The Teardown” podcast, Jordan Bianchi and Jeff Gluck of The Athletic delves deeply into this topic, with Bianchi illuminating the intricacies of this situation.

“Watching how this plays out is really fascinating,” Bianchi remarked. “Because there are two parties involved, and NASCAR has a long history of getting its way and managing the sport as it sees fit. The history is extensive, going all the way back to the year that NASCAR was established.

“Jim France is kind of carrying on the tradition of, ‘This is my sport,’ like this is how Bill France, or Bill Sr., is going to do it, and this is how Bill Jr. is going to do it. We will manage it as we see fit because it is a private company.”

The charter system itself is the root of the issue. The method incorporates financial incentives and is intended to give teams a more stable entry to races, hence giving them a more solid economic model. But it’s starting to become a source of disagreement.

Bianchi went on:

There are several benefits and drawbacks to this.

“I wish I knew the answer to this, as it’s not public information. The charter agreement states that, for example, if the contract expires on December 31, 2024, and the charter agreement is no longer in effect, it will be lost. They may simply let them pass away.”

In NASCAR, the probable departure of 23XI Racing would cause tremors. Supported by the legendary Michael Jordan, the team has brought in a large number of new sponsors, fans, and celebrities while also dramatically increasing the sport’s profile.