NASCAR set a deadline for teams to sign by last Friday night, resulting in 13 teams—leaving only two—agreeing to the new deal that extends through 2031. The two teams that opted out are 23XI Racing, owned by Michael Jordan, and Front Row Motorsports.
During a press conference to announce Kyle Larson's participation in the 2025 Indianapolis 500, Hendrick remarked that the extensive negotiations with NASCAR over charter extensions had been exhausting.
“We put in a lot of effort over the past two years, and it came down to the realization that not everyone would be satisfied. Ultimately, I was just tired,” Hendrick stated. “Not everyone was pleased, but in any negotiation, compromises are necessary. I believe it was a fair agreement that safeguarded the charters, which was our top priority. We secured a revenue increase, and I’m content with the concessions we achieved.”
Currently, there are 36 charters utilized by 15 teams, ensuring their participation in all major Cup Series races.
Throughout the negotiations, teams aimed for four key objectives: a larger revenue share, involvement in governance discussions, a portion of business deals that utilize team or driver likenesses, and, most critically, the permanence of charters to ensure stability.
NASCAR was resistant to the idea of making charters permanent, and the final offer presented last week did not include this provision. Additionally, the new agreement contains terms that would permit the France family, who owns the series, to hold charters and operate their own teams.
23XI Racing, co-owned by Jordan, Denny Hamlin, and Curtis Polk, took the lead in advocating for changes. In an unexpected turn, Bob Jenkins of the smaller Front Row Motorsports team joined 23XI in declining to sign the 105-page agreement.
Hendrick expresses uncertainty regarding the intentions of 23XI and Front Row in their decision to hold out. The charters they possess are set to expire and be revoked in December unless an agreement is reached with NASCAR.
“I don’t have a stake in that,” Hendrick remarked. “We’ve had numerous discussions about this matter. It seems that the majority of teams believe we have maximized our options and it’s time to move forward.
“I wish them luck. They are quite firm in their stance, but I’m not even aware of NASCAR's response to this situation.”
The series has remained silent on the issue for several months. Hendrick noted that if 23XI and Front Row manage to negotiate their charter agreements, any benefits they secure should also be extended to the 13 teams that finalized their agreements last week.
“I believe that if NASCAR makes any adjustments for those two teams, it should apply universally,” Hendrick stated. “It would be the fair course of action, as it would be unjust for the teams that adhered to the deadline to see others receive more favorable terms afterward.”