23XI Racing and Front Row Motorsports could potentially lose out on their charter following their stance against NASCAR. The two teams have decided not to sign the charter deal, demanding a fair negotiation on doubts of sustainability in the sport in the long run. Michael Jordan and Denny Hamlin’s 23XI Racing camp have been outspoken about an equitable enterprise in particular.

And going by their stance, it feels like NASCAR isn’t budding against their demands. Reports suggest that the teams might pursue legal measures if the France family assumes control of their charters. But, according to Dale Earnhardt Jr., nothing of the sort will happen, and he predicted this friction will lead to more opportunity and growth for the sport.

Dale Earnhardt Jr. predicts the value of charters is only going to rise

The JR Motorsports co-owner time and again expressed his wish to join the Cup Series. However, uncertainty regarding charters and their value has kept him aside from investing in a financially draining series. While the ongoing rift between NASCAR and 23XI Racing might seem distasteful, Dale Jr. thinks it will fast-track the process of an equitable financial model, that would attract more investment in the future.

Just recently, Jordan sold his majority stakes from the NBA team Charlotte Hornets for $3 billion. However, such a provision or ownership perks are not present in NASCAR, which could attract more investment opportunities. Adding to this sentiment, Dale Jr. while speaking on the Dale Jr. Download, explained, “So 23XI believes that, but they can’t get that growth potential unless NASCAR creates that value for them in this new agreement. That’s why they’re fighting because that model makes sense to them. ”

Although the current valuation of the Cup team charter ranges from $20 to $25 million, a franchise model could see NASCAR reach new heights. “I will not be shocked if the charters at one day down the road, maybe in a very short period of time, it might be five years, $125 or $150 million dollars. That is to me reasonable; if you’re an owner, that’s a reasonable trajectory…They’re not going to take away Michael Jordan’s charters, never. They’re going to try their hardest,” Dale Earnhardt Jr. added.

Now, NASCAR didn’t necessarily want to go down the road of being a franchise sports model. The charters supposedly had to guarantee the teams a starting position on the field, with TV revenue splits. However, they might have to reconsider this approach given the roadblocks they are now facing.

NASCAR and teams will need to find a common ground

Trending

“My Body Needed Time”: Tony Stewart’s Wife, Leah, Discloses Her Roadblocks to Motherhood Amid Racing Dilemma

NASCAR Insider Urges Rick Hendrick to Rope In ‘Next Kyle Larson’ After $100,000 Win

Toyota Eyeing Complete Australian Takeover Amid Kyle Busch’s Failed Supercars Ambition

Joe Gibbs Racing Potentially Blocking Truck Series Phenom on Denny Hamlin’s Radar After On-Track Bad Blood

Despite Multi-Million Expansion, Ex-Dale Earnhardt Insider Exits Trackhouse in Shock NASCAR Move

There’s been a lot of quotes and stories surrounding the charter deal this past week. But out of all, this one quote by Denny Hamlin summed up his position as the co-owner. “Who spends the money? That’s the teams. Whose sponsors go buy a suite? That’s the teams. Whose sponsors activate in their midways? That’s the teams. That’s the tough part that they just don’t value us,” Hamlin said via Actions Detrimental.

So he argues that having invested in the sport, he now needs NASCAR to repay the faith shown with a viable economic solution. We have seen a ton of teams go out of business in the last decade. The likes of Chip Ganassi Racing, Furniture Row Motorsports, Phoenix Racing, and Michael Waltrip Racing are just a few notable names.

Not to forget, one of the powerhouse teams in the Cup Series, Stewart Haas Racing, is also taking an exit door. Therefore, the concerns of the team owners could go beyond just getting a bigger piece of the revenue pie.

It is hard to imagine 23XI Racing being stripped of their charters for not agreeing to sign the charter deal. And although that remains a possibility, the two parties still have four months to resolve the issue.