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Is NASCAR's charter system pushing iconic teams like 23XI Racing to the brink of collapse?

There was a lot of optimism and hope at the 23XI Racing camp before they had their first encounter with NASCAR in the federal court. After denying the request of both 23XI Racing and FRM for expedited discovery, the federal court ruled against them by not granting a preliminary injunction. In just a matter of months, the mood has completely changed, and there are now serious concerns about 23XI Racing’s future in NASCAR.

Although Denny Hamlin and Co. have planned to file an appeal against the ruling, there’s a possibility that they might not have charters after the end of 2024. And it could be the beginning of fall for 23XI Racing.

Denny Hamlin is not sure about 23XI Racing’s participation in 2025

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Will 23XI run as unchartered teams in 2025? This was their stance before entering the courtroom. But, given the current state of NASCAR racing, without a charter, it would be difficult for both organizations to stay afloat. Not to forget, they won’t get any benefits as the chartered teams and will need to qualify every weekend. Although Michael Jordan has deep pockets, he certainly wouldn’t like to burn his money without potential returns. That is the reason why his team is at odds with NASCAR on the charter agreement.

But as it turns out, the potential of the team shutting down its NASCAR operation is an option available on the table. Team co-owner Denny Hamlin shared his takes on what the future could look like for his team with the current circumstances. According to an update by Bob Pockrass, Hamlin isn’t sure about his team’s plan for Clash and the Dayton 500.

“I think it’s all TBD. There are certain agreements we’re going to have to navigate, so I hope so.” However, as mentioned, the team will be able to file an appeal and Hamlin hopes that it will change the current situation. “We were obviously pleased with the ruling that the judge sees merit in the case. He’s going to move forward to expedite it (and) expedite the discovery side of it, which is a reverse from what he had before.” Denny Hamlin said in the press conference ahead of the championship race.

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Is NASCAR's charter system pushing iconic teams like 23XI Racing to the brink of collapse?

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“Obviously [this could give us] an opportunity to refile once the situation changes, because he knows that things will change over the next few months. He (Judge Frank Whitney) understands the complexity of it and obviously understands that the situation is fluid, and we obviously could see some pretty bad harm coming up.” Hamlin added further.

On the flip side, the 23XI Racing team has a big opportunity to leave their mark on the sport with a championship race in sight. Tyler Reddick has made it to the final 4 for the first time, and while he has all the makings of a championship driver, Hamlin revealed the advice he gave to his driver.

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Reddick has surrounded himself with the right people

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On one side you have 6-time NBA legend Michael Jordan and on the other a veteran driver who has seen it all in NASCAR. So it’s fair to say Reddick is getting all the right things he needs to hear before the big race on Sunday. While Hamlin has come shy of finishing the final hurdle, he does understand how things could go wrong for a driver. And based on his experience, this is what he said to his driver to prepare him mentally for the mega event.

“Truthfully, I think that my first time having a shot in the last race, I didn’t enjoy the moment quite as much as I should have because I was nervous, and certainly, it’s hard not to get nervous. But I certainly think that he was probably wound a little bit tight yesterday, and I think today is a new day.” Hamlin added.

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It certainly is going to be a tough fight for Reddick to come out on top this Sunday. Experts and pundits have all either backed William Byron or Ryan Blaney. This essentially makes him an underdog in this race and he certainly can pull of a big surprise at Phoenix.

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