The ongoing lawsuit between NASCAR and two Cup teams, 23XI Racing and Front Row Motorsports, has divided the racing community. The teams, after declining to sign the new charter agreement after over two years of negotiation, took NASCAR to court on anti-trust grounds. They claimed that NASCAR is a monopolistic bully and that the new deal is designed to cater to their financial needs, not the teams.
It’s no secret that the team owners have been investing millions of dollars into making the sport tick. Meanwhile, they’ve had very little to show for their investments. Even the winningest team, Hendrick Motorsports, hasn’t been profitable in the last 10 years. Jeff Gordon was the one who disclosed this detail while speaking on Dale Jr. Download.
Unable to bear the rising costs of racing, many teams have closed down their NASCAR racing operations. And Tony Stewart’s SHR was the most recent example of how volatile the NASCAR industry is. Despite the charter system in place that allows the team value for their investment and revenue split from TV, it seems like the current economic model isn’t sustainable for the teams.
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While we have had different opinions on charters. Having left the sport Tony Stewart didn’t hold any punches in calling out the leadership group at NASCAR. He was very critical of the whole charter deal saga, and Rick Hendrick’s comments, in particular, stood out for him. The veteran team owner conceded, “I was just tired.” He further labeled the charter system as a joke, highlighting the ongoing lawsuit that the two teams have filed against NASCAR.
“The charter agreements are a joke. And if people aren’t smart enough to read between the lines of when someone like Rick Hendrick says, I just got tired of arguing with them… So if people aren’t smart enough to read between the lines and figure out what that means, then you’re all missing the whole big picture.” Tony Stewart said this in an interview with Cars & Culture with Jason Stein.
NASCAR Team Owner & Racer @TonyStewart says you can read between the lines with what happens with the business of NASCAR and see what’s actually happening. #tonystewart #nascar #nhra #topfuel #racing #auto #automotive pic.twitter.com/lBgVJHa8hz
— Cars & Culture with Jason Stein (@CarsAndCulture) November 3, 2024
NASCAR fans who are always on their A-game to share their views and perspectives on hot topics surrounding the sport agreed with Tony Stewart. And they certainly made their voices heard on social media platforms.
What’s your perspective on:
Are 23XI Racing and FRM heroes for challenging NASCAR, or are they risking too much?
Have an interesting take?
Would the situation be any different if Denny Hamlin wasn’t involved in this lawsuit?
Let us not forget that both 23XI Racing and FRM are risking their future in NASCAR with this lawsuit. Having not signed the charter agreement, they are not entitled to secure the starting place or perks of a chartered team. While running as an open team is an option, it would simply run them out of business with the rising cost of operating a race team. This is why a race fan on Reddit was rallying behind the team, hoping for their victory in this legal battle. “Let’s just hope 23XI and FRM win that case.”
Unable to break the resistance of the team alliance, NASCAR resorted to a divide-and-rule policy. They meet with the teams in private to try and influence them into signing the deal. But all bets were off just before the start of the playoffs, the team was given an ultimatum to sign the deal with the threat of losing out on their charters. And now that fans have heard Stewart’s story, they are sold that NASCAR forced the teams to bend their knees, and they did. “Its definitely meaning that NASCAR wasn’t negotiating in good faith, they basically came and said this is the deal, take it or leave it. Some teams (probably like Hendrick) got some minor concessions, but NASCAR didn’t give them much.”
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Charters is NASCAR’s take on the franchise model, but compared to other major sporting series, they are not equitable. On one hand, you have NASCAR, which has control of the majority of race tracks, TV deals, and other revenue streams. Meanwhile, the team owners are the ones who have to pay a premium to get hold of the charters, which are estimated to be around $25-30 million. Moreover, they are the ones who are putting in the means and resources to run their race teams. So you see the concerns raised by 23XI and FRM are not outlandish, and this view was further back by this fan’s comment, “Charters are a joke and need to be eliminated with no replacement.”
While the courts are ultimately going to decide the fate of teams and NASCAR, there were a few who disregarded the arguments made by the teams. Historically, NASCAR has suppressed voices that challenge the status quo. However, with Michael Jordan and Denny Hamlin now in the picture, things might change for good. And the mere thought of that has got this race fan pumped: “But the armchair experts in this community told me that Denny and 23XI/FRM are clearly in the wrong and are simply entitled as hell.”
Imagine Rick Hendrick or Richard Childress defying NASCAR’s system, and suddenly people start to take this issue seriously. But in reality, Hamlin is a polarizing figure in the sport and does not garner the backing and support of the fans as much as other entities. Highlighting this blatant hypocrisy of a few fans, this Reddit user added, “Its literally only because its Denny. If Hendrick was the one who didn’t sign people here would be supporting them unconditionally lmao.”
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Opinions and perspectives are something NASCAR fans are known for. However, in this case, even an educated guess or prediction can fall flat with the next court ruling. This is why it is tough to say what the outcome of this conflict is going to be.
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Debate
Are 23XI Racing and FRM heroes for challenging NASCAR, or are they risking too much?