Michael Jordans’ Entrepreneurial Drive Could Potentially Be the End of 23XI and Denny Hamlin’s Dream

Michael Jordan is worried about NASCAR. “That’s a big, big miss right there. If you don’t correct that, this sport’s going to die not because of the competition aspect, but because economically, it doesn’t make sense for any business people,” he said about NASCAR not having permanent charters. He believes this could drive away potential investors. However, the sport isn’t too keen on sharing its power.

This standoff has created a rift among the teams, with powerhouses like Hendrick Motorsports, Joe Gibbs Racing, and particularly 23XI Racing – which is leading the charge – finding themselves at odds with the arrangement. But the tussle could possibly hit 23XI Racing and Denny Hamlin‘s ambitions the hardest, as they’re right at the heart of the debate.

Is Denny Hamlin and Michael Jordan’s dream in danger due to 23XI?

Denny Hamlin once shared his hope of driving for his own squad, 23XI Racing, but for now, he’s sticking with Joe Gibbs Racing because of the top-notch pit crew they provide. But how would he accomplish his dream if the team itself gets dissolved?

Concerning the due charter agreement, it’s 23XI Racing that’s been the loudest and most proactive in the negotiations. Whether it’s Curtis Polk or Denny Hamlin himself, they’re the ones making waves. But it could cause problems for the team overall. How?

Eric Estepp recently pointed out on his YouTube channel, “I’m sure there are a few teams that are backing them that are with them that are supporting them but what happens if at some point those teams sort of back off and suddenly 23XI truly is on an island on their own. I appreciate what they’re trying to do, but what happens if all the other teams are ready to sign? Can one team hold this deal up?”

Michael Jordan hinted that the current blocks in charter negotiations might drive away business folks like himself because it just doesn’t make business sense, a move that would definitely rattle Denny Hamlin. And that means he might pull out from NASCAR if the negotiations do not offer a better deal. Plus, from what Hamlin’s said before and what’s been reported by The Athletic, it seems plenty of race teams might settle for the deal NASCAR’s throwing their way. 

So far, permanent charters are an absolute non-starter. NASCAR Chairman and CEO Jim France is a traditionalist and doesn’t want to go too far from how his father established the sport. Hence, a few teams have accepted that France will not budge when it comes to charters.

If things don’t pan out, 23XI might end up flying solo, putting Michael Jordan’s vision of a successful NASCAR team and Hamlin’s dream of racing for his own squad on shaky ground. No one’s really sure what’ll go down if NASCAR doesn’t flex on the charter agreement, but Hamlin seems to have a bead on what the teams might do if they don’t get a sweeter offer.

NASCAR teams and its drivers fight over the sport’s future

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NASCAR’s been stuck in a standoff over its financial future, with teams and the organization butting heads for over two years. The talks have been hit-or-miss, with NASCAR tossing a bit more money from its new broadcast deal toward the teams but shutting down their hopes for a cut from future revenues like betting. They’re also not budging on making team charters permanent, which is a big deal since teams need these charters to race.

Most teams are bleeding cash under the current setup, fearing they’ll lose a staggering $200 million over the next five years if the status quo sticks. They’re worried about scaring off investors and struggling to keep the lights on while NASCAR seems to be rolling in dough.

As a result of that, Denny Hamlin recently hinted that if the negotiations do not offer a better deal to the teams, they might start skipping races that don’t pay well to avoid deeper losses. He laid it out pretty clearly: “[…] We just wouldn’t show up when we don’t need to. The Clash, we won’t show up at that. The All-Star Race, wouldn’t show up at that. Maybe there’s some races that pay less, we just won’t show up to those. It’s just not financially good.”

The whole situation is more complex than it looks. Teams, including Michael Jordan’s 23XI and others, have to buy their car parts from designated suppliers, ditching tons of old parts for chump change. The new parts wear out fast, only good for about four races, unlike the old ones that could last ten races. Plus, the Next Gen cars have carbon fiber bodies that, while tougher, can’t be fixed if they’re wrecked—not like the old metal bodies that could be patched up. And with the mandated tire purchases costing over a million bucks a season, it’s clear: they’re spending way more than they’re making.