It’s not often that Michael Jordan is beaten, but if rumors are to be believed, Brad Keselowski has done the unthinkable. According to some industry executives, RFK Racing could make a major investment in a third charter, expanding their team to three full-time cars in the NASCAR Cup Series. 23XI Racing has been linked to one of Stewart-Haas Racing’s two charters that are up for sale, but it seems like their plans have been scuppered right under their noses.

The ongoing charter agreement has reached a stalemate, and 23XI co-owner Denny Hamlin hasn’t shied away from criticizing NASCAR for the way they have handled the never-ending negotiations.

Kroger could propel RFK Racing toward a third charter

According to a report by the Sports Business Journal, RFK Racing is most likely to land a sponsorship deal with Kroger, the third-largest retailer in the United States. If the deal materializes, it would reunite the grocer with Chris Buescher, who competed in the company’s colors from 2017 to 2019 while racing for JTG Daugherty Racing. By getting Kroger on board, industry executives believe that RFK Racing could expand their team to three full-time cars. The team, currently owned by the Fenway Group, could reach an agreement to lease a third charter, as long as the new charter agreement continues to include an option to do so.

But where does that leave 23XI Racing? As discussed in a YouTube video uploaded by Eric Estepp, the team has been interested in expanding to three full-time cars as well. But if RFK Racing succeeds in its coup, Denny Hamlin and Michael Jordan will have no other option but to concede defeat. Out of the three charters that were up for sale by Stewart-Haas Racing, Front Row Motorsports has already purchased one for an estimated price of $20m-25m. Trackhouse Racing has been heavily linked with one of the charters as well, intending for Shane van Gisbergen to drive their third car. If rumors about RFK Racing’s intention to expand their team are true, that would explain where the third charter will end up.

Denny Hamlin has been particularly outspoken about his frustrations with the charter negotiations. As things stand, the current agreement will expire on December 31, and teams are continuing their fight to secure permanent charters. Unlike other sports leagues, NASCAR charters are not permanent franchises, with teams running the risk of losing them due to poor performance or failing to field their cars every week. This has not only resulted in teams losing money every year, but it has also caused difficulties in attracting outside investors.

And as the 23Xi Racing co-owner and Joe Gibbs Racing driver put it: “If you rent, you’re gonna be more apprehensive to invest. If you own the house, you’re more likely to invest in it because it is a long-term asset that will be worth something in the long run. That is what we’re asking for is let us own these things. I paid for it. Why do I have to go through these charter negotiations every seven, five years whatever it might be and then I have to fight to keep what I’ve already paid for. That doesn’t make any sense to me.

Since there has been no positive development on the charter negotiations front, it should come as no surprise that 23XI Racing has opted out of expanding its team. After all, they want to own what they pay for, and NASCAR isn’t cooperating with their demands. Even Michael Jordan seemed at his wits’ end with the difficult situation. In a conversation with The New York Times back in May, the team owner said how it’s a “big, big miss” for NASCAR to opt out of permanent charters. “If you don’t correct that, the sport’s going to die not because of the competition aspect, but because economically it doesn’t make sense for any business people,” the NBA legend said.

As things stand, NASCAR teams have gone as far as to appoint attorney Jeffrey Kessler, who is well-known for sports litigation cases. By doing so, they have sent a clear message to the sanctioning body that they are willing to fight for what they deserve. If that comes at the expense of 23XI Racing missing out on a third charter for their team, Denny Hamlin and Michael Jordan are willing to pay that price.

But what is Brad Keselowski’s opinion about the situation?

Brad Keselowski highlights economic transformation within NASCAR

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NASCAR teams have been working toward upholding the sports’ popularity for a long time. This is why when the sanctioning body signed a $7.7bn media rights deal that spans seven years, it truly became a game-changer in the sport. As part of this agreement, the Cup Series broadcasting rights will be split between NBC, Fox, Amazon, and Warner Bros. Discovery. However, Cup Series teams are demanding an increase from the 25% cut they receive from broadcasting contracts, leading to a stalemate between the teams and NASCAR.

Speaking about the evolving economic landscape in the sport, RFK Racing co-owner Brad Keselowski said, “If I go back in time 20 years ago, the dynamic was, as far as funding a team, 90 percent sponsorship-based, 10 percent outside revenues, which might be race purse or outside revenues. And if you take a snapshot of where we are today, maybe it’s closer to 75 sponsorship, and 25 percent purse or outside revenue so to speak. It appears the new charter agreement is going to get that somewhere closer to 65-35, which is a shift that can’t be understated.”

However, the #6 driver also mentioned the downside of the situation: But the reality of that is it still doesn’t fully flip the script so to speak. It’s just a step in the right direction.”

Unlike other sports, NASCAR is exclusively owned by the France family, who also own the majority of tracks. This means that teams have been traditionally dependent on sponsorships as a primary source of income, which has severely affected their ability to sustain themselves financially. If NASCAR doesn’t increase the teams’ media rights allocation, it’s not beyond the realm of possibility that other teams will follow Stewart-Haas Racing in the foreseeable future and cease operations in the sport.

What do you think of the situation? Let us know in the comments!