NASCAR Rumors: Michael Jordan’s 23XI faces $100M loss over charter dispute

23XI Racing has been negotiating a charter deal with NASCAR to guarantee entries for its cars from 2025 to 2031. However, recent reports indicate that Michael Jordan's Huntersville-based team could face losses of up to $100 million in current charter values if the matter proceeds to legal proceedings.

According to The Athletic, 23XI is not ruling out legal action amid its reluctance to sign the charter agreements with NASCAR. While this could change how the stock car racing league deals with teams, the report suggests Jordan's camp could lose big money.

“Could it be that the actual leverage in this case is dragging NASCAR to court? Such a move could cause a protracted legal battle, but it could force NASCAR to open its books and reveal the finances of what has been a closely-guarded family business,” The Athletic reported.

The sports media outlet believes that Michael Jordan, who is worth $2.6 billion (as per Celebrity Net Worth), has enough money to make a statement by opting out of the deal and taking it to court.

23XI, co-owned by NBA Hall of Famer Jordan and Joe Gibbs Racing driver Denny Hamlin, refused to sign the multi-year charter extension with NASCAR before last Friday's deadline.

In a statement released by 23XI, the team said it didn’t get an opportunity to negotiate fairly for a new charter contract.

Hamlin also expressed his views on the matter, stating that the team would be open to accepting even a decent deal, as long as it is fair.

“NASCAR’s got their stance, and the teams have theirs. We’ll just see where this goes over the next few weeks. It’s never been great, you know I think personally, from 23XI’s perspective, we would take a decent deal not even a fair deal, just a decent one, and from our standpoint, it’s got a ways to go,” Hamlin said on his Actions Detrimental podcast.

Since 23XI have not signed the charter deal, the team might not be involved with the sport next year. This would affect drivers Tyler Reddick and Bubba Wallace, with the latter expressing his frustrations with the ongoing standoff.

“It’s frustrating to see where we’re at, because that impacts my life and livelihood and everything moving forward for my future,” Wallace said (via Frontstretch).

Front Row Motorsports is the other team that didn’t sign the agreement before the deadline.

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Kenny Wallace believes 23XI owner Michael Jordan is getting advice from attorneys

Kenny Wallace believes Michael Jordan has some attorneys giving him legal advice regarding the ins and outs of the charter agreement.

Here's what Wallace said on an episode of 'Coffee with Kenny.'

“All the other teams […] said ‘We’re exhausted, Ok whatever.’ So it sounds to me like Michael Jordan has some attorneys giving him some advice, they’ve read everything.” [1:58]

“I’m sure Michael Jordan’s attorneys have read all the fine literature. I’m sure they’re not out of the sport,” Wallace added [8:09].