"Sign or we will revoke your charters" - NASCAR insider responds to fan doubts on charter agreement threats

NASCAR insider Jenna Fryer has reported that team owners were "threatened" to sign the new charter agreement for 2025. She has claimed that the teams were told their charters could be revoked.

The new charter agreement has recently become the highlight of the sport. Reports claim that the teams are not completely satisfied with the agreement and hope for changes. However, NASCAR journalist Bob Pockrass posted on social media, claiming that all teams have signed the new agreement, except for two (23XI and Front Row). Responding to this, Jenna Fryer said that the teams that did sign were forced to do so.

Furthermore, responding to a fan's query about team owners like Joe Gibbs being "threatened", she claimed that the teams were told charters would be revoked if they did not sign the agreement.

"'Sign or we will revoke your charters' can be scary language to a family business."

Reportedly, teams initially refused to sign the new agreement because they wanted a larger share of the revenue. It was speculated that some of the teams find it hard to break even with the cost of maintaining their cars during a season under the current agreement. The teams also wanted the charters to become permanent, however, the authorities neglected the idea.

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23XI Racing past deadline to sign NASCAR charter agreement

The Denny Hamlin and Michael Jordan-owned 23XI Racing has skipped the deadline to sign the new charter agreement. In a statement released earlier, the team mentioned that it wishes to discuss the issues with the current agreement with NASCAR.

"We notified NASCAR what issues needed to be addressed, in writing, at the deadline. We are interested in engaging in constructive discussions with NASCAR to address these issues and move forward in a way that comes to a fair resolution, while strengthening the sport we all love."

Team co-owner and Joe Gibbs Racing driver Denny Hamlin also discussed the issue with the charters on the Actions Detrimental podcast earlier. Talking about the agreement, he stated that the deal has never been "fair." He added that 23XI would accept a "decent" deal as well.

"It's never been great," Hamlin continued, talking about the deal presented by NASCAR. "I think, personally, from 23XI's perspective, we would take a decent deal not even a fair deal just a decent one. And you know from our standpoint it it's got a ways to go."

What are charters?

Charters are essential for teams. They are similar to contracts for cars on the grid and ensure that the particular car gets a share from the revenue the sport generates. This gives teams enough funding to run their cars throughout the length of the season, which further leads to better sponsorships.

There are currently 36 charters on the 40-car grid. The non-chartered cars mostly gain any profit from the prize money, which cannot be guaranteed. As a result, they do not get better sponsorships and the cost to maintain and run the cars for the entire season becomes difficult.