Bubba Wallace’s Future in Limbo as 23XI Racing Holds Out on New Charter Deal

A NASCAR imposed deadline for the 15 Cup teams currently possessing Charters to sign the new Charter agreement that runs 2025-2031 was met by all but two teams.

In a post on X (formerly Twitter) Saturday, 23XI Racing said it decided not to meet Friday night’s NASCAR-imposed deadline. A source that asked not to be identified said the other team that didn’t sign the new Charter agreement was Front Row Motorsports. FRM’s official statement when asked if it had signed the new Charter agreement was “no comment.”

NASCAR also declined comment on the Charter situation.

One team executive who asked not to be identified said no one was “threatened or coerced” into signing the agreement. He said the value gained by signing the agreement outweighed not signing it because now the teams could move forward in a positive manner. Brad Keselowski said RFK Racing signed the new Charter agreement because “we want to run NASCAR for a long time to come and signing the Charter agreement is a statement to our commitment to doing just that.”

“One of these agreements is only good when everybody’s just a little bit jaded,” Keselowski said. “I think there’s things, obviously, we would like to have better, but … I think to some degree there’s pieces that we really like, and there’s pieces that you know, not so much, but it’s hard to use the word fair. I don’t know if I know what that means. For us, we felt like it was right to do a deal and move forward. We are getting to a spot where it’s important to get these things settled.”

Keselowski hasn’t ruled out acquiring a third Charter for next year, possibly leasing one if not buying one.

“I think there’s a little bit of a stalemate on what’s for sale and what’s not for sale,” Keselowski said. “But I think knowing that the Charters will be around next year certainly helps our chances.”

A Charter guarantees a team a starting position in every NASCAR Cup points race and, therefore, a portion of the purse. Teams may sell their Charters on the open market or lease a Charter. There is a performance clause. If a Charter team finishes in the bottom three of the owner standings among the 36 Charter teams for three consecutive years, NASCAR can take the Charter from that organization. Since there are 36 Charters, that leaves four positions open in a race’s starting field to teams that don’t possess a Charter.

The amount of money each team receives from its Charter agreement affects the drivers’ contracts. Bubba Wallace confirmed Saturday that his contract remained in limbo due to 23XI Racing not signing the Charter agreement.

“My process has been kind of going hand-in-hand with the Charter agreement,” Wallace said. “It’s frustrating to see where we’re at because that impacts my life and livelihood and everything moving forward for my future.”

In 23XI Racing’s statement on social media, the team said that in a letter to NASCAR it “did not have an opportunity to fairly bargain for a new Charter contract.”

“We notified NASCAR what issues needed to be addressed, in writing, at the deadline,” 23XI Racing stated. “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.”

When 23XI Racing co-owner Denny Hamlin was asked if NASCAR could take the team’s two Charters since it didn’t sign the agreement, he said, “I don’t have any comments around it.” He doesn’t know if it will be resolved but noted “we’ll work through it.”

Hamlin admitted it was “frustrating” that more teams didn’t follow 23XI Racing’s lead, but noted “every team does what’s best for them.” Racing without a Charter is permitted but it would be “financially tough for sure.”