After two years of relentless negotiations, the Race Team Alliance (RTA) has splintered. While once united, many teams ultimately gave in to NASCAR’s demands, even though their concerns went unanswered. The most prominent and successful team owners, including Rick Hendrick, Roger Penske, and Joe Gibbs, have switched sides, leaving teams like 23XI Racing and Front Row Motorsports (FRM) to stand their ground alone. Despite Michael Jordan and younger team owners’ efforts to challenge the status quo and keep traditionalists from dominating the sport, they now find themselves isolated in this battle.
Both 23XI Racing and FRM refused to sign NASCAR’s newly proposed charter agreement, and their defiance has left them in a precarious position. While their refusal aligns with their desire to preserve their independence and protect future revenue streams, the road ahead appears uncertain. The teams that chose to sign, including Hendrick’s, offered what seem to be convenient justifications for their decisions, effectively distancing themselves from the teams left to fight alone.
A Split Within the RTA Led by Hendrick
At the beginning of 2024, the RTA initiated discussions with NASCAR, but the organization avoided meeting with the alliance as a group. Instead, NASCAR held individual meetings with team owners, focusing on older, more established figures like Rick Hendrick, who has achieved immense success in the sport. Hendrick Motorsports boasts over 300 Cup victories and 14 Cup championships, while Penske has four titles, and Gibbs owns five. These veteran team owners have built their success under NASCAR’s long-established charter system, which appears to have influenced their willingness to sign the new charter deal.
According to NASCAR analyst Eric Estepp, this historical success may have played a significant role in the decision of Hendrick and the other seasoned owners to accept the deal. Veteran driver Kevin Harvick echoed this sentiment, explaining that legacy owners like Richard Childress, Jim France, Rick Hendrick, and Roger Penske have deep-rooted relationships with NASCAR’s leadership. These long-standing connections likely played a role in their decision to fall in line with the new deal.
Hendrick himself offered a straightforward reason for agreeing to the charter, stating, “I was just tired… We worked really hard for two years, and it got to the point where you’re not going to make everyone happy.” This weariness seems to have pushed him toward compromise rather than continued resistance.
Interestingly, Michael Jordan and other members of the RTA, like Denny Hamlin, had realized earlier that trying to fight NASCAR’s rigid stance might be futile. Estepp noted that the alliance intentionally tried to leave older, legacy owners like Hendrick out of these meetings and instead sent younger figures such as Jeff Gordon, Dave Alper, and Curtis Polk to represent the teams. The idea was to push fresh faces forward in the hope of promoting a new direction for the sport.
However, despite being shielded from some of the more intense negotiations, Rick Hendrick and his veteran colleagues chose to abandon the RTA and sign the charter deal, leaving the alliance fractured. The big question that remains is whether the sport would be in a better place now had 23XI and FRM been supported by the older, more influential teams. Would there have been a more favorable deal for all teams if the alliance had stayed united?
The answer seems to be no. A deal that benefited all teams, regardless of size or legacy, would have improved NASCAR as a whole. Unfortunately, despite the efforts of Michael Jordan and Denny Hamlin, they are now left to fight for a better future without the support of their peers. The 23XI Racing team, however, isn’t giving up just yet. After refusing to sign the new charter deal, the team issued a statement, indicating their desire for further discussions with NASCAR: “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.”
Front Row Motorsports Stands with 23XI
While 23XI’s decision to stand firm is well documented, the motivations behind Front Row Motorsports joining them are less clear. As a relatively young team, FRM has a lot at stake. The team recently invested $25 million in a Stewart-Haas Racing charter for the 2025 season, signaling CEO Bob Jenkins’ willingness to go all-in, much like Hamlin and Jordan. But why did they choose to side with 23XI and risk their future?
One possible answer could lie in the belief that NASCAR’s current charter system benefits larger, more established teams at the expense of newer ones. By standing with 23XI, FRM may be attempting to secure a more equitable future for themselves and other up-and-coming teams.
Other Young Teams Opt Out of the Fight
However, not all newer teams are willing to take that same risk. Justin Marks, owner of Trackhouse Racing, which entered the NASCAR scene in 2021, initially seemed poised to challenge the status quo. Yet, when it came time to make a decision on the new charter system, Marks chose to sign the deal and not push back.
“I really admire 23XI’s conviction and commitment, and how hard they’re fighting for themselves and the teams in the sport, but I just don’t know what happens from here on out,” Marks admitted. He added, “Regardless of how you want to build a narrative around it, it’s NASCAR’s sport. They said they were done negotiating, and that’s the deal. It’s not going to change.”
For Marks, the decision was less about challenging authority and more about maintaining a collaborative partnership with NASCAR. He prioritized stability and cooperation, even if it meant accepting terms that weren’t entirely favorable.
As the dust settles, it’s clear that both 23XI Racing and Front Row Motorsports are heading into a storm. Without the support of veteran powerhouses like Rick Hendrick, the two teams face an uphill battle. However, their willingness to stand firm for what they believe is right may set the stage for a new era in NASCAR.
Whether their defiance will pay off or lead to more challenges remains to be seen. What is clear, though, is that Michael Jordan, Denny Hamlin, and their allies are not backing down. They may be fighting alone, but their commitment to creating a better future for the sport remains strong.
