The 2024 NASCAR Cup Series season is a contract year for Bubba Wallace, and while all indications early in the season were that a deal would be reached between the driver and his 23XI Racing team, the series is heading into the Playoffs this weekend at Atlanta Motor Speedway and the 32-year-old driver has yet to solidify his plans for 2025.
On Saturday, 23XI Racing issued a statement confirming that it has held out on signing the Charter Agreement issued by NASCAR this week. According to the statement from the team’s ownership group, NASCAR self-imposed a deadline of Friday night for teams to sign.
According to reports, every team aside from 23XI Racing and Front Row Motorsports signed on the dotted line, however, Front Row Motorsports hasn’t publicly confirmed their status in regard to the Charter Agreement. 23XI Racing not signing the deal is a big problem for Wallace, as his new contract has been put on hold due to the unknown status of the team’s two Charters.
With just five months remaining until the start of the next NASCAR Cup Series season, Wallace is uneasy about the situation.
“I know my process has been kind of going hand-in-hand with the Charter agreement. It’s frustrating to see where we’re at, because that impacts my life and livelihood, and everything moving forward with my future,” Wallace explained in a media bullpen session at Atlanta Motor Speedway on Saturday. “That’s really all I’ve got to say about it.”
When pressed to clarify that his deal can’t be done until 23XI Racing has signed the charter agreement, Wallace responded, “That’s what we’re waiting on.”
After suffering a powertrain issue during his qualifying run, which will result in him starting dead last in the field in Sunday’s Quaker State 400 at Atlanta, Denny Hamlin co-owner of 23XI Racing was questioned about Wallace’s contract, and whether it’s completion is tied to the Charter Agreement.
“Anything in the future is certainly dependent on things like that,” Hamlin explained. “So, certainly.”
23XI Racing isn’t satisfied with the terms of the current revision of the Charter Agreement from NASCAR, which has kept them from signing the deal. Ultimately, there’s a chance that 23XI Racing forfeits its team charters if they don’t come to an agreement with NASCAR before the expiration of the current Charter Agreement, which is set to expire at the end of the 2024 calendar year.
Without charters, 23XI Racing wouldn’t be banned from competing in the NASCAR Cup Series, several teams such as NY Racing and Live Fast Motorsports, which are both in the field for this weekend, do that currently. There’s just one problem, Chartered teams get a massive portion of the weekly race winnings.
While it’s possible, dropping down to an unchartered team would complicate the financial side of things for 23XI.
“Financially, it would be tough for sure,” Hamlin admitted.
This raises the question of if the team would even field two cars if they don’t retain their team charters. That will all be answered in time as the negotiation period continues to unfold. But as it stands, Wallace finds himself without a contract, and without a real clue of how this situation is going to end.
