To obtain a charter for their second vehicle in 2022, 23XI Racing paid a lot more than they expected.
Years ago, NASCAR introduced a charter system. It’s the auto racing’s take on franchising their teams.
NASCAR has issued 36 charters. There will be no more, and they will be sold on the open market. However, after three consecutive years of poor performance, NASCAR reserves the right to reclaim a charter.
Charters were once sold for as little as $1,000,000. Those days are long gone.
The cost of NASCAR ownership has decreased with the arrival of the Next Gen car in 2022. Each team is limited to seven chassis. Furthermore, because the car is a spec design, the research costs have been reduced.
Denny Hamlin and Michael Jordan will own 23XI Racing when it joins NASCAR in 2021. The No. 23 car was signed with Bubba Wallace as the sole driver.
23XI Racing announced months ago that they would expand to a two-car effort in the NASCAR Cup Series. Kurt Busch has been signed to drive the No. 45 car.
The team attempted to obtain a number of different charters. However, due to high demand from multiple new NASCAR teams entering the sport, deals fell through.
23XI Racing finally obtained a charter for their second team in November. They also paid a lot more than they expected to get it.
For a single charter, 23XI Racing paid StarCom Racing $13.5 million. That raises the bar for charter value.
Denny Hamlin comments on the NASCAR charter price
“All it did was tell me that my investment last year, of $4 million, was a good investment,” Hamlin said.
“Not ideal. But, if we plan on being in this sport for a long time, then we’re all placing a bet. Hopefully, our chips don’t get taken off the table.”
“I believe it’s reached a plateau because the people that have needed charters, no have them. Until there’s new people that want to come into this sport, I don’t know that there’s really any demand, at this point.”
The purchase of the StarCom Racing charter included only the charter.
“I got a piece of paper that I got to sign. That’s essentially what I got for $13.5 million.”
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