NASCAR Rumors: Kaulig Racing facing major overhaul with Ty Dillon's seat reportedly in doubt

Ty Dillon was anticipated to land a 2026 drive with Kaulig Racing despite a topsy-turvy 2025 campaign, as the team had previously hinted at the contract extension almost being a done deal. However, according to recent reports, the Welcome-born driver's extension has not been signed so far, and he could possibly lose his full-time seat next year.

Dillon made his Cup Series debut in 2014. While he made several one-off race starts till 2016, he joined the field full-time in 2017.

Though he has had to endure a few ups and downs throughout his racing career, his recent venture with Kaulig Racing initially looked like it was going to be a long-term one. Even team president Chris Rice had revealed his intentions of retaining Dillon for the 2026 season earlier in the year (via SiriusXM NASCAR Radio):

"We’re still in negotiations. I think by Friday, we will 100% know. We’re real close to having Ty’s deal done again for ’26."

However, these negotiations have seemingly broken apart, as Kaulignation on X reported the high possibility of the 33-year-old not continuing in the No. 10 car for the 2026 season. This means that a mayhem could go on to secure Dillon's seat for next year.

Though the report didn't entirely rule out the possibility of him signing a contract with the team, it came with an asterisk that the alleged contract might see him take a part-time role for the squad. This would be regarded as a serious demotion for Dillon, who had been planning to continue with the squad after scoring a top-10 finish at the Quaker State 400 held at the Atlanta Motor Speedway.

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Ty Dillon asserts 2025 has "been a great year with Kaulig Racing"

Kaulig Racing's No. 10 driver Ty Dillon getting introduced before the start of the Mobil 1 301 at New Hampshire Motor Speedway - Source: Imagn

Ty Dillon has been at it in the Cup Series for the past few years. With his vast experience, he might seem like a solid driver for various teams.

However, his Cup Series career has been littered with race starts with small NASCAR teams, which are known to change drivers way more frequently. This trend could seemingly follow on to the Kaulig Racing squad, which might part ways with Dillon at the end of the year.

Moreover, this might even hurt more for the Welcome-born driver, who, heading into the Phoenix race weekend, had been praising the team for the 2025 campaign it had, as he said (via Kaulig Racing):

"It’s been a great year with Kaulig Racing. There’s been a lot of highs, and great moments throughout the season. The In-Season tournament was awesome run for our whole program."

Ty Dillon has made 281 race starts in the Cup Series over the past dozen years, with a best result of third that he secured at the fall race at Talladega in 2020.