Charters in NASCAR work similar to a franchise in other sports. The past charter agreement was set to expire at the end of the 2024 season.
NASCAR teams have been in negotiations with the sanctioning body for several years regarding a new charter agreement. Multiple deadlines have come and gone along the way.
Teams were looking for more funding from the sport itself. They were also looking for permanent charters among other line items. But, the bulk of the negotiation related to distribution of funds.
NASCAR teams looking for more money; Series issues statement
In the old agreement, teams were only given 25% of NASCAR TV revenue. Many teams, even the big ones have stated multiple times that they’re losing money.
This week, NASCAR put their iron fist to the desk. They wanted charter negotiations to end ahead of the 2024 Playoffs which began last weekend at Atlanta Motor Speedway.
But, how did NASCAR get teams to fold? According to team owners, NASCAR threatened to take charters away from teams who didn’t sign.
Denny Hamlin on negotiations with NASCAR
Ahead of the announcement that all but two teams signed a new charter agreement, NASCAR was stating that they were getting close to a new deal.
NASCAR teams sign new charter agreement; 23XI Racing excluded
“Who’s telling you that it’s getting closer and closer? They want it to,” Denny Hamlin noted ahead of the race weekend.
“The truth is, they keep going in the wrong direction. It depends on who you ask.”
“There’s probably a handful of teams that are happy to take any deal they can get. Then, there’s others with some business sense that says this is unreasonable.”
Denny Hamlin says it costs $18M to run a NASCAR team
NASCAR threatened teams they would take charters away
On Friday afternoon, NASCAR handed out a modified 100+ page charter agreement. Teams were given until midnight to sign it.
NASCAR played the card that if teams didn’t sign the new agreement, they would claim the charters of teams that didn’t sign.
13 of the 15 team owners elected to fold and sign the revised agreement. However, many didn’t want to sign, they felt forced.
For the teams that have signed, the charter agreement extends through the 2031 season. Additionally, there’s a 7 year option after 2031.
“Communist regime,” an anonymous team owner told The Athletic.
23XI Racing and Front Row Motorsports are still holding out in hopes of a better agreement.
Where does it go from here? It appears that court is the most likely destination.
NASCAR teams looking for more money; Series issues statement
Links
NASCAR | 23XI Racing