New NASCAR Charter System Set For Imminent Release According To Insider

NASCAR is on the verge of finalizing a new charter system agreement with its Cup Series teams, according to a report from Sports Business Journal.

The racing organization aims to wrap up these negotiations before the 10-race playoffs commence, with the latest proposal having been presented to teams last week.

The current charter system was introduced in 2016, but it has faced criticism for not offering permanency, thereby posing challenges for teams attempting to attract long-term investors. Teams also risk losing their charters if they perform poorly or fail to field cars consistently, which exacerbates financial instability.

Most Cup Series teams have struggled with annual financial losses, partially attributed to how revenue from media rights is distributed. Currently, only 25% of these revenues go to the teams, while 65% and 10% are allocated to tracks and NASCAR, respectively. The existing financial model has made it difficult for teams to invest in their operations and maintain competitiveness.

However, a new media rights deal valued at $7.7 billion has been secured with FOX Sports, NBC, Warner Bros. Discovery, and Amazon for the period of 2025 to 2031. This deal is expected to offer increased media rights revenue in the new charter system, potentially easing some financial burdens on the teams.

NASCAR President Steve Phelps shed light on the need for these changes during Kevin Harvick’s “Happy Hour” podcast.

“Something needs to change because if it doesn’t change in my opinion in seven years when we’re re-negotiating the financials of these charters, it’ll come back to we’re not making any money or we’re losing X, Y and Z, and you’ll always be chasing that,” Phelps said.

“If there’s more money given, typically what happens is race teams want to take every dollar and then some and spend it to go fast.

“Which I get because it’s a vicious cycle that exists. If you don’t go fast, you can’t get sponsorship, if you’re not winning, you can’t get sponsorship. We have seen over the last decade teams that don’t run well, it’s hard to get sponsorship, and they’ll lose it, and will either be stolen by another team or worse yet, they’ll leave altogether, which is not in the best interest of anyone.”

This new charter system, coupled with the impending media rights deal, could usher in a new era of financial viability for NASCAR teams.

What is the 2024 NASCAR Cup Series Playoff Schedule?

Playoffs Round Of 16:

September 8 – Quaker State 400 available at Walmart – Atlanta Motor Speedway, Hampton, Georgia
September 15 – Go Bowling at The Glen – Watkins Glen International, Watkins Glen, New York
September 21 – Bass Pro Shops Night Race – Bristol Motor Speedway, Bristol, Tennessee

Playoffs Round Of 12:

September 29 – Hollywood Casino 400 Presented by ESPN Bet – Kansas Speedway, Kansas City, Kansas
October 6 – YellaWood 500 – Talladega Superspeedway, Talladega, Alabama
October 13 – Bank of America ROVAL 400 – Charlotte Motor Speedway Road Course, Concord, North Carolina

Playoffs Round Of 8:

October 20 – South Point 400 – Las Vegas Motor Speedway, Las Vegas, Nevada
October 27 – Straight Talk Wireless 400 – Homestead-Miami Speedway, Homestead, Florida
November 3 – XFINITY 500 – Martinsville Speedway, Martinsville, Virginia

Playoffs Championship 4:

November 10 – NASCAR Cup Series Championship – Phoenix Raceway, Avondale, Arizona