NASCAR New Sanction Agreements Surface Regarding Payments and Exclusivity
New verbiage has been added to the NASCAR sanctioning agreements. The lines include a new payment structure to teams and tracks. A new exclusivity line is also signed by the tracks that hold NASCAR Sprint Cup Series events.
Dover International Speedway has two race weekends a year. Their entire business model is basically the NASCAR Sprint Cup Series and not much else. This is unlike other tracks which mostly fill the schedule with various events.
Dover filed select financial information with the Securities and Exchange Commission last week. It revealed some interesting information about the new NASCAR Agreement.
Dover International Speedway will see an increase from 3.37% to 4.24% annually for the next five years regarding the NASCAR television package. The equals a $30.7 Million payout just from the TV broadcast. Beyond that the payment will increase $1.1 Million to $1.4 Million a year all the way through 2020.
Other new language has been added to the sanction agreement. NASCAR has banned any race similar to their series being hosted at any track on the NASCAR Sprint Cup Series schedule.
This is important. There has been small speculation leaking of a breakaway with the race team alliance. That’s a group of the top NASCAR teams who created the group to make sure the future of the sport is organized in a multi team effort.
While no talks of a breakaway from NASCAR has ever come from the group itself, it’s always been a possibility. With this new line in the agreement that makes it very hard.
In order for a breakaway series to form it will now have to be at BIG tracks that do not have any agreement with the NASCAR Sprint Cup Series. Their are few. That small line secures the future of NASCAR in a lot of ways.
Now, for a breakaway series to form it will have to visit all new tracks, separate from the NASCAR schedule.
Beyond that, there is a totally new payment structure. 60% to teams, 30% to promotors and just 10% to the NASCAR sanctioning body themselves. This is the non-live tv payment structure which includes highlights and various digital content.
NASCAR has also created a promotor council, this requires tracks to work in alignment with NASCAR to organize and promote each event.
Pace vehicles also have some new rules. The pace vehicle in each event must be by a manufacture from the NASCAR competition.
New rules: NASCAR