Teams have sent a proposal to NASCAR; The response from the series wasn’t to their liking
In 2025, NASCAR will be operating under a new tv deal as well as new charter contracts. And if the teams have their way, a lot will be different.
Currently, NASCAR teams are dependent on sponsorship revenue. That’s far different from most major-league sports which receive a large portion of tv revenue.
NASCAR is unique as the teams don’t own the stadiums they compete in. Instead, there’s another party involved to divide the pie. ISC [Owner by NASCAR] and Speedway Motorsports LLC own a bulk of the tracks on the NASCAR schedule and they receive the largest portion of revenue, by far.
In June, the newly formed Team Negotiating Committee presented a proposal to NASCAR. That proposal suggested that teams get a much higher portion of the tv revenue.
NASCAR gave them a response only last week. That response hinted at a slight increase in revenue but it was more focused on more cost-saving measures for the teams.
That response isn’t what the teams were looking for. They’ve since voiced frustrations and stated they are ‘far apart’ from a new deal.
“We’re very far apart,” Jeff Gordon stated.
NASCAR released the following statement:
“NASCAR acknowledges the challenges currently facing race teams. A key focus moving forward is an extension to the Charter agreement, one that will further increase revenue and help lower team expenses. Collectively, the goal is a strong, healthy sport, and we will accomplish that together.”
Negotiations are ongoing. Big changes are expected to the business model by the 2025 season.
Cost saving measures
At the start of the 2022 season, NASCAR released the Next Gen car. It’s a spec chassis, identical from team to team.
The whole idea of the car was to save money on the teams as well as level the playing field. It certainly leveled the playing field as NASCAR has had 19 different winners in 2022.
However, it remains mostly unclear if the teams have saved a significant amount of money. Teams go through parts at a much higher rate than year’s prior. 23XI-Racing co-owner, Denny Hamlin recently stated that each car needed a new underbody after every race, to the tune of $50,000.
Current NASCAR tv revenue
What is the current tv revenue pie?
Team Negotiating Committee
President RFK Racing
Co-Owner 23XI Racing
President Joe Gibbs Racing
Executive Director Race Team Alliance
Vice Chairman and Co-Owner Hendrick Motorsports