Brad Keselowski is looking to expand RFK Racing to a 3 car team; Currently, “it’s not possible”
Many teams are looking to expand. 23XI Racing, RFK Racing, JR Motorsports and even Trackhouse Racing have floated the ideas of expanding. In most of those case, their all held back by the same hurdle.
Expansion basically requires a NASCAR charter. Despite wild cash offers, charters are not for sale.
Charters were introduced nearly a decade ago. 36 of them were given to teams at the time, a way of adding franchises and value to the sport.
A charter holder is guaranteed entry into every NASCAR Cup Series event. And, they’re also paid money based on race results than non-charter teams.
In order to make it in this sport, a charter is required.
Only a few years ago, these charters were being sold for another $1 million. In recent years, the listing price grew exponentially. And recently, interested buyers have stated that the cost might be somewhere near $30 million.
NASCAR business model is set to change
But, with that offer price, you still might get rejected…
Teams are holding onto their franchises. They’re waiting to see what will happen with the NASCAR business model, in the very near future. The results of a new tv contract will change the value of a charter overnight.
Teams have been calling for a larger piece of the pie. Specifically, the tv revenue pie. Initially, calling for more money wasn’t going well for the teams.
The NASCAR Cup Series has tv agreements with both FOX and NBC. Each of those contracts are set to expire at the end of the 2024 season. But an agreement will likely be announced this year.
An offer is on the table for both of those networks to renew. And, if it’s not renewed, NASCAR will be shopping their content to the highest bidders, which could net substantially larger value than the previous deal.
Currently, the TV revenue pie favorites the NASCAR tracks that host the events. 65% of the tv revenue goes directly to the tracks, 10% goes to NASCAR and the other 25% goes to the teams.
NASCAR teams have been negotiating for a much larger cut of the revenue. They’ve said that sponsorships fund modern race teams and the teams have said that model isn’t sustainable moving forward.
As stated, at first NASCAR and teams were “far apart” in terms of negotiations. But today, teams and NASCAR are closer to reaching an agreement, with a larger piece of the tv revenue being a likely result.
Brad Keselowski comments
“I think we would definitely like to do that,” Brad Keselowski stated from the MIS Media Center of adding a third car to RFK Racing.
“It’s easier said than done. For the time being, we’re quite satisfied with the relationship we’re building with the Rick Ware Racing cars. Which allows us to add some depth to our roster without going out and buying another charter.”
“It’s maybe well documented, maybe not, I don’t know, it’s almost impossible to buy a charter. Nobody is selling one.”
“Really, no matter what your offer is, you can’t buy one. There’s been some people knocking on the door with a lot of money.”
“The answer is, ‘Your money’s not good, anywhere.’ “
“Everybody on the team owner side wants to see where the charter agreement goes. And where the TV rights deal goes.”
“So, there’s no charters actively for sale right now. It will be interesting to see how that plays out over the next 24 months, when this thing gets announced.”
Keselowski added, “Ultimately, we would like to get to a third car. It has to be possible and right now, it’s not possible.”
2023 NASCAR Charter List (By Team)
Team | # of Charters | Car No.
Stewart-Haas Racing (4)
Hendrick Motorsports (4)
Joe Gibbs Racing (4)
Team Penske (3)
Trackhouse Racing (2)
Richard Childress Racing (2)
Kaulig Racing (2)
Legacy Motor Club (2)
23XI Racing (2)
RFK Racing (2)
Spire Motorsports (2)
Front Row Motorsports (2)
Rick Ware Racing (2)
Wood Brothers Racing (1)
Live Fast Motorsports (1)
JTG Daugherty Motorsports (1)