New tv deal likely to help NASCAR teams but that won’t be in play until 2025
NASCAR teams pull most of their revenue from sponsorship agreements. It’s a model that isn’t used in most major sporting sanctions, outside of auto racing.
2025 will bring big changes to NASCAR. A new TV rights agreement will be in play. At the same time, a new charter agreement with the teams.
Half of those changes are already set. Yesterday, NASCAR announced a new tv deal, splitting NASCAR Cup Series events between four networks.
New NASCAR TV Deal: Fox, NBC, Amazon Prime, TNT through 2031
The value of the tv partnership is estimated to be a significant increase over the previous deal. And, a portion of that revenue will be distributed to the teams.
How much? The current charter agreement calls for 25% of the tv revenue to go to the teams. However, a larger portion of the pie is likely to be sent to teams with the 2025 charter agreement.
Negotiations are still ongoing between the teams and NASCAR.
NASCAR teams looking for more money; Series issues statement
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“Our race teams by and large are losing money at the Cup level and that is something we need to solve for them,” Steve Phelps told Speed Sport.
“We can solve that with two key pillars. One is to make sure that they are getting additional revenue. They are interested in getting more money from the sanctioning body and the tracks through the purse and that is something we need to do.”
“The only way we can do that is to have increases in your media rights, which is what we are doing today.”
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