A new development as the current charter agreement between the teams and NASCAR will expire this year
NASCAR teams have elected to let charter negotiations with the sanction expire. This comes after previous extensions.
The series recently signed a tv deal for 2025 and beyond. In theory that should have sped up negotiations with teams. However, that isn’t the case.
Teams are currently dependent upon sponsorship to stay in business. They are looking for a larger portion of the tv revenue pie going forward. Currently, teams make just 25% as tracks make 65% and NASCAR holds onto the remaining 10%.
NASCAR President says race teams are losing money
NASCAR teams looking for more money; Series issues statement
Additionally, teams are looking to make the charter system permanent. It was launched as NASCAR’s vision for franchises in auto racing to add value to team owners. That’s been a success in recent years as the most recent charter sale was an estimated $40M. But, the charter system could still be removed under the current agreement.
NASCAR charter sold for $40M to Spire Motorsports; New record
With negotiations expiring, teams are now allowed to hold conversations with series outside of the NASCAR umbrella. Which is a major development.
The current deal expires in less than a year. However, realistically, they have until February 2025 to come to an agreement.
Rumors of a protest have been a part of the discussion in recent months. However, we’ve yet to see that play out on track in any form.
What appears to be out of frustrations, teams made the choice to let negotiations expire. NASCAR does not need a majority or unanimous vote to land a new agreement. However, teams under the Race Team Alliance are acting totally in sync via the newly formed Team Negotiating Committee.
Team Negotiating Committee
Joe Gibbs Racing
President Dave Alpern
RFK Racing
President Steve Newmark
23XI Racing
Investor Curtis Polk
Hendrick Motorsports
Vice Chair Jeff Gordon
NASCAR revenue dropped 50% according to Jimmie Johnson
Denny Hamlin commented recently on negotiations
Hamlin is the co-owner of 23XI Racing. He’s also the driver of the No. 11 for Joe Gibbs Racing.
Just a few days ago, Denny Hamlin provided details on how the negotiations were going:
NASCAR just signed this new TV deal which, you know, it sounds great,” Hamlin stated via his Actions Detrimental podcast.
“Until we know everything about it, we don’t really know how it all flows and everything. We tried to have conversations early, but they didn’t know what the media landscape was going to be. Now that they’ve figured that out, I think they’re in a much better position to transfer that information into what would be a fair, equitable deal for both sides.”
“Certainly, I can’t speak for the TNC (Team Negotiating Committee). They’re the ones who have been in the in-depth negotiations and sitting in rooms with NASCAR for hours on end, but, here we are in the 11th hour again.”
“We tried to start these conversations 2 years ago, and it’s just been delay delay delay and now here we are, we’re at the end of the rope.” There’s certainly some work to be done, right?”
He added, “Do I believe we are closer to a deal now than we were 12 months ago? I don’t think so.”
Now, that has been confirmed as the negotiations have officially stalled.
High Limit Sprint Cars introducing charter system to dirt racing
