NASCAR is slowly approaching the required signing of several new agreements as the TV and charter deals are set to expire at the conclusion of the 2024 season. Due to this fact, talks are ongoing in several areas.
One of those areas includes the charter agreement which ties to how the charter market is currently running. No team can reasonably jump to the NASCAR Cup Series since prices are so high. This also relates to the TV deal.
The revenue distribution model has been a major topic of conversation as NASCAR and the teams continue to work on an agreement. However, a big situation has occurred that will shock people inside and outside of the sport.
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Team owners boycott meeting with NASCAR as talks continue about the financial model
NASCAR had a regularly scheduled meeting with the team owners on Wednesday but only one side showed up to the party. According to Sports Business Journal’s Adam Stern, NASCAR team owners collectively agreed to boycott the meeting with the sport.
This comes as the revenue talks between the two sides have made little progress. It has previously been reported that teams are demanding a better financial model and believe the sport has not been fairly negotiating with them.
Right now, the teams receive 25% of the television revenue while the race tracks receive a mind-boggling 65% of the revenue. NASCAR then receives the remaining 10% and the team owners don’t believe this is a fair split.
Jeff Gordon, the co-owner and Vice Chairman of Hendrick Motorsports, has previously said the organization did not make any money during the 2022 season and has not for some time now. This is alarming as Hendrick Motorsports is the sport’s most well-known team.
Plus, organizations heavily rely on sponsorships as 60-80% of their revenue is generated from them. It is a very high number as other sports don’t even get above 20%, such as MLB and the NHL.
NASCAR released a statement after the news of the team owners’ boycott was reported by Stern and other major outlets on social media.
“NASCAR is committed to open and productive dialogue on a regular basis with all industry stakeholders. We remain committed to continuing discussions in the spirit of collaboration and with the shared goal of growing our sport for the benefit of all stakeholders.”
NASCAR’s statement after team team owners’ boycott
According to FOX Sports’ Bob Pockrass, Wednesday’s meeting was not about the revenue distribution model. The boycott was a message about the need and desire to make progress on talks about the financial model.
This is a major situation that will be worth keeping an eye on for the foreseeable future. It is clear that NASCAR teams do not receive a fair share. There is no reason why up to 80% of a team’s revenue has to rely on sponsorship.
It hurts the racing product as the best drivers don’t get to display their talent and pay drivers become more and more common. Stay tuned for the latest updates on NASCAR and the team owners’ talks about the financial model.