NASCAR and the teams that compete in the Cup Series are inching closer and closer to a new revenue sharing and charter agreement but significant hurdles remain.
The latest bit of reporting comes from the Sports Business Journal, which on Friday stated that NASCAR and the teams have largely agreed to the financial terms regarding how television revenue and new revenue will be split but differences remain on governance matters.
In other words, as part of this process, the teams want to have a greater voice over processes, rules and every other matter that NASCAR has generally decided independent of the teams that compete in the series.
That’s been a sticking point for quite awhile in addition to teams wanting the charter system to be made permanent so that each car number can build equity like a stick and ball franchise, something that NASCAR has been hesitant to grant, instead wanting each charter system to run concurrent to each television rights agreement.
NASCAR inked a $7.7 billion agreement with FOX Sports, NBC Sports, Turner Sports and Amazon Prime to broadcast races through 2031.
As such, the current charter agreement runs out at the end of this season and the teams must reach an agreement with NASCAR before the 2025 season starts. If an agreement is not met, NASCAR can pull the charters from teams and proceed with races without those teams, while teams that choose to can leave to race elsewhere or in its own a series.
That is an unlikely proposition, because NASCAR needs the stars and cars and the teams need the infrastructure and brand awareness of the sanctioning body. All told, there’s progress but there is still work to be done in advance of the 2025 season.
What do I need to know about this?
What the charter system is
Why it’s a doomsday scenario if a deal is not reached
Teams hired top antitrust lawyer against NASCAR
Jeff Gordon on why the business model needs to change
Michael Jordan says NASCAR will die without charter permanence
Denny Hamlin says teams just want break even revenue
NASCAR’s June offer to teams ‘was worst yet’
Denny Hamlin on why charters need to be permanent
Smaller teams unified with larger teams