While created to grow and stabilize team values, NASCAR’s charter system also gives team owners a greater voice in the sport while providing them with inside information they’ve never previously seen.
Among many new aspects, a council of team owners has been formed that can officially endorse — or not endorse — changes to the sport, such as new suppliers and modifications to the rulebook. Composed of both owners of chartered teams and those of the sport’s open — or non-chartered — teams, the council will meet at least four times a year and consult with NASCAR on a wide range of issues.
“The change that I believe will have the greatest long-term impact is the creation of the team owner council and the modification to the governance process with respect to competition matters,” Steve Newmark, Roush Fenway Racing president, said in an email. “Although the new governance process doesn’t overhaul the current structure, it represents an evolution and provides for much greater input from the teams, drivers and other constituents.”
Included in that evolution are increased measures of transparency such as annual reports on NASCAR’s ancillary income and a heads up if NASCAR is planning to add a new charter member.
Once a year team owners will get to inspect NASCAR’s audited financial statements related to ancillary rights, including primary rights (television revenue) and secondary rights (most notably digital media revenue). Also, if NASCAR ever considers adding a new charter member during the length of the agreement, teams have a 120-day window to try to entice the prospective owner to buy one of the original 36 charters instead.
“We collectively felt transparency was important for a number of different strategic reasons,” said Brent Dewar, NASCAR’s chief operating officer.
