NASCAR Likely Set To Extend Charter System Four More Years
NASCAR teams are nearing an agreement with the sanctioning body to extend the sport's charter system, according to sources, and an announcement of the renewed accord appears to be imminent. The initial five-year term of the charter agreement, running from '16-20, had the option for a four-year renewal period that would cover '21-24. The charter system has become the sport's governing contract between teams and NASCAR, and there are 36 charters that effectively serve as a franchise position for a car, guaranteeing certain revenue streams plus a starting position in every race. Sports Business Journal last August reported that NASCAR had to inform teams of the terms of the renewed agreement by Sept. 1, and that teams had to inform NASCAR of whether they would accept the terms between January and March of this year. Sources in recent months had said that the sides were moving toward renewing the agreement, which is a necessity for any serious team because running without a charter would leave a team with only a fraction of the guaranteed NASCAR revenue it would get by having one.
MONEY MATTERS: The Athletic first reported this weekend that teams are nearing an announcement this week on the renewed charter, which it says will include slightly better financial terms for teams with a 1.5% increase in revenue and $2.8M in money previously directed to non-charter teams now re-directed toward charter teams. That $2.8M was previously the total amount doled out to non-charter teams under the fixed owner's plan portion of the charter agreement, according to information reviewed by THE DAILY, meaning that the sport now is further moving to incentivize owners coming into the sport to do so via buying a charter, as running without one will leave a team at an even greater financial disadvantage starting in '21 than under the prior terms of the charter.