NASCAR SEES URGENCY IN GETTING CHARTER DEAL COMPLETED

Amidst continuing negotiations to get a new charter deal signed with NASACAR competitors, NASCAR has signaled it would like to get a deal done before the teams arrive in Atlanta to avoid the talks continuing into the playoffs. It’s still uncertain however if they can pull it off, as while the charter teams have now tentatively agreed on a commitment on revenue sharing from media rights, talks now turn to how much team voices will be considered when it comes to competition rule changes during the next charter term and whether teams can speak freely about other competition issues. Cup star Denny Hamlin has been the most outspoken on the issue, and while it looks as though a lot of teams are ready to sign the deal because of the revenue commitment, Hamlin doesn’t seem convinced as of yet. Today during media day at Charlotte for the sixteen playoff drivers, Denny said, “People have to realize that I made a good living in this as a NASCAR driver, and I chose to invest back into the France family and NASCAR, and they have yet to show me an opportunity where I’m going to get that back.” He has a right to be concerned as Denny Hamlin is not just a driver, he is also of course a team owner heavily invested in the series. From NASCAR’s side, on Kevin Harvick’s “Happy Hour Podcast”, NASCAR President Steve Phelps admitted there needed to be change, but he expressed caution in how it should be approached. “If there’s more money given, teams want to take every dollar and then some and spend it to go fast. Which I get because it’s a vicious cycle that exists. If you don’t go fast, you can’t get sponsorship. If you’re not winning, you don’t get sponsorship.” He went on to add that it’s hard to get sponsorships if you don’t run well and the risk that you’ll lose those sponsorships which could and has led to teams leaving the sport which he reiterated isn’t in the interest of anyone.

The truth is that teams have struggled to turn profits in some part due to the way media rights have previously been distributed. With the way the charter system was initially set up, 25% goes to the team with 65% going to the tracks, and 10% going to NASCAR. But that’s simplifying it somewhat as NASCAR owns roughly 44% of the tracks on this year’s schedule. Obviously there’s quite a bit of overhead for NASCAR but at the same time it’s a huge acknowledgement to hear the NASCAR president admit that there does need to be change as far as the teams are concerned. They can’t keep losing money and keep under the tremendous pressure of having to rely on securing exceptional sponsorship deals in the hopes of breaking even. While securing those sponsorships will always be a priority, not just for the teams but NASCAR themselves, because of the new media rights deal valued at 7.7 billion dollars involving Fox Sports, Warner Brothers, Discovery, and Amazon, everyone in the sport has a chance to get ahead. And though in reality it still remains unclear if NASCAR can get the deal done by the end of the week as time is indeed running out, it is what’s best for business that they do so. And when negotiations begin again in 2031, both sides will be in a much better place to negotiate.