Cup Series Teams Accuse NASCAR Of Not Sharing Licensing Agreements, Claim $7.7 Billion Broadcast Deal ‘Unprofitable’

Published 02/13/2024, 1:56 AM EST

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USA Today via Reuters

When NASCAR signed the whopping $7.7 billion-worth TV deal, it was seen as a game changer, and it may yet be. But if recent developments are to be believed, things aren’t as good as they seemed on paper, especially for the teams. There is less than a week left before the start of the 2024 Cup Series season and NASCAR has not been able to reach an agreement with the teams about the revenue-sharing model from the massive TV deal.

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The new TV deal, which will start in the 2025 season, will allow streaming platforms to exclusively broadcast a number of races per year for the first time in the sport’s history. Broadcasting rights are also shared between two of the biggest networks in the world today, FOX and NBC with the former having the Daytona 500 and the latter having the championship race.

NASCAR, teams at an impasse as parties fail to reach new charter agreement

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But a new TV deal was always going to bring new challenges in motorsports, where finances matter a bit more than other sports. Teams have to rely on revenue for operations and if they feel they’re not being fairly compensated, there will be a problem. That is exactly what NASCAR is reportedly dealing with at the moment as per Associated Press.

As per the report, teams turned down extending talks with NASCAR in February over a new charter agreement, and with the current one running out at the end of this year, there is not a lot of time left. If things do not improve, there is a possibility of these teams racing in a different competition, but that would not be very feasible for any of the parties involved.

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It seems like the negotiators on the teams’ side aren’t happy. The TV deal, which once seemed like one of the most lucrative agreements NASCAR has ever signed, does not seem that way anymore. They also believe that some teams are getting shut out of licensing agreements that were supposed to be shared.

The bottom line is this – nobody’s happy. NASCAR today is one of the biggest motorsports in the world with several teams racing in its competitions. If the sport sees an exodus of teams due to the failure to come to a middle ground, things will not look good in the future. Cup Series racer and team owner Denny Hamlin recently slammed NASCAR publicly over this debacle.

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Denny Hamlin slams organizers for delaying talks

The 23XI Racing co-owner, who is known for being outspoken, went in on the stock car racing organization on a recent episode of the Actions Detrimental podcast. Hamlin said that the team owners wanted to have this discussion 2 years ago but NASCAR was simply not inclined to have those talks at the time. This is why now, there is a time crunch and the situation is no better than what it was a year ago.

“We tried to start these conversations two years ago and it’s just been delay, delay, delay. So now here we are at the end of the rope. Do I believe we are closer to a deal now than 12 months ago? I don’t think so,” the 43-year-old said, perhaps echoing the feelings of several team owners across the country who are equally as disappointed as the Cup Series star.

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The situation is not ideal at all as per the AP report. It may even boil over to something so unfortunate that it completely overshadows the racing action of the 2024 NASCAR season across all competitions. A solution needs to be found and fast but the way things are going, that will probably be tough going.

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Written by:

Nilavro Ghosh

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Nilavro Ghosh is a NASCAR Writer at EssentiallySports, where he is known for his creative yet easy-to-read writing style. Before taking up his role as a sports journalist at ES, Nilavro has written for some of the top publishing houses, like The Telegraph. While most journalists stop at covering live events and taking the news to the readers, Nilavro goes the extra mile to give fans a platform for them to express their thoughts through his 'race reaction' pieces.
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Edited by:

Vishav

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