NASCAR’s battle with its teams appears to be a well with no bottom. As per the latest revelations escaping the promotion’s headquarters in Daytona, NASCAR attempted to make right the concerns that were circulating over charter offers and found little success. The situation came after a recent meeting between the promotion and the Race Team Alliance, an organization of the 16 NASCAR teams. The alliance was formed in 2015 and includes the likes of Joe Gibbs, Jack Roush, Jeff Gordan, Joe Custer, and Richard Childress on its board.

Since the teams voiced their frustration in 2022 about obtaining permanent charters instead of renewable ones, there has been no viable common ground found. Last week’s gathering too has appeared to be a futile effort at that.

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Chaos over money has become the new normal in NASCAR’s top tier. The disgruntlement between the entities began in 2022 when team owners expressed their displeasure with the existing business model by which the promotion took home the largest piece of the financial pie, leaving its teams to survive using external sponsorships. Continuing over a few months, the unsettlement led to members of the Race Team Alliance sending a letter to NASCAR last summer, that essentially warned that the acceptance of a new media revenue breakdown would depend on franchise charters becoming permanent.

Reporting on the latest meeting, Sports Business Journal’s Adam Stern wrote, “The term for the new media rights deals isn’t until 2025; it’s not yet clear when NASCAR will have those deals done by, but it could be by late this year.” Holding off on its TV deal means, the teams will have to wait until then to see the end to the charter turmoil that has been going on.

Though the letter that was sent in the summer hinted at the acknowledgment of the grid over the financial split of the promotion’s new deal with its media partners, it made clear that acceptance of the financial split would depend on charters becoming permanent.

The demand from the Race Team Alliance to the organization

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The current issue is that the $820 million revenue that the sport receives every year from its media deal is not split fairly. As laid out by the existing agreement, racing teams receive 25% of the money. Tracks get 65% and NASCAR keeps 10%. Considering that the promotion owns most of the tracks on the schedule, it is quite obvious that it is cutting a few corners to receive a better part of the revenue.

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Nevertheless, with the media contract ending in 2024, teams were largely expecting the new terms to be much more favorable to them. As reported by Adam Stern, more than half the teams do have come out satisfied with the clarity provided over the new split by NASCAR’s president Steve Phelps in the latest meeting. However, the issue of the permanent charters is still a standing out point.

In its summer letter to the promotion, the collective voice of the Race Team Alliance said, “We have seen the market for Charters rise since initially issued, but there is currently no real market due to the uncertainty surrounding the pending renewal process. In order to continue to invest in our Teams and the sport as a whole, we need to build long-term value in our Charter ownership that is stable, predictable, and permanent.”

The letter was signed by the representatives of each of the 16 teams. Among them were those from Joe Gibbs Racing, Hendrick Motorsports, and Richard Childress Racing. With both NASCAR and the alliance refusing to comment on the topic for now, hopes are that an agreement will be reached sooner than later.

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