If NASCAR were a classroom, the France family would be the head, principal, and owner of the building, all rolled into one. Since Bill France Sr. first drew up the rulebook in the late 1940s, the family has run the show their way. From Daytona to Darlington, their fingerprints are on nearly every track that matters. But here’s the twist: unlike the NFL or MLB, NASCAR teams aren’t franchise owners. Rather, they’re more like tenants in a very exclusive club.

To make the grind worth it, NASCAR rolled out “charters,” giving teams guaranteed race spots and a share of the prize money. In theory, it brought stability. In practice? It’s sparked one of the sport’s most complicated tug-of-wars between those who own the track and those risking it all on it. And that tension just hit another gear with the NASCAR lawsuit. But recently, NASCAR President Steve O’Donnell explained why things are the way they are when it comes to NASCAR charters.

Ongoing debate over permanent team security in NASCAR

The contentious lawsuit between 2 teams (23XI Racing and FRM) and NASCAR has forced the sport’s charter system under a harsh spotlight. Charters, which guarantee a spot and stable revenue for teams, form the backbone of every Cup Series operation. Yet their lack of permanence is a major source of unrest for owners. Dale Jr. laid out the dilemma: “I need it to be permanent because I don’t know that you could turn it off.”

With charters now trading for up to $40 million and delivering guaranteed payouts of $10–15 million a year, teams view them as vital investments. However, they also worry that NASCAR can pull the rug out from under them whenever an agreement expires. NASCAR president Steve O’Donnell responded, “We looked at it right or wrong, you need a renewal term. You don’t know what the next TV deal could be. So we wanted to be able to negotiate.”

NASCAR generates the bulk of its revenue from broadcast contracts. 13 out of 15 full-time teams currently receive about 49% of the media rights money. This is a 62% jump from the previous deal! O’Donnell and Series execs argue that renewal periods preserve NASCAR’s flexibility, allowing adjustments to budgets and payouts if future media or sponsorship deals fluctuate.

Dale Jr. countered, “Why couldn’t you just do that and just say, ‘Hey, you’re getting a percentage of the TV deal, whether it’s $10 or $800 million, you’re getting this percentage of it. And if it goes down, fails…we all fail.’” Team owners contend that a permanent charter would secure their equity and guarantee proportional revenue, creating true long-term stability.

Open teams (those without charters) become central in this debate. The sport has always allowed non-chartered “open” teams, which can miss races and receive less revenue. As O’Donnell noted, “There’s some open teams too, that part of the sport’s been built on.” Protecting opportunities for these independents complicates any push for permanent charters. Just last season, 12 open teams made starts throughout the NASCAR Cup Series season. This year, 13 teams have entered a combined 23 drivers and 14 different car numbers into 29 of the season’s 32 races.

While NASCAR has agreed to a long-term charter agreement through 2025, its leadership and teams remain open to refining the system. As O’Donnell admitted, “Do we want to look at are there ways we could tweak it and both sides say how can we make this better? One thousand percent.” A permanent solution may be distant. But ongoing negotiation aims to balance business security and the sport’s competitive roots for all stakeholders.

NASCAR president talks about the playoff format

NASCAR President Steve O’Donnell has openly acknowledged that the current playoff format, with its winner-take-all finale, could deter the sport’s next generation of superstars. Criticism of the format has grown considerably in recent years, particularly from drivers and veterans who argue it doesn’t always crown the best overall performer.

O’Donnell shared during a recent interview that feedback from standouts like Christopher Bell has led him to reflect deeply on its impact. “If I achieve ten wins in a season, but then in one race, a few others interfere with me, I don’t become the champion. This has happened repeatedly over four years.” O’Donnell noted the risk of young talent reconsidering their NASCAR ambitions if so much hinges on a single unpredictable race.

NASCAR’s current playoffs guarantee drivers a postseason berth with a win. However, it also resets points to create drama in elimination rounds, all culminating with a one-race title showdown. While this system brings excitement and unpredictability, O’Donnell admits it might shortchange long-term excellence.

“You roll off four championships in a row with eight wins and a body of work, whatever that may be, that’s good for our sport. People are talking about him,” he said, emphasizing the value of sustained dominance for producing household names, as seen with legends like Jimmie Johnson and Jeff Gordon.

Though no immediate changes will take effect before the end of the 2025 season, O’Donnell confirmed a committee is exploring major updates. NASCAR will possibly be moving away from the single-race decider to better reward a season-long body of work. Details are expected after the season wraps, signaling NASCAR’s willingness to address both fan and driver concerns for the future.