How does NASCAR make its money? Everything you need to know

Over the years, NASCAR has become one of the most prominent forms of motorsport, and surely the most elite stock car racing competition. Thanks to its extreme popularity in the United States and around the world, it and its related teams garner huge interest and, at the same time, draw millions of dollars in revenue.

Just like any other sport, it must make money, survive, and thrive. And it does. With that said, one might wonder what its model is to run the sport. Well, the sport has different sources to earn revenue and it's not just about races.

From sponsorships, licensing, and broadcasting to merchandising and ticket sales, there are many. Here is a detailed list:

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Sponsorship deals:

NASCAR and its teams do the complex work of finding sponsors that pay a hefty sum to showcase their brand in hoarding, cars, and banners throughout the season. They use digital tools to explain what the sponsors would receive in return; the exposure.

Some renowned sponsors are Xfinity (sponsors second tire Stock Car racing), Goodyear (tire sponsors), Toyota, Chevrolet, and Coca-Cola. While it's hard to reveal the exact amount these companies pay, one can expect the amount to reach hundreds of millions of dollars.

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Broadcasting:

Broadcasting is the highest sector for profit in NASCAR. As per report, the broadcasting deal in 2025 will hit $1.1 billion a year in 2025 after the recent deal. It reportedly signed a $7.7 billion broadcasting deal with media houses such as Fox, NBC, Warner Bros Discovery, Amazon Prime, and TNT.

The demand for broadcasting has increased significantly over the last few decades. From 2001 to 2006, yearly broadcasting rights were $400,000, and it increased to $600,000 per year from 2007 to 2014. The demand saw a 37 percent rise from 2015 to 2024 when NASCAR agreed on $820,000 per year.

And the current deal, which stands at $1.1 billion a year, has seen a staggering 40 percent increase. The current deal will run from 2025 to 2031. Notably, this new broadcasting deal was a cause of concern for Cup Series teams as 23XI Racing and Front Row Motorsport did not agree to the latest Charter deal, and they have filed a lawsuit against NASCAR recently.

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NASCAR ticket sales:

Ticket sales and event management are one of the biggest sources of revenue. It includes tickets for races throughout the season around various tracks, fun activities for fans around race tracks, concerts, meet-and-greet with drivers, food, and other sources of entertainment.

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Licensing and merchandising:

Licensing is one of the key areas where NASCAR and its teams make huge revenue. They license the use of official logos, colors, driver's and car images, team t-shirts, and wearables and allow them to be sold in dedicated stores and online sites. Fans purchase them and add to the profit.