How do NASCAR drivers get paid? Understanding key details about their income structure

The income of a NASCAR driver is based on multiple factors like their performance, sponsors, popularity, etc. The compensation can go as high as $15M-$20M per year to as low as just a few hundred thousand dollars per year. The income is based on three major payout options, i.e. the base salary, the race payout, and the sponsorship.

Up until about a decade ago, the data regarding the team purse for every race was publicly available. However, the system went away with the implementation of the charter system. The current system guarantees a race spot to the teams with charters, making the race payout situation largely in their favor, and the part-time entries getting a smaller slice of the money pot.

Let's have a look at all the factors in detail that affect how and what the drivers get paid.

The Base Salary

This is the salary decided and mentioned in the contract when a driver joins a team. This is the salary that the driver will receive irrespective of whether he finishes a race, or where he finishes. The base salary also includes the compensation for the driver to take part in the pre and post-season tests.

NASCAR: Go Bowling at The Glen - Source: Imagn

However, the culture of a base salary is on its way out with NASCAR teams struggling with finances as major manufacturers are pulling out of the series. The Dale Earnhardt and Richard Petty era was the golden era when manufacturers wanted to invest in the sport and the base salary was in the millions.

Now, the drivers have to pay to race or find a sponsor for the race in return for a spot on the car. Yet, some of the biggest names in the sport like Kyle Busch, or the teams that secure full-time sponsorships for a whole season still follow the base salary method.

The Race Purse/Payout

For every NASCAR race, there is a total payout divided between the teams depending on where they finish the race. The higher a team finishes, the bigger the payout they get. This purse is then divided between the employees, the team shareholders, and the driver.

NASCAR Xfinity: Sonoma 250 - Source: Imagn

The payout for a driver is dependent on the terms of the contract and on the performance of the driver during the race. For some races, the payout can be as high as $2 Million for the winner, which in turn acts as an incentive for the drivers to push for a better result.

Sponsorships

The sponsors don't only write a check to the team, but there are also clauses for the driver/car they're sponsoring. A win bonus might be included in the contract paid by the team, the sponsorship, or both.

In case the sponsor is brought by the driver, the driver can have economic benefits from the deal rather than just getting the race seat. The drivers also partner with multiple brands across the season which earns them a handsome amount.