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Dave Alpern of Joe Gibbs Racing gave a glimpse into NASCAR's finances as he explained how the "purse" is paid to the teams and what procedures are followed. The prize money paid out to teams is sometimes referred to as the "purse," and is paid both weekly and at the end of the season as bonuses.
Alpern revealed that the teams are paid a fixed monthly to pay their drivers and other crew members. Additionally, the teams are also paid on a weekly basis based solely on their performance.
"There's a weekly purse that's paid out based on our finish in each race," he said in an Instagram post. "We get that paid monthly by NASCAR and so we pay our drivers and any bonuses out for those."
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He further explained that they are given an annual bonus that is based on the teams' position at the end of the season. Along with that, there are payment buckets that the sport pays once a year.
"And then we also get a bonus at the end of the year based on our end of the season's finishing and based on the other buckets which are historical and fixed. Those get paid out once a year and get distributed at the end of the season."
Monetary benefits in the sport are essential for teams as it can be extremely challenging to run crews with hundreds of members and maintain such high-performing cars throughout the 36 races of the year. The Charter system, which guarantees a car's entry in all races, has helped the teams through this as they attract more sponsors, and the revenue generated by NASCAR is also distributed.
23XI Racing and Front Row Motorsports gain huge win in legal war with NASCAR
Earlier this year, NASCAR set a deadline for all teams to sign the new Charter Agreement for the 2025 season. It was reported that multiple teams in the field were not satisfied with the Agreement as they felt the need to get a larger share of the revenue generated.
However, after the deadline, all but two teams didn't sign the agreement; Denny Hamlin and Michael Jordan's 23XI Racing, and Front Row Motorsports. These two teams then filed an anti-trust lawsuit against the sport for "Monopolistic Practices" and other similar issues they faced.
After the lawsuit, there was a possibility for both teams to fall out of contention as they hadn't signed the Charter Agreement. However, a US District Court recently granted the teams a preliminary injunction that will allow them to race in the 2025 Cup Series season as Chartered teams. This will allow them to be a part of the competition and also ensure that they have sufficient funds to maintain their cars.
