Kenny Wallace discusses why NASCAR is so expensive, including the origins of the Charter system

Kenny Wallace shared several ins and outs of NASCAR, including why the stock car racing league has become so expensive. In an X (formerly Twitter) post, Wallace said that the teams have been spending a huge chunk of money in pursuit of speed, which he believes is an ongoing issue in the sport.

Wallace is a former NASCAR driver who won nine races in the Xfinity Series. The 61-year-old also worked as an analyst for FOX Sports before opening a social media channel where he regularly shares his thoughts on the latest from NASCAR.

When Wallace was asked whether the charter system created the need for more sponsors, he argued the sport has gotten so expensive that teams now have six or more sponsors. It is a departure from the old days when teams used to run with one sponsor only.

The former NASCAR driver explained that teams need sponsorship money to keep up with the costs. When he visited Team Penske about two years ago, he learned that teams make the cars so light that the body would be scrapped after one race.

Of note, NASCAR holds 36 races in a single season – 26 regular-season races and 10 playoff races.

Wallace said:

“They were making these cars very light, very efficient, to where they were only good for one race. Yes, one race.” [4:50]

The Missouri native added that the stringent inspection by NASCAR prompts the teams to remake their cars after every race to ensure they pass the inspection.

“And at times, they were running one car per race because NASCAR’s tolerance level, their inspection process was so tight, they were using lasers to measure it, and after one race, the car was already done.” [6:20]

Kenny Wallace added that teams would use tungsten over lead to lower weight. However, the metal was said to be about 10 times more expensive than the aforementioned alternative.

He concluded by saying:

“Just expenses, inflation, what we’re going through right now. The cost of metal, running more races… engineers, the cost of engineers. So the sport spiraled out of control because of the cost to go faster. Engineers running one car per race, team airplanes […] And here’s the reason it got out of control […] because sponsors could not keep up. The sport got so expensive that you could not find a sponsor to keep up with the cost.” [7:28]

Aside from the cost, Wallace also discussed the origins of the charter system. He argued that the system benefits team owners by allowing them to negotiate charters. This prevents the case of previous owners like Junior Johnson where they were left with nothing but a ‘Brick and Mortar’ to sell.

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Kenny Wallace shared how he built a $9 million fortune from humble beginnings

Kenny Wallace shared the story of his humble beginnings before he was able to build a million-dollar fortune. Wallace, the younger brother of Rusty Wallace, recalled working as a sewer cleaner and cashing soda bottles at 7-Eleven or McDonald’s to make money.

In his previous “Coffee with Kenny” video on X, the former NASCAR driver said:

"Because of my early days of not having any money […] When I got my first money whether it's my first job repairing vacuum cleaners or cleaning sewers out, you could find me in the city streets, in St. Louis." [4:30]

Wallace also revealed that he made his fortune by saving all his money and investing in real estate and the stock market at the perfect time.