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Amid the stalled charter negotiations, NASCAR journalist Adam Stern recently claimed that the governing body could reportedly ban the sovereign wealth funds. According to Stern, this rule has been included in the agreement for investments in the private equity sector.
With the charter agreement set to expire at the end of the 2024 season, NASCAR's governing body is yet to finalize the deal as the teams and drivers inch toward the playoff rounds.
NASCAR and Cup teams haven't reached common ground on account of disagreements such as permanent charters, governance, and sharing revenue possibilities.
According to the report from Adam Stern, teams such as Joe Gibbs Racing, Trackhouse Racing, and RFK Racing have been in the mix as investors in the private equity investment around the agreement. Stern, in his report, wrote (via Sports Business Journal):
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"NASCAR is negotiating a new charter agreement with teams and — showing how active the private equity sector is — drafts include rules for such investments. The guidelines could include a ban on sovereign wealth funds in NASCAR, a maximum percentage that a fund can acquire and language pertaining to who the main governing partner — or control person — can be."
Stern also reported that the charter negotiations are "ongoing and fluid", hinting that NASCAR has moved forward with this agreement. However, cash infusion from such foreign investment has its pros and cons.
Like, in this case, banning the Public Investment Fund, the sovereign wealth fund of Saudi Arabia, would keep the big money out from owning the sport entirely, like Liv Golf. On the other hand, including such outside investment could include extensive business experience and strategic knowledge.
Teams playing hardball as NASCAR executives give green light to another Netflix documentary
NASCAR teams are eyeing a withdrawal from the second season of the NASCAR documentary on Netflix. Teams and their owners are only willing to cooperate if the governing body finalizes the charter agreement before the docuseries' production.
The first season of 'NASCAR: Full Speed' covered the behind-the-scenes of the regular season finale and the playoff round of the 2023 NASCAR Cup Series.
According to Sports Business Journal's Adam Stern:
"Some teams have considered not participating in a documentary if a deal isn’t done by the playoffs, others disputed that they would hold out, and it’s possible the sides could still find a resolution before the playoffs begin to allow for the docu-series to happen."
As soon as NASCAR ends its two-week hiatus, only four races remain until the first playoff round scheduled on September 8 at Atlanta Motor Speedway. If the docu-series doesn't come into play for the playoff round, the series would cover the lifestyle surrounding the drivers during the offseason.
However, the bigger question and announcement remain regarding the stalled charter agreement.
