NASCAR’s new charter set to increase last-placed team's share by $3.5 million than previous deal: Reports

Although NASCAR has not conceded to all demands set forth by the teams in the charter agreement, resulting in 23XI Racing and Front Row Motorsports withdrawing their support, it has tried to resolve and augment the remuneration for the teams.

Teams have consistently aimed for four principal objectives throughout the charter negotiations: a substantial increase in revenue share, involvement in governance decisions, a stake in business agreements featuring team or driver likenesses, and crucially, the creation of permanent charters to secure long-term stability.

While the charters have not been granted permanency, and teams continue to have limited influence over rule modifications and governance representation, the issue of revenue share is reportedly resolved. As part of the new arrangement, the teams will benefit from increased revenue following NASCAR's 40% surge in media rights agreements, now valued at $7.7 billion.

The last-place charter earned between $4-5 million annually under the old charter agreement spanning 2016 to 2024. In contrast, this figure is allegedly set to rise to approximately $8.5 million in the forthcoming agreement, which extends from 2025 to 2031. However, it is still uncertain whether this increment will be sufficient to secure the financial well-being of the teams.

Additional unresolved issues persist, such as the exploration of new revenue streams beyond traditional media, the extent of teams' influence over potentially expensive rule changes, and the implications of a new non-disparagement clause included in some of the agreement's recent drafts.

Despite some teams having signed the new charter contract, there remains a degree of restlessness concerning its terms.

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Denny Hamlin's remarks about NASCAR not involving the teams in decision-making are shared by other teams as well

On his Actions Detrimental podcast, Denny Hamlin expressed:

"Yeah, it's a threat. That's if you speak negatively. If they don't like what you say, yeah, they're trying to reserve the right."

The sentiment is now a common concern among teams. 23XI Racing and Front Row Motorsports have yet to sign the new agreement, allowing them the freedom to speak openly. Meanwhile, other teams are apprehensive about their lack of participation in NASCAR's rule modifications or the insertion of new clauses, fearing that they alone may dictate all significant decisions.

Adam Stern from Sports Business Journal voiced similar things on his X handle, noting:

"Concerns that some teams have had with the fresh charter contract include whether they will be limited in having a say over costly rule changes and whether there's new clauses that'll impact their traditional relationships with drivers + ownership of their intellectual property."

Given that NASCAR has already set a deadline with serious consequences for non-compliance, including the potential loss of current charters, the motorsport community is waiting to see what NASCAR will decide on 23XI Racing and FRM charters.