Roger Penske-led IndyCar adopts NASCAR-inspired charter system, Indy 500 spots not guaranteed

The NTT IndyCar Series has announced a new charter system for the 2025 season, a similar model to the charter system in the NASCAR Cup Series. The historic announcement came in a press release by the series on Monday.

In a post by IndyCar on X (formerly Twitter), the series announced that the charter system has been put into effect immediately with 10 teams accepting charters for 25 entries.

The IndyCar Series, owned by longtime racing owner Roger Penske of Penske Entertainment Corp., has limited charters to three per team. Among the teams that accepted charters include A.J. Foyt Enterprises, Andretti Global, Arrow McLaren, Chip Ganassi Racing, Dale Coyne Racing, Ed Carpenter Racing, Juncos Hollinger Racing, Meyer Shank Racing, Rahal Letterman Lanigan Racing, and Team Penske.

Mark Miles, President and CEO of Penske Entertainment Corp., said in the release that the charter system is important in aligning the future of sports. He added:

"I want to extend my sincere appreciation to our team owners for their collaboration and ideation through this process. Ultimately, we're pleased to have a system in place that provides greater value for our ownership and the entries they field."

The NASCAR Cup Series adopted the charter system in 2016. IndyCar's charter system will be much like NASCAR's, as owning a charter gives teams a guaranteed entry in each IndyCar race, except for the Indianapolis 500.

Owning a charter qualifies a team for the Leaders Circle program as well, which grants the top 22 finishers in the series $1 million. Per the release, the initial charter agreements will expire in 2031. IndyCar teams, like in NASCAR, have the opportunity to sell charters.

Chip Ganassi, current IndyCar owner and former longtime NASCAR owner, said in the release that he believes the announcement of the charter system is a monumental moment in the IndyCar Series.

“When you look back in the modern era of IndyCar racing, you will look at a few important moments, the first being the unification of the sport, the next being Roger Penske buying the IndyCar Series and (Indianapolis Motor Speedway), and I truly believe the third will be the charter system.”

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Penske Entertainment proposed the charter system to IndyCar last month

The wheels started turning for a charter system to be implemented last month. In an article by Nathan Brown of the Indianapolis Star, it was reported that Penske Entertainment had sent formal proposals of a charter agreement to IndyCar teams. At the time, IndyCar officials said there was no timetable for when the deal would be done.

The series had been trying to come to a deal on an entry system for the past year. Once the proposal was sent out to teams, it was reported that team owners then took up the agreement with their legal teams or stakeholders.