What happens to the fine money in NASCAR? Here's what you need to know

Apart from close, bumper-to-bumper style racing on the racetracks and large purse values, NASCAR is also renowned for its strict penalty system and high fines. However, fans often wonder what happens to all the fine money collected by the sanctioning body.

There are three main types of penalties applicable in NASCAR: pre-race, in-race, and post-race. These are further divided into three sub-categories, namely L1, L2, and L3. Pre- and post-race penalties are generally applied after the inspection of vehicles before and after qualifying and racing, while in-race penalties are reserved for actions by drivers and pit crew during the race.

Since 2008, all fine money collected by NASCAR has been placed into the Drivers Points Fund and subsequently donated to the NASCAR Foundation to support its charitable initiatives.

As for the L1 category, penalties can range from point deductions of up to 75 points for the drivers, suspension of crew members for up to three races, and monetary fines of up to $100,000. L2 penalties are more severe, with point deductions up to 120 points, suspensions up to six races, and fines up to $250,000.

L3, the most severe penalty in NASCAR, involves a point deduction up to 180 points, a suspension of at least six months, and a fine up to $500,000. These are reserved for illegal modifications to the engine block, ECU, fuel injection system, compression ratio, or use of performance additives like nitrous oxide.

The 2024 Cup Series season has seen dramatic moments, some resulting in penalties with significant financial and championship implications.

Here's a look at the top 5 penalties issued by NASCAR so far this season:

#5. Carson Hocevar's Nashville penalty

Carson Hocevar was penalized for intentionally spinning Harrison Burton at Nashville under the caution flag. He was punished with a 25-point deduction and a $50,000 fine.

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#4. Joey Logano's Richmond repercussion

Joey Logano was handed a $50,000 fine for his unsportsmanlike conduct in the pitlane. He was reprimanded by marshals after exiting the race car. While his anger against Austin Dillon was justified, his method of expressing it could have potentially led to a more drastic end had Logano lost control while doing the burnout.

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#3. Bubba Wallace's cool-down lap shenanigans at Chicago

During the cool-down lap at Chicago, Bubba Wallace hit Alex Bowman's car, causing it to crash into the wall. Wallace did it in retaliation for Bowman spinning him earlier in the street race. He was subsequently handed a $50,000 fine.

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#2. Ricky Stenhouse Jr.'s brawl with Kyle Busch after the All-Star race

Ricky Stenhouse Jr. received a $75,000 fine for hitting Kyle Busch during a post-race altercation. Two of his crew members were suspended for four and eight races, respectively, while his father, Stenhouse Sr., was indefinitely banned from NASCAR venues.

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#1. Denny Hamlin and Joe Gibbs Racing's massive L2 Penalty for engine violation

Joe Gibbs Racing, Denny Hamlin's team, received one of the largest fines of the 2024 season. Hamlin was penalized with 75 points in the regular season and 10 Playoff points, impacting his Playoff position. His crew chief, Chris Gabehart, was fined $100,000 for violating engine rule violations.