Nascar teams have opted to allow the deadline for their charter negotiations to expire, according to Sports Business Journal (SBJ).
Confirmed:
- SBJ reports that teams have unanimously agreed to not extend negotiations in symbolic move to highlight their discontent
- Nascar does not need an agreement with the majority of teams for a new charter agreement
Context:
Nascar and the Race Team Alliance (RTA), the body representing all Nascar teams, have been in discussions over the next charter agreement for some time. Currently, teams control the charters until the end of 2024. If these were allowed to expire, Nascar could seize charters and teams could explore starting or joining rival racing series.
The deadline for negotiations was previously extended and it was expected that Nascar executives would target a swift conclusion to these discussions to avoid any contract talks spilling over into the start of the season.
Coming next:
Teams currently require around 60 per cent to 80 per cent of their revenue to be generated through sponsorship, with it costing around US$20 million to run a car for a full Nascar Cup Series season. The teams are angling for more revenue from Nascar itself as a result of these negotiations in order to rely less on sponsorship.
Nascar reportedly agrees with this increase in funding but wants to explore the introduction of a budget cap to curb teams’ spending. A deal could be months away from being agreed but a conclusion is likely to be reached, according to SBJ.
If no agreement is reached, Nascar might go as far as to seize the teams’ charters, which are currently trading at around US$40 million.
Go deeper
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