Nascar has agreed to extend the deadline for charter negotiations with teams, according to Sports Business Journal (SBJ).
Confirmed:
- SBJ reports current offer from Nascar to teams stands at 42 per cent, up from the current 35 per cent
- With a media rights deal worth US$1.1 billion, that works out at US$462 million
- A second methodology has the deal working out at 49 per cent, up from 39 per cent
Context:
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 Race Team Alliance (RTA), the body representing all Nascar teams, has been vocal about the “broken” economic model in the past, with teams reportedly targeting between US$16 million and US$18 million per year each from the new deal.
RTA previously enlisted the help of Los Angeles-headquartered Wasserman to assist in negotiations, but talks have not yet concluded due to Nascar taking longer than expected to finalise the next round of media rights, eventually landing a seven-year, US$7.7 billion contract.
Comment:
Lauri Eberhart, co-founder of the Apollo Sports & Entertainment Law Group, told SBJ: “[Negotiations will include teams having more of a say in the] material changes to the schedule or to the car. Balance in everything is key, and so what I do like about the current plan is it’s a mixture.”
Coming next:
The new deal wouldn’t start until 2025, but Nascar executives will want to avoid these negotiations becoming a distraction when the stock car racing series gets underway in February.