The calendar has flipped to June, and NASCAR and race teams have yet to agree on a new charter deal for 2025 and beyond.
Denny Hamlin, speaking to the media before of Sunday’s Enjoy Illinois 300 at World Wide Technology Raceway, conceded “there’s still a ton of work to do” with the current agreement set to expire after the 2024 Cup Series season. NASCAR teams received the charter proposal from NASCAR on Tuesday.
Denny Hamlin and Brad Keselowski, as driver/owners with media obligations, stated at their media sessions that there is still work to be done.
“Yeah, I think there’s still a ton of work to do,” Hamlin said, according to FOX Sports’ Bob Pockrass. “Not a small amount of work, quite a bit. That’s gonna be the priority over the next few months maybe to get this thing a little closer.”
Brad Keselowski was also asked for his thoughts on where negotiations stand and though he said he doesn’t have a “strong opinion yet,” he sees progress being made.
“I haven’t formed a strong opinion yet,” Keselowski said. “Would like a little more time before going deep but it seems like things continue to progress, but I’m not one to go out on a limb and say that everything’s done. It’s certainly not. But there’s good progress and I respect that.”
NASCAR, race teams still negotiating new charter agreement
At the root of the matter, race teams’ fight to secure permanent charters. Under the current model, charters are not permanent franchises like the setup in other professional sporting leagues. Team can lose their charters due to poor performance on the racetrack or failing to field their cars week in and week out. As a result, most race teams lose money on a yearly basis.
Among other issues at hand, the amount of revenue sharing taking place between the racetracks, race teams and NASCAR itself. Race teams currently get 25% of broadcast revenue, tracks 65% and NASCAR 10%. Race teams are hoping to secure at least half of the revenue TV brings in. NASCAR notably announced $7.7 billion in media rights deals with FOX Sports, NBC, Warner Bros. Discovery and Amazon for 2025-2031.
NASCAR has offered race teams more of a slice of the revenue from the new broadcast deal but is only willing to renew the charters for seven years. Race teams argue that by not having permanent charters, it makes it more difficult to attract outside investors and invest in their operations.
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