NASCAR is reportedly making $1.1 billion from the new media rights deal, a 34% increase over its previous deal of $820 million. So, what does this mean for the teams? Denny Hamlin, the most outspoken critic of the charter and compensation negotiations, painted a bleak picture for the stock car organization.
The 23XI racing co-owner recently stated that four fundamental pillars had not been satisfied. With that, Hamlin refuted O’Donnell’s claim that the agreement is ‘near’ to being completed. This left Dale Earnhardt Jr with only one question for Hamlin on the Dale Jr.
As things currently stand, NASCAR and its teams are at loggerheads trying to negotiate a fair payout structure. While the organization continues to back the $9 million it pays to cover teams’ operating costs, the latter has pointed out how that hardly covers anything, with a single car requiring $10 million a year. Subsequently, this leaves teams to fend for themselves and rely on sponsorships majorly. However, this is what owners have been trying to change.
On the back of a lucrative media rights deal that will push NASCAR to newer heights, teams have been wanting a bigger piece of the cake, too. However, the organization has revealed how it’s not as easy as it looks. Pointing out the cost to maintain tracks and shell out prize money, NASCAR has called the current structure fair.
Owing to the sheer amount that a team stands to lose per weekend, Denny Hamlin believes the lack of a charter could demotivate many teams from showing up at all the races. He added, “The Clash, we won’t show up at that, the All-Star race, we wouldn’t show up at that. Maybe some races pay less, we just wouldn’t show up to those, it’s just not financially good.”
Denny Hamlin made his stance known rather bluntly. With how his team is performing as of late, the lack of any charter next year could mean the team carries an even higher risk than before. Although no other stakeholder or team owner was as vocal as Hamlin, there’s not a lot of patience left in his tank. He concluded, “I’m sure there will be owners not like that. I’m saying this publicly, but I’ve reached the point of frustration and it’s boiling over.“
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