Cup Series teams express frustration with NASCAR, allow charter negotiation period to expire

After extending charter negotiations through January, Cup Series teams are showing their displeasure with NASCAR now. There has not been another negotiation extension made, and that means talks are likely going to stall for a bit.

There is serious contention between NASCAR and the chartered teams around the revenue-sharing agreement. NASCAR just signed a TV deal worth $7.7B over the next seven years, and teams want more of that money than they previously got.

Teams have to operate mostly off of sponsorship dollars, with the revenue agreement adding funding for the 36 chartered cars. While team owners are trying to get more money, the higher-ups want to implement things like a cap on spending, much like a salary cap in other sports.

The news that the Cup Series teams refused to extend the negotiation period was reported by Adam Stern of Sports Business Journal. Stern had previously said that Cup teams could pull a stunt at a race to protest the lack of a new deal.

Perhaps refusing to extend talks for now, is the act of protest. NASCAR can get a charter agreement done without a majority of teams signing onto it. However, for now, the team owners are united in their negotiations with the sport.

There are plenty of issues here. Teams want permanent charters and NASCAR wants to cut back on spending even more. Teams also want more money from the TV deal, getting close to an even split between themselves and NASCAR.

Right now, the NASCAR charter negotiations are going to pause. When the two sides come together again, they will try to iron this thing out.

NASCAR charter negotiation goes on pause ahead of Clash

Of course, with cars hitting the track this weekend, the charter agreement will be the talk of the sport. And when Adam Stern mentioned teams pulling a protest or stunt at a race – why not the exhibition race in Los Angeles?

The Busch Light Clash pulled in 3.65 million viewers in 2023. That was one of the most watched races of the season. It is also a race that has no championship implications, it is an exhibition to start the season so why not do something there?

Look, I want to see racing this weekend. I also want to see NASCAR give teams a fair deal. There are pros and cons to the charter system, but after almost 10 years of it, switching things up now and pulling them from these teams or cheapening the value would be, in NASCAR’s own words, “actions detrimental to stock car racing.”

The charters have exponentially gone up in value. From just a few million dollars to now $40M+ on the market. Not to mention, rolling back the charters or doing away with them altogether could lead to a split between teams and NASCAR. Something no one wants to see.

The teams are mad. I get it. They should be. And I get NASCAR’s stance, they are the brand, the recognition. But these teams give them that respect and credibility. While this deal doesn’t have to get done until February of 2025, many want it done now. Most expected it to get done by now. So, what is next? Well, first of all, talks have to resume at some point.

NASCAR has to take the charter negotiations seriously, especially now. Cup Series teams have shown they are holding together on this. That unity is putting pressure on the governing body.