NASCAR President Steve Phelps said the sport is “all-in” on its charter system, as discussions with the teams for its renewal continue.
The NASCAR Cup Series instituted the system in 2016 by issuing 36 charters that guaranteed starting spots in each of the series races.
The idea was to give teams a consistent package to sell to sponsors.
Nevertheless, Phelps said many teams are struggling to stay in the black.
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“W think the charters have been valuable to the sport overall.”” Phelps said during an industry meeting on Monday, Speed Sport reported.
Phelps said the teams are looking for three things.
“They want to be competitive on the race track, which right now that’s a check. They want to increase the enterprise value of charters and that has been a check, and they want to have a path to profitability. That’s not a check right now.”
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Charters can be sold among teams for market value, which has skyrocketed since their introduction in 2016.
The first charter sales came that year, when Michael Waltrip Racing reportedly sold the two it held to Stewart-Haas Racing and Joe Gibbs Racing for $1 million each.
This year, Spire Motorsports purchased one from Live Fast Motorsports for $40 million, according to The Athletic.
Phelps said a new media rights package for the Cup Series that it is negotiations with several parties for 2025 will also be key to adding value to the sport, while the individual races also need to be addressed.
He said there were only 12 or 13 sellouts during the 2023 season, including tracks like Pocono and Michigan that recently went from two races a year to one, so that’s something they are considering for future schedules.
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He also revealed that NASCAR “lost a ton of money” on the Chicago Street Race, which was voted race of the year, but that the upside in TV ratings and broad interest among casual fans made it worth the investment.