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The latest on NASCAR and teams’ charter negotiations; how drivers feel
By Matt Weaver,
1 day ago
It’s now September and there are just five months remaining for NASCAR and the teams that currently compete in the Cup Series to reach an agreement that would prevent the catastrophic unraveling of the sport as everyone knows it.
Unlike on Sundays, there is no overtime to reach a new revenue sharing and charter agreement because this is actually already that point for a process that originally had a deadline of January. If a deal has not been reached before the start of next season, teams will be free to race whatever or wherever they want.
In kind, NASCAR would strip the teams of the charters and would then open races up to anyone, and would no doubt create a much different structure and economy for those choosing to participate.
NASCAR sent a new counterproposal to the teams last week and the public response from those who chose to make one doesn’t indicate progress whatsoever. Curtis Polk, who co-owns 23XI Racing with Michael Jordan and Denny Hamlin wore a shirt that referenced an anti-disparagement clause baked into the proposal.
Hamlin addressed it on Monday’s episode of his Actions Detrimental podcast.
“I would choose not to speak about it but it kind of speaks for itself, and I can’t believe he actually wore that,” Hamlin said. “They do not want you speaking negatively (and) that’s a new add. We’ll see how that goes. NASCAR’s got their stance and the teams have there’s. We’ll just see where this goes over the next few weeks.”
Hamlin says the offers from NASCAR ‘have never been great’ and that 23XI ‘would take a decent deal, and not even a fair deal,’ but those haven’t come in from his standpoint and likely those from his counterparts in the Race Team Alliance.
The current charter agreement runs through the end of this television agreement, which has run since the 2015 season and determines how much money teams get from broadcasts rights, other revenue streams and certain governance provisions.
The two sides have been working for about two years to reach an agreement but have been held up on all matters from old revenue splits, new revenue splits, charter permanence, charters as a franchise model and governance over rules changes and state of the sport decision-making.
“I think for a very, very long time, NASCAR has said this is our family business and if you don’t like it, you don’t have to participate” Hamlin said. “I think the world has changed since that mentality was established a long, long time ago by Bill France Sr. and while I certainly respect everything they have built, and that they have done a good job, at a certain point, you have to update your thinking or else you will hold the sport back.
“Healthy and viable teams is what grows sports and you’ve seen a lot of money come into teams and it propels sports forward because they all pull the rope in the same direction — the interest of the teams is the same as the league.
“They join up and collect their assets and sell it together, and right now, NASCAR owns this and teams own that, and we compete for the same sponsors. All we do is compete against each other instead of locking arms and grow the sport together.
“In my opinion, until we do that, we are just going to continue spinning our tires.”
“It never should have gotten to this point but the parties involved have dragged their feet,” Hamlin added. “I believe this is part of NASCAR’s strategy, to drag it to the last hour and put (teams) in a panic situation. I don’t think we’re panicked. I just think we have ti keep going until both sides reach a point where they feel it’s in a good spot.”
Hamlin says ‘there will be no charters until a new charter agreement is done’ if a deal hasn’t been reached by December 31.
“There’s rights and things we have that we deem very important that NASCAR would no longer be able to use after that date,” Hamlin said.
For example, NASCAR is shooting footage for the second season of the Full Speed Netflix documentary but if an agreement hasn’t been reached, the teams would not grant NASCAR the rights to use the images and likeness of their branding but the reverse holds true too that teams would not be allowed to use the NASCAR branding for any promotional material.
“23XI is in the racing business and we plan on racing cars and wouldn’t have invested what we would have into the sport if we didn’t so it’s just a matter of whether we have charters or not,” Hamlin added.
Only Hamlin and Brad Keselowski are driver-owners that compete in cars they have an ownership stake in so other drivers are watching purely as invested spectators.
Veteran driver Ricky Stenhouse Jr. of JTG Daugherty Racing says he’s watching with a moderate level of concern.
“I mean I think, obviously I’m not near as involved as a Denny or a Brad,” Stenhouse said. “But as a driver, you’re definitely, I would say concerned a little bit about it. I thought it would have already been done by now but as far as the details, I don’t get into the specifics with our ownership group. Obviously I play a lot of golf with Denny. He and I are good friends.
“I think they’ll come to an agreement at some point. Hopefully it’s in a good spot for everybody. I know that, from our team, our ownership side is super committed to this sport and they love this sport. So for me, that’s all that really matters going forward. Yeah, hopefully they get something that works for everybody.”
William Byron of Hendrick Motorsports says he only pats a little bit of a attention and is on a need to know basis about it.
“Yeah, I don’t really pay attention to the business side that much,” Byron said. “I really just focus hard on what I do, what I can control, but I do read the articles and look at everything and kind of get an idea of what is going on and how it’s evolving.
“I just want to be a good racecar driver and win a bunch of races, and hopefully, the sport is around a long time, and I can do that. I think it would concern me if something was going on where we weren’t going to race or something like that, but I don’t really pay much attention.”
Ross Chastain of Trackhouse Racing is a partner of the Motorsports Management International agency but isn’t getting into the charter conversation at all, choosing instead to stay in his lane as a driver for the most part.
“I’m not in the charter business,” Chastain said with a matter of factness.
And after a pause.
“That’s probably where I should leave it.”
And then a chuckle.
“I look back and obviously wish I would have (invested in one) and that’s any investment,” he said. “You look in hindsight and it would have been good when charters first came out to invest in them, but I wasn’t smart enough then and maybe not smart enough now. It’s worked out good for some and not so good for others.
“I think it’s been a win for everybody, though. I don’t study it. I just get information after it’s happened of what it all was.”
And then there’s two-time Cup Series champion Joey Logano of Team Penske who simply follows it with a casual interest.
“I try to follow it as much as I can, and learn as much I can know, right,” Logano said. “There are a lot of secrets and things I don’t know too. I feel like I know enough and care enough about the sport to have an idea of what’s going on.
“I’m sure it’s going to work out. It’s just business at this point. Everyone is trying to get to the point they call fair. Obviously, when you have to different groups working towards two different things, there’s a lot to iron out. But we have too much of a good thing going on in our sport to let this thing end it. Something has to happen at some point and we’ll move on from there.”
What else do I need to know about the charter system negotiations?
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