NASCAR’s charter signed, sealed, but not quite delivered

It’s official: most NASCAR Cup Series teams have agreed to the new charter proposal, concluding two years of tough negotiations over a revised revenue model. Thirteen organisations have signed the deal, which runs through to 2031.

The NASCAR charter system guarantees entry for 36 cars, with a maximum of four charters per team. This helps ensure competitive balance while protecting each team’s share of profits, making charters valuable assets that can attract long-term sponsorship.

Despite these benefits, not everyone is on board. Several teams, including 23XI Racing co-owner Michael Jordan and Front Row Motorsports, have refused to sign, citing pressure to accept the deal without further negotiation. Teams had pushed for four key changes: a larger share of revenue, input on governance, profit-sharing from NASCAR's commercial ventures, and permanent charters to guarantee stability. They feel these requests were not fully addressed, leaving uncertainty as the final deal details are expected later this year.

In the meantime, NASCAR is pushing ahead with its global expansion. It’s been confirmed that Mexico City will host a points-paying Cup Series race in June 2025 at the Autódromo Hermanos Rodríguez circuit to further international reach – the first Cup race outside the US in 25 years as part of a multi-year deal.

Ben Kennedy, NASCAR's Executive Vice President of Venue and Racing Innovations, called the Mexico race “a historic moment for our sport” and a key step in NASCAR’s global growth strategy. However, this expansion also highlights why teams are demanding more financial stability in the new charter system, as rising costs threaten profitability without guarantees of increased rewards.