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NASCAR Cup: charter system lives on

HOMESTEAD, FLORIDA – NOVEMBER 17: Denny Hamlin, driver of the #11 FedEx Express Toyota, leads a pack of cars during the Monster Energy NASCAR Cup Series Ford EcoBoost 400 at Homestead Speedway on November 17, 2019 in Homestead, Florida. (Photo by Brian Lawdermilk/Getty Images)

By AMANDA VINCENT

The charter system in the NASCAR Cup Series will last at least five more seasons, as an extension was agreed upon between the stock-car racing sanctioning body a team owners, specifically members of the Race Team Alliance (RTA).

“The charter agreement is delivering stability and long-term value to existing team owners while providing a clear path for ownership in the NASCAR Cup Series,” NASCAR President Steve Phelps said. “We are pleased to have reached an agreement with the team owners that extends the length of the Charter system until 2024. A healthy ownership structure ensures strong, competitive racing for our fans, which is a goal the industry collectively shares.”

The charter system allows for 36 charters, which give the holding teams guaranteed starting spots Cup Series points-paying races and larger shares of purse money, compared to teams without charters. That system leaves open, or non-chartered, teams to battle for four possible remaining race starting positions.

The extension, announced Friday and set to take effect ahead of the 2021 season, includes a 1.5 percent increase in revenue from NASCAR, tracks, media and digital rights to give chartered teams a 6.5 percent piece of the pie. Also, teams with charters will receive an additional $2.8 million that previously went to open teams as part of the renewed agreement, decreasing the money available to open teams.

“After extensive consultation amongst the teams, NASCAR and other stakeholders, there is now a collaborative roadmap for development of the Next Gen Car, schedules and new areas of growth including esports and gaming,” RTA chairman Rob Kauffman said, as quoted by Autoweek. “The extension will continue the positive trends currently underway and advance the RTA’s goal to promote and grow the sport of stock car racing.”

Most of the teams holding charters are among RTA membership.

Other changes expected ahead of the 2021 season include a new generation car for the Cup Series and a schedule upheaval that could include new race tracks and/or the loss of races for some tracks.

The charter system was established ahead of the 2016 race season and included an option that could be picked up ahead of the 2021 season. According to a report from The Athletic, the 36 chartered teams received a combined estimated $260 million last year.

The idea of the charter system was to give teams value beyond the value of equipment that is often sold at a reduced rate when teams go out of business. The charter system is the NASCAR version of a franchise system utilized by most major professional sports.

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Posted by on February 14, 2020. Filed under Breaking News,Cup Series,Featured,NASCAR. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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