“Sign or we will revoke your charters.” NASCAR insider Jenna Fryer had shared that teams were threatened to sign the charter agreements. The charter system, which was started in 2016, was developed to bring more stability, but it soon became a menace because of its lack of permanency and the financial burden it puts on teams. At the same time, let us not forget that the benefits of signing a charter agreement with NASCAR are many.

• NASCAR guarantees teams with a charter a spot in every race. This opens the gateway to further sponsorships and financial stability.
• Teams with a charter agreement receive a larger share of the revenue from diverse sources. This includes TV deals, sponsorships, and a share of other sources of revenue that NASCAR may have. Additionally, the agreement ensures long-term profitability and financial stability for the teams.

Amid some teams already signing the new deal, Brad Keselowski, RFK Racing co-owner, has pointed out something much more significant. He disagrees with the ‘forced’ charter narrative that everyone has been talking about.
Important to note: The charter agreement between RFK Racing and NASCAR is a done deal now.

Brad Keselowski on the larger economic issue

While talking about alleged forced charter agreements on NASCAR’s part in an interview, the 40-year-old made some bold statements. “I don’t know where’s that coming from. But forced is a really strong term, but you know we are getting to a spot where you know it’s important to get these things settled. We’re glad that the economics are improved to go with the media landscape that has moved and we’re certainly glad to see the sport perpetuate.”

Now fans and analysts can only make a rough estimate about the money being involved here, but a co-owner would know what’s exactly at stake in an agreement like this. And Brad Keselowski knows the importance of such a deal. However, Brad Keselowski recognizes that people with a larger vested interest are involved in NASCAR. Racing in the modern era without the support and cooperation of these stakeholders would not be possible.

The No. 6 further added, “Right now the sport lives or dies out of the media rights deal and there’s no getting around that. And so when the media rights deal gets done or got done, that was a big, big deal for the sport. And now you’re seeing the dominos fall behind that and so don’t forget where the first domino is.”

Out of the 36 charters available, RFK Racing was the first team to sign the agreement and acquire one for the team. This is the reason Keselowski referred to himself as the first in the domino. Also, this implies that almost everyone might fall in line and sign the agreement with NASCAR.

However, for now, 23XI Racing is one of the two teams against the charter deal. Michael Jordan and Denny Hamlin’s co-owned racing team have clarified that they are looking for a more suitable deal. Similarly, Front Row Motorsports, which is quite small, has taken a similar stance and has not signed the extension that runs through 2031. Why?

It is because of NASCAR’s non-disparagement clause. Now only time will tell whether they will reach an agreement. But for now, NASCAR has shown no signs of stopping!

NASCAR: The deal that broke all records

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NASCAR recently concluded a media rights deal with six media partners. The media rights deal, which amounts to a 40% increase in revenue, is estimated to be worth $7.7 billion for NASCAR, which also means there is a 40% increase on NASCAR’s current US$820M/year media rights deal. The new deal involves some of the traditional media partners of NASCAR, like FOX Sports and NBC Sports.

“Our goal was to secure long-term stability with an optimized mix of distribution platforms and innovative partners that would allow us to grow the sport while delivering our product to fans wherever they are – and we’ve achieved that today,” NASCAR President, Steve Phelps, said as they closed the deal in 2023.

However, an attempt is being made to slowly but surely shift the way people have been watching the races so far. Besides the mainstream television partners, the media rights deal includes OTT streaming platforms like Amazon Prime Video and TNT Sports.

As per the proposed deal, FOX Sports and NBC Sports will continue to cover 14 races per season. While Amazon Prime Video and TNT Sports will stream 10 mid-season races each. This deal places NASCAR’s media rights valuation right in the mix with other popular sports like the NFL, NBA, MLB, and the Big Ten Conference. The most prominent deal amongst these sports is that of the NBA.