Ever since Kevin Harvick and Aric Almirola left Stewart-Haas Racing’s fold, winds of change came. After months of endless speculation around the team’s charter, drivers, sponsors and its future in NASCAR, Tony Stewart finally announced what everyone had been dreading for long. Stewart and Haas announced they would shutter their 15-year-old team at the end of 2024.

This announcement had a profound impact on the racing community. While further cementing the NASCAR charter system’s flaws, it also threw up opportunities. However, two stellar teams are unable to bank on them due to financial restrictions.

Other teams echo Tony Stewart’s misery

When SHR’s charter sale rumors were ongoing, a few teams lined up as potential buyers. They include 23XI Racing, which has been fiddling with the idea of making its No. 50 ride full-time. Then Trackhouse Racing has more drivers than full-time cars, like Shane Van Gisbergen. Also, Front Row Motorsports’ recent ejection of Michael McDowell also puts them in the front row for a charter purchase.

Two other teams are also on the list. RFK Racing, which kicked off after Brad Keselowski entered as a co-owner, has recorded some stellar finishes. Chris Buescher won three races last year and owns three podium finishes in 2024. Keselowski himself has five top-fives and one Darlington victory this season. And so, his team could potentially expand.

But when Tony Stewart’s announcement came out, Keselowski’s comments highlighted the high cost of NASCAR charters. After a fan rooting for a third RFK car, Keselowski enlightened them about his team’s dire state. He tweeted: “I’m 30m short at the moment. Friends say we should start a GoFundMe 🤷🏼”

The same scenario afflicts JR Motorsports as well. The three-time Xfinity Championship-winning team has long flirted with fielding a Cup Series team. Justin Allgaier and Carson Cvapil, both stellar Xfinity drivers, could transition to Cup. But Kelley Earnhardt Miller, the team’s CEO and Dale Earnhardt Jr’s sister brushed aside whispers of buying SHR’s charter, at least for now. She replied to Brad Keselowski’s post, highlighting JR Motorsports’ a similar scenario, “Haha us too!”

Earlier, Dale Earnhardt Jr. himself had expressed doubts about buying one of SHR’s charters. Speaking on his podcast nearly two months ago, he had said that he was interested in buying a charter but lamented the high cost attached to the them.

He pointed out that the current charter prices have sky rocketed to $40 million, making it difficult for his team to consider a purchase and move into Cup Series. Last year, Spire Motorsports bought Live Fast Motorsports’ charter for a reported $40 million.

Meanwhile, Bob Pockrass of FOX Sports NASCAR has reported that three of SHR’s charters will be bought by Front Row, 23XI and Trackhouse Racing.

SHR’s decision was inevitable given the circumstances the team found itself in. Their deal with Ford was coming to an end this season with no renewal talks in sight. Last year after the retirement of Kevin Harvick and Aric Almirola, sponsors such as Anheuser-Busch and Hunt Brothers Pizza both left with Smithfield Foods also departing leaving SHR in trouble. After a winless 2023, the writing was on the wall.

It means all of its drivers and crew members will become free agents next season. As the SHR chapter closes, the likes of Josh Berry, Chase Briscoe, Noah Gragson will have a chance to start afresh.

Besides the age-old charter controversy, many other factors worsen the teams’ economic health. For instance, the Next-Gen car was rolled out to reduce costs but did the opposite. The single-source car parts are less durable, lasting four races or so. Then there’s the cost of hauling race cars and flying teams across the country every week. But especially concerning is the lack of media profits, that 23XI Racing’s co-owner poignantly brought up.

Michael Jordan highlighted NASCAR flawed ownership model

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When Denny Hamlin joined NBA star Michael Jordan to form 23XI Racing, they were prepared for challenges. In 2021, the NASCAR landscape was bleak, having suffered low TV ratings and viewership. But the 23XI duo predicted that things would change and the value of the sports’ broadcast rights would increase. And they were right, as last year NASCAR signed a seven-year, $7.7 billion deal with Fox, NBC, Amazon, and Warner Bros. Discovery.

But despite the growing fortune, NASCAR’s higher-ups are reluctant to share the sweets with race teams. Michael Jordan highlighted this greedy nature earlier this year: “In all partnerships, if you grow the pie, that means your business is going to continue to grow. And to grow the pie, you’ve got to make sure everybody’s healthy within the partnership. If our ownership in NASCAR is losing money and NASCAR’s the only one making money, that’s not a good partnership.”

Teams are projected to lose up to $200 million in five years under the current business model. With the current charter deal ending this year, there is an opportunity for NASCAR to increase the revenue split for the teams.

But unless NASCAR pays heed to Jordan and other owners, more teams may follow SHR’s footsteps in the future.