At the risk of sounding like Captain Obvious, it is horribly expensive to maintain a NASCAR Cup Series team. It is worth mentioning that if 23XI Racing wants to expand to three cars, they will have to pay a lot more. Earlier this year, the team announced that they were recruiting Tyler Reddick for the 2024 Cup season. Now their options are to either let go of one driver or try to field three.
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Last year when they bought a second charter for Kurt Busch to drive, it cost around $13.5 million. This time around, the charter price has been hiked to around $20M, as per reports.
USA Today via Reuters
Aug 7, 2022; Brooklyn, Michigan, USA; NASCAR Cup Series driver Bubba Wallace (23) during the race at Michigan International Speedway. Mandatory Credit: Tim Fuller-USA TODAY Sports
Admittedly, there is still a lot of skepticism from critics about the true value of the charters. As it turned out, the $13.5 million sale was a record fee, and now there is a 48% increase in the price.
What prompted this sudden price hike in NASCAR?
Several factors apparently played a role in the rise in asking prices. Chief among them is the teams’ hope that there will be a tantalizing TV deal that will see them earn a bigger share. Reports suggest that the sport earns an astounding $820 million from media partners, and the teams are privy to 25% of the cut.
The charter market is simple supply and demand. If nobody wanted one they wouldn’t be $20M. Just ask Rick Ware how he afforded 4 of them a few years ago.
People need to realize NASCAR doesn’t set the price.
— Kenny (@KLRacing47) August 10, 2022
so much for new teams getting in lol
— DennyDeliversYT (@DennyDelivers) August 10, 2022
RWR selling his 15/51? 78? Or 47? I think those are the only two semi considering teams and I think they are just giving insane numbers because they have no desire to sell actually. They like being in the sport and outsiders will need to buy them out of their passion
— VCrow (@VinnytheCrow) August 10, 2022
I've said it and I'll say it again. Need to change charter system to a 40 car locked field every week. For teams to retain that charter year in and out certain qualifications must be met.
— Brandon Bain (@Atlanta_man247) August 10, 2022
The worse things to happen to @Nascar
1) Charters
2) Chase/Playoffs
3) Stage Racing— Larry Lee (@lblee58) August 10, 2022
Now, there are ongoing talks with NASCAR to increase the cut when the next media deal kicks off in 2025. As a result, some teams are holding charters in the hope that their value will increase.
Some predict that the likes of Rick Ware Racing, Spire Motorsports, and Live Fast Motorsports may sell their charters. This will work perfectly well for teams like JR Motorsports, 23XI Racing, and others.
Worst ownership in professional sports. Worst front office in professional sports.
Sell the sport to Marcus Lemonis.
— Michael Samuel (@Michael21045634) August 10, 2022
Made the cars cheaper just to make the buy in twice as expensive. God I love America
— Lem (@_LemW_) August 10, 2022
Like having a 2 dollar shipping charge on a 10 dollar item just to raise the price to 12 dollars but offer free shipping.
— Rawn Ennis (@Prolespeed) August 10, 2022
If Dale Jr didn’t want to pay 10 mil, ain’t no way he’s buying in at 20
— Burt Macklin (@TeamBubba23) August 10, 2022
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I bet you Dale Jr. wishes now that he would’ve started a Cup team right when they started with the charters….
— Full Season Points (@FullSeasonPts) August 10, 2022
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Of course, the biggest concern is that the prices are too high, and the guaranteed revenues are the same. Since 2016, charter teams have had to pay around $5M annually per car. However, everything depends on how the team performs on the track. Now, everything is banking on the new deal in 2025 and how it will affect teams and charters.
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