It is no secret that NASCAR took its own sweet time to close the media rights deal. While the governing body came out with flying colors last November, they need to do the same with the charter negotiations as well. Having said that, the current scenario doesn’t look like a pretty one for the sport.

With the current charter deal expiring at the end of 2024, time is running out of hand. However, what’s more concerning is that NASCAR has struggled to convince the teams involved to agree to a deal. Recently, it was reported that the deadline for negotiations had been extended.

NASCAR faces a daunting task in closing the charter negotiation deal

There is no doubt how the charter system helps the Cup Series teams, especially the smaller ones. Having a charter not only helps teams get a portion of the purse, but it also guarantees an annual payment from the league and starting spots. With the new deal, teams have been demanding more revenue from NASCAR, but the governing body isn’t willing to offer as much.

The new media rights deal sees NASCAR grab $7.7 billion over seven years. This means that the regulating body will earn $1.1 billion per year as compared to $820 million considering the existing deal. While it’s a massive upgrade, Cup Series teams are expecting to get more benefits from the charter system because of this new media rights deal.

As reported by the Sports Business Journal, teams get 25% of the traditional media revenue, with 65% going to the tracks and 10% going to NASCAR. When the prize money is included, the figure goes to 39% for the teams. However, with the new media rights deal, some teams expected the offer to be close to 45%, while on the other hand, some believed it should be split equally.

While that is one way of looking at things, there’s a different methodology available in the negotiations. The other method sees a 42% offer, leveling up from the current 35%. With plenty assumed, the true story behind the scenes remains a secret.

WATCH THIS STORY: NASCAR’s Media Rights Negotiations: A New Twist

However, NASCAR needs to close the deal without upsetting those involved. After all, with the 2024 season not so far away, the governing body will have to be prompt in its approach. Even if both parties agree, there remains a big dilemma.

More drama should be expected from the charter negotiations

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Should the negotiations between NASCAR and its teams fail, the regulating body will be able to seize charters. However, that allows the teams to venture into starting or joining rival racing series. Surely, NASCAR doesn’t want that to happen at any cost.

Having said that, should a deal come into place, there’s a tricky situation on hand for both parties involved. Teams and NASCAR will have to figure out how the money will be split, considering there are 36 chartered cars. At present, four factors—the race purse, a fixed owner’s plan, a historical owner’s plan, and a year-end points fund—dictate the amount a team gets in a single year.

So there are plenty of dynamics that come into play with the new charter deal. With the deadline to close the deal now extended, it certainly indicates that NASCAR and the teams involved are far from being on the same page. While they don’t seem to have reached an impasse, any further delay in negotiations couldn’t prevent that from happening. Hopefully, the fans won’t have to witness such a scenario.

READ MORE – NASCAR News: NASCAR’s $7.7 Billion Media Deals Consequences on the Charter Negotiations