We have seen it happen before! Whether it’s Newcastle United in the Premier League, or LIV Golf to rival the PGA Tour. Foreign funds have made their presence known in the sporting world, and as motorsports continues to grow, NASCAR could be their next destination.

However, while discussions continue to be underway for NASCAR’s version of Formula 1’s Concorde Agreement, the new agreement could directly influence whether sovereign wealth funds could make their way into stock car racing. But with playoffs on the horizon, the lack of clarity regarding new charter agreements is causing some tension.

Word on the racetrack is that the sanctioning body is proposing some changes that could shake things up a bit, including a potential ban on investments from sources such as Saudi Arabia’s Public Investment Fund.

Is restricting sovereign wealth funds the right move?

While NASCAR looks to expand its horizons, attract international talent, and race beyond American borders, the sanctioning body is also keen on vetting out foreign investment. As seen in other sports, investments by sovereign wealth funds could lead to unnecessary scrutiny and political influence on the series. Commonly known as ‘sports washing’, NASCAR is keen to dissociate itself with investments where countries make use of exciting sporting projects to mask their ongoing human rights issues.

In a conversation on the Dale Jr. Download, Jordan Bianchi, a reporter for The Athletic, said, “We hear this a lot, ‘sports washing’, where countries will, you know, Olympics, World Cup, Formula 1, and they will try to gloss over their oppressive regimes by having all these big sporty events that just kind of puts a good light on them. NASCAR doesn’t want to be cast in that. Doesn’t want to be used as a pawn in a way. You gotta look at the LIV Golf, that got a lot of investment from the Saudi groups, right?”

Bianchi further went on to decode the kind of repercussions of going overseas and allowing countries to do big events. He continued, “There’s a lot of backlash against them. How they portray themselves, who they are associating themselves with. If you’re NASCAR, is that something you want to do? Is that a PR road you want to go down? And the answer is probably not.”

The Saudi Public Investment Fund, worth an estimated $925 billion, currently owns stakes in various sports teams and leagues through its subsidiary, SRJ Sports Investments. As things stand, the sovereign wealth fund owns LIV Golf, the Saudi Pro League, as well as a majority 80% stake in Newcastle United, which was completed after a controversial takeover.

In July 2023, Qatar Investment Authority purchased a 5% stake in Monumental Sports & Entertainment, the parent company of many Washington-based sports teams. This includes the NHL’s Washington Capitals, NBA’s Washington Wizards, and WNBA’s Washington Mystics. If NASCAR does decide to ban investment from the sovereign wealth funds, it wouldn’t be the first to do so.

The U.S. National Women’s Soccer League has also gone through a similar route, opting out of investments and ownership stakes from such sources. While NASCAR has remained tight-lipped about its plans, the ever-changing charter negotiations mean that its provisions could change and the speculated ban could be lifted entirely. As things stand, nothing is set in stone, while discussions regarding foreign investments and charter agreements continue to take place behind closed doors.

NASCAR teams eye withdrawal from Netflix documentary

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Remember the time when reports were suggesting that a charter agreement would be reached before the Daytona 500 in February 2024?

Good times!

With the ambiguity surrounding the charter agreements, as teams continue wanting more money and stability, the sanctioning body wants to maintain the status quo, which has resulted in an impasse. This has led to teams eyeing a withdrawal from the second season of Netflix’s NASCAR documentary until a charter agreement has been finalized.

According to Sports Business Journal’s Adam Stern, “Some teams have considered not participating in a documentary if a deal isn’t done by the playoffs, others disputed that they would hold out, and it’s possible the sides could still find a resolution before the playoffs begin to allow for the docu-series to happen.” The first season of NASCAR: Full Speed featured the playoffs from the 2023 season as well as behind-the-scenes footage from the regular season finale.

With just four races to go before playoffs begin in Atlanta Motor Speedway, it remains to be seen if NASCAR teams will agree by the time the regular season ends. If an agreement isn’t reached, which seems to be the most likely scenario, Netflix will have no choice but to cover the lifestyle surrounding the Cup Series drivers during the offseason. However, it will be in the best interest of teams and NASCAR to find a resolution to the charter agreement once and for all, to finally bring an end to the longstanding saga.

However, what are your thoughts about sovereign funds being invested in NASCAR? Let us know in the comments!