Do you think there would be a possible outcome if there’s no agreement between NASCAR and teams over the new charter system? While teams have made their demands for a better revenue split clear, a response from NASCAR is still pending. Going by the delay, it feels like teams do have leverage they are banking on, and this could well be put to use if needed. Leading the charge for the team’s negotiations, Jeff Gordon, in a recent podcast show, shed light on moves made by the teams to get their demands met by NASCAR.

One of the biggest concerns for the teams is the rising cost of operating and running a NASCAR team. In response to this spending, there’s not much return in terms of profit. Looking at this structure from a sustainability standpoint, the teams are running dry on reserves and therefore are willing to take extreme measures, even if that includes a potential absence from the NASCAR race tracks next season.

RTA’s leverage over NASCAR in charter negotiations

A charter agreement essentially means a share of the revenue pool. However, with the changing dynamics of the sport and dwindling exposure, teams have now started to wear out. Their best bet to get themselves out of the pit is to strike a deal that is efficient for them in the long run. With NASCAR playing hardball, the teams have found themselves a leverage that they can put to work if needed.

Jeff Gordon, while speaking on Dale Jr Download, explained the leverage teams hold over NASCAR. He said, “I think that the investments the teams are making right now in the sport—not just to go fast but to try to build our businesses that is sustainable then something’s got to change. If something doesn’t change, I don’t think we’re gonna see the sport get back to once where it was. So what is the leverage? Right now we don’t have a charter agreement that guarantees that teams have to show up to the race tracks.”

What this means is that without the charter agreement, the teams are not obliged to show up at the race tracks. The agreement does mean a split in the revenue pool, but it also secures the team’s spot on the grid. So without inking a new deal, teams are within their rights to not race in NASCAR, if their demands are not met. Hypothetically, this is a nightmare scenario for both NASCAR and the teams going forward.

Read More: Jeff Gordon Discloses Rick Hendrick’s Selfless Financial Sacrifice to Save NASCAR Amid Unsolved Charter Negotiations 

It’s not just the teams trying to play their cards right. Even NASCAR has been steadfast in holding its ground, and the current TV deals do tilt the scales in their favor for the time being.

NASCAR itself is holding firm on the back of a $7.7 billion TV deal

Trending

Months After Suspension, Joe Gibbs’ Veteran ‘Chokes Up’ On Fulfilling 7-Year Long Redemption

Richard Childress’s Youngest Grandson Makes a Political Move Back to the Cup Series After a Disappointing Stint at CTS

NASCAR Rumor: Noah Gragson to Steal Kevin Harvick’s NASCAR Legacy From Tony Stewart’s Star, Claim Fans

Despite ‘Undrivable’ Rant, Shane van Gisbergen Lets Slip 8-Word Secret Behind Kansas Comeback

Denny Hamlin Puts NASCAR System Under Scrutiny for Ross Chastain’s Playoff Disruption

It’s not just the team playing their cards well; NASCAR themselves had an ace up their sleeves to stall a potential agreement for charter. According to Gordon, a charter agreement was close to being signed two years ago. However, knowing about the potential for a conflict between them and the teams, NASCAR waited until they were in a good position. Now with the TV money in the bag, the onus is back on the teams to find the sweet spot where they can close the deal.

Jeff Gordon explained, “We tried getting this thing done over the last two years before the TV deal was put in place. I think we had enough structure, that showed benefits for both sides. For NASCAR, the tracks and the teams. If we get closer to what we are asking for, then we have something that is not only where the teams are going to invest in sport, it also makes us true partners along with the TV partners.”

With both NASCAR and the teams standing their ground for the time being, it will be interesting to watch how the negotiations unfold going into the 2024 Cup Series season.

Watch This Story – Insider Suggests NASCAR Could Finally Make A Significant Bold Step After Long Consideration