A lot has been said about NASCAR’s charter proposal. Thirteen out of fifteen charter teams put pen to paper ahead of the 2024 playoff race at Atlanta Motor Speedway, with the sanctioning body claiming that they had provided improved financial terms to end a longstanding impasse. The organization had signed a contract with NBC, Fox, Amazon, and Warner Bros Discovery to split domestic coverage from 2025 and beyond, and teams wanted a slice of the multi-billion dollar deal to secure their interests in the sport.

However, a prominent NASCAR journalist has revealed the fixed amount of pool money teams will receive per charter in 2025. The revelation has left a bitter taste in many fans’ mouths, and many have taken to social media to express dissatisfaction.

Does the charter agreement provide real financial benefits?

It couldn’t have been more controversial. NASCAR teams were handed a take-it-or-leave-it ultimatum or risk losing their charters if they didn’t sign the sanctioning body’s latest proposal. Given what was at stake, the majority obliged with the organization’s terms and conditions, despite rumors circulating that teams were ‘coerced’. According to the France family and the sports hierarchy, their key stakeholders were given improved financial terms to safeguard their long-term future, with guaranteed payments being made every season before any purse payouts were handed because of their finishing position.

However, FOX Sports journalist Bob Pockrass has recently revealed the fixed amount of pool money each charter will receive in the 2025 season. The reputed journalist wrote on X, “In the judge’s ruling today, he wrote that the fixed amount of pool money (money chartered teams get before any purse payouts based on finishing position) will be approximately $5,000,000 annually per charter in 2025.” The revelation seems to have not gone down well with NASCAR fans, many of whom think the annual payout from the sanctioning body is well below the expectation. However, this all stems from the two teams who didn’t sign the agreement last year.

The ones who didn’t oblige in signing the charter deal in 2024 were 23XI Racing and Front Row Motorsports. The teams declined the charter agreement and filed an antitrust lawsuit against NASCAR in return. This led to the filing of a preliminary injunction which would allow them to race as chartered teams while still pursuing a lawsuit against the sanctioning body. While Judge Frank Whitney initially denied the injunction, he was replaced by Judge Kenneth Bell, who eventually approved it. This was a watershed moment, as it felt like NASCAR was finally dethroned. However, as the lawsuit proceedings carried on, the charter agreement needed to be tweaked to finalize the payouts as per their new broadcasting deal.

NASCAR signed the most lucrative media rights deal by annual value in its history in 2023. The organization will split its domestic coverage from 2025 to 2031, generating an estimated $7.7 billion over seven years. This means that with an annual income of more than a billion dollars, the new media rights deal is a significant upgrade from the $820 million per season it previously received from Fox and NBC until 2024.

Taking these factors into account, it’s not surprising that NASCAR fans believe that the $5 million payout doesn’t reflect the media rights deal the sanctioning body has signed with four different broadcasters. Cup Series teams incur high operational costs, especially with the number of races they compete in throughout a season. Is the per charter payout enough to ensure they can financially sustain themselves over a year? Many fans don’t seem to think so.

NASCAR fans dissatisfied with payout revelation

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As expected, it didn’t take long for NASCAR fans to voice out their opinions on social media. Unlike Formula 1, the stock car racing series has struggled to gain traction internationally, with many believing that the sport will only remain relevant in the United States. Shocked at the fixed amount of prize money being offered to chartered teams, a fan wrote on X (formerly known as Twitter), “$5mm??? No wonder this is a minor league sport.” Echoing that sentiment, another motorsports enthusiast couldn’t help but say, “5million thats so little”, especially considering that the figure is an annual payout for charter teams.

Remembering the multi-billion dollar deal NASCAR signed, a fan did some quick math to realize that teams were getting a very small slice of the broadcasting agreement pie. The fan wrote, “5 million is VERY little. New TV deal is 1 billion a year. Multiple the 5 million by 36 charters and it’s 180 million. Teams aren’t even getting 20%.” Shocked at the figure revealed by Bob Pockrass, another NASCAR fan asked the FOX Sports journalist, “This is before the payouts for both individual races and points standings are awarded correct?” Yes, indeed it is.

A motorsports enthusiast reflected on the operational costs teams incur throughout a season to analyze if the fixed payout is financially sustainable for Cup Series teams. Even though the $5 million is just the base amount before taking the finishing position per race into account, the fan wrote, “$5Mil per season when each car costs roughly $250k that pays for 20 cars through out a season where there are 39 races if you count the clash, duels and all star race. 40 races if you have to race in the all star open.” What are your thoughts on this ruling? Is $5 million enough?