Tony Stewart Severely Undercuts B.J. McLeod’s $40 Million Genius Amidst NASCAR’s Charter Dilemma

SHR’s situation has sent waves across NASCAR. After JR Motorsports’ Dale Earnhardt Jr and RFK Racing’s Brad Keselowski confirmed they were not in contention to buy Tony Stewart‘s charters, it left Front Row Motorsports, Trackhouse Racing, and 23XI Racing in the game. So far, there’s been no word from Justin Marks or Denny Hamlin, but Bob Jenkins did confirm last week that Front Row Motorsports plans to buy one of the four charters up for grabs from Stewart-Haas Racing.

The charter purchase, as a result, would enable the team to field three full-time entries for the first time since 2015, and that too at a much lower price than anticipated. Not to forget, charter prices are expected to rise by 200% in the coming years. How did Stewart lose money then?

Has Tony Stewart’s rush to sell cost him $15–20 million?

Just last year, B.J. McLeod-owned Spire Motorsports shelled out a shocking $40 million for a charter from the now-shuttered Live Fast Motorsports. Charter prices have been skyrocketing more than tenfold recently, thanks to NASCAR’s new car model, pulling in new team owners.

This year, however, as per the Sports Business Journal report, the prices have dipped, at least for now. With about half a dozen charters up for grabs—four from Stewart-Haas Racing and a few more from other teams eyeing sales—the market is swamped. Toss in the uncertainty with NASCAR and its teams still hammering out a new deal on revenue sharing and charter agreements, and you’ve got yourself a buyer’s market.

NASCAR is currently wrangling with its 15 chartered teams over extending the charter agreement, possibly locking it in for up to 14 more years. All these factors combined have driven down prices, hitting Stewart’s pocket hard. As per the information available, Front Row Motorsports agreed to pay around $20M-$25M for a charter from SHR.

The last time Front Row Motorsports ran three cars was back in 2019, fielding David Ragan, Matt Tifft, and Michael McDowell. But then, Tifft’s racing career was cut short after a seizure in October at Martinsville, leading Front Row to lease out a charter in 2020 and eventually sell one to Rick Ware Racing in 2021, shrinking back to a two-car team.

Flashback to August 2018, Front Row Motorsports scooped up BK Racing’s charter and some assets from bankruptcy court for a cool $2.08 million—a move that Jerry Freeze, the general manager, said had been a real financial boost for the team. This time around, with charters again up for grabs, Jenkins knew it was time to jump in again.

Expanding their lineup might lead Front Row Motorsports to look for a new base, especially since they’re cramped for space at their current spot. Jerry Freeze mentioned they’ve been chatting with Tony Stewart about renting out his shop for the next season. But even though they might be settling into a new space soon, courtesy of Stewart-Haas Racing’s old headquarters, Front Row could find themselves in a bit of a pickle when it comes to lining up drivers for their expanded team.

After wrapping up its charter deal, FRM will need to hustle to fill the seats

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Michael McDowell announced last month his departure at the end of the 2024 season from Front Row Motorsports, which leaves his #34 ride up for grabs for 2025. And with an additional charter coming in from Tony Stewart’s stable, the team will have to look at another empty slot to fill.

FRM might choose to get both a charter and a driver from Stewart’s lineup. Chase Briscoe’s name is floating around as a strong contender. That sorts out one seat, but there’s still another to fill. Josh Berry and Noah Gragson have been tearing it up this season, making them prime candidates. Or, FRM could dip into the Ford Xfinity pool, eyeing someone like Cole Custer or Riley Herbst, who’ve both had a stint or two with FRM already.

On the other hand, Dale Jr. is of the opinion that buying a charter is just not worth it. “They’re just too expensive. […] Right now, the business model looks terrible. […] When that all gets resolved, the value will then pop a little bit. And I think it just continues to grow annually as it naturally has. Right? Charters were selling for $2 million, $6 million, $12 million, $20 million, 30, and $40 million.”

“And now they’ve kind of ratcheted back down just a, just a little bit. But, ’cause I felt like that was probably more rare if they’re selling for 25, $30 million, I feel like that’s probably a more realistic value of the charter,” he shared on his podcast. Similarly, Keselowski stated that he was “30M short” to purchase a charter. However, with charter values potentially hitting $100 million in the future, now seems to be the right time for teams that want to expand.

Only time to tell what will happen next, but SHR’s closure has surely shaken the otherwise stable NASCAR scene.