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How Are NASCAR Drivers Paid for Races During the Season?

Neha Dwivedi
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NASCAR Cup Series driver Denny Hamlin (11) during qualifying for the Goodyear 400 at Darlington Raceway.

Bob Pockrass has consistently delivered updates on the purse values for each NASCAR race week. However, the breakdown of how these funds are distributed among drivers and teams has become less transparent over time. Up until 2015, NASCAR routinely publicized the purse details in their race summaries, providing insight into potential earnings from race to race.

Historically, drivers would negotiate agreements with team owners, often securing a base salary coupled with a slice of the race purse, which fluctuated weekly. The landscape shifted significantly in 2016 with the implementation of the Charter System. The change introduced 36 ownership charters, each assessed based on a team’s historical performance and recent results.

Now, compensation for chartered teams is structured around a mix of guaranteed revenue, performance-based incentives calculated over the previous three seasons, a points fund that pays in cash, and the traditional race purse that varies depending on how well a driver finishes.

A Joe Gibbs Racing official recently shed light on these nuances in a recently released YouTube short video, explaining the current dynamics of financial distributions in NASCAR racing.

“Our drivers not only have a base salary but yes they get a portion of the purse just like the team does. So, a driver has an incentive to win a race. So, every week when we get the purse paid out that purse gets divided.”

“A portion goes to all the employees on an employee bonus. A portion goes to the team and a portion goes to the driver based on their weekly finishing position and their year-end finishing position,” he said.

Besides that, many fans also mistakenly believe that NASCAR drivers receive extra pay for testing on the tracks. However, the JGR insider clarified in a video posted in October 2024, “Not extra! That’s part of their job; that’s part of their salary.”

He detailed that since the onset of COVID-19, live testing at tracks has been curtailed to a mere 20 minutes — far less than in years past. Drivers see these brief testing sessions not as a burden but as a crucial tactical edge. These opportunities allow them to familiarize themselves with updates in track conditions, tire performance, and vehicle adjustments.

The insider asserted that the preparation plays an important role in their performances arguing that it helps them prepare for the track. So, usually, any chance to drive the car live on a racetrack is eagerly seized by the drivers because it sharpens their edge for Sunday[s].

Alex Bowman tackles a common misconception among NASCAR fans regarding driver earnings

When drivers are quizzed by The Athletic about what they wish fans knew about their world, they often highlight the hectic grind of their schedules and the amount of effort that unfolds behind the scenes. They hope fans grasp the rigorous nature of their weekly commitments or appreciate the sweat equity invested away from the public eye.

It’s because — this side of the track life isn’t always visible to the grandstands but is every bit as intense as the races themselves. Bowman, on the other hand, took the opportunity to address the notion that all drivers earn hefty sums. He explained,

“The fans think the drivers all get paid a ton of crazy money, which largely went away in the last 10 or 15 years. This side of the sport is quite a bit different than what the fans think at times.”

He underlined how the economic landscape within NASCAR has shifted significantly. With major brands redirecting their focus away from NASCAR, the financial dynamics have changed, leaving drivers more reliant on sponsorships than before.

Post Edited By:Srijan Mandal

About the author

Neha Dwivedi

Neha Dwivedi

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Neha Dwivedi is an experienced NASCAR Journalist at The SportsRush, having penned over 1900 articles on the sport to date. She was a seasoned writer long before she got into the world of NASCAR. Although she loves to see Martin Truex Jr. and Kyle Busch win the races, she equally supports the emerging talents in the CARS Late Model and ARCA Menards Series.. For her work in NASCAR she has earned accolades from journalists like Susan Wade of The Athletic, as well as NASCAR drivers including Thad Moffit and Corey Lajoie. Her favorite moment from NASCAR was witnessing Kyle Busch and Martin Truex Jr. win the championship trophies. Outside the racetrack world, Neha immerses herself in the literary world, exploring both fiction and non-fiction.

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