Hendrick Motorsports driver Kyle Larson co-owns the High Limit Sprint Car Series along with five-time World of Outlaws champion, Brad Sweet. In December 2023, they announced they will introduce a charter system, similar to the one in NASCAR, by the end of the 2024 season. The goal was to have 10 fully functioning charters by the end of 2026, and begin revenue distribution.
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Since the format they chose is similar to NASCAR’s, they have been able to learn and adapt from the mistakes made by the bigger promotion. And, it’s quite an extensive list to learn from.
Last month, the premier stock car racing promotion had to threaten to retract its charters to get the new agreement signed by team owners. Yet, 23XI Racing and Front Row Motorsports, went to court against it.
All this chaos is proof that NASCAR has not yet fine-tuned the charter system. Can Larson do it?
“We want it fair for everybody,” he said in an interview last month. “So, we’re trying. Obviously, it’s on a way smaller scale so I don’t know if that makes it easier or harder. But yeah, we’re trying to figure out our own charter system.”
Larson believes that the way the sport has grown in popularity will help in implementing the charter system better.
“I think it’s just about continuing to try to figure out what it is to grow the sport and the financials and make it even better for teams than it has been,” he noted. “I think this year’s been great because there’s more money to race for between all series and bigger events.”
Why is the High Limit Series opting for a charter system?
After all the charters are established in the High Limit Series, 50% of the media revenue will go to the teams owning them. They will receive the check in monthly instalments that will vary based on team performance and other factors.
However, doubts linger. Why go for it when a giant like NASCAR is struggling with it?
“What we want to do is build High Limit and truly align ourselves with the team owners, who are the backbone of the sport and allow us (drivers) to showcase our skillset. We want to reward teams with a charter or franchise that aligns our interest so a revenue share as we grow together, they’ll be a part of the growing process,” Sweet explained to The Sports Business Journal.
The promotion will not allow teams to trade or lease these charters to others. Each owner can have a maximum of two charters. Its implementation is going to be a big challenge for Larson and Sweet. But they appear to be fully conscious of the purpose it serves and its implication on the sport.
The top five teams of 2024 will be awarded the first set of charters.
