NASCAR is a sport that revolves around big purses. It’s a known fact that a lot of money goes into getting a single car out on the track. Thankfully, NASCAR gives out a hefty chunk of money to the winning team. But while winning is the need of the hour, it is indeed hard provided that 36-odd cars throttle at full speed. Moreover, the prize money alone is not enough for the teams to survive. So, what do the teams do to maintain their footing?
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They rely on the charters. The charters provide the teams with some extra incentives (a guaranteed starting position in every race, for example) and also safeguard their investments in the sport. On that note, one might wonder how much money these charters actually generate and how helpful these charters are for the teams, money-wise.
Unfortunately, NASCAR has never revealed the exact amount for any team to this day. However, what we do know is that the teams receive a certain amount of money every time they run a race, which is unequal for every team, the highest being the payout that the winning team receives. Nevertheless, several press reports, which have again not disclosed their sources say that the annual revenue that a charter generates is somewhere between $8 and $9 million.
Why are the teams unhappy with NASCAR?
The money awarded for winning races is far from being enough to sustain the year-long expenses of a full-fledged NASCAR team. Even the $9 million purse is not sufficient. The race teams still need to look for reliable sponsors who will invest in their cars.
Reports say it takes roughly $10 million a year to field a single car. One could only imagine how much money bigshot teams like Hendrick Motorsports, who have multiple cars on its roster, spend each year competing in NASCAR’s elite racing series.
By the grace of the new media deal, NASCAR will be earning an annual sum of $1.1 billion on average, through 2031, which is about 34% more than what it has made in the last 10 years. According to a 2024 bond rating note via S&P Ratings, “the business, excluding the France family-owned racetracks, generates about $140 million in free cash flow a year.” Thus, the teams desire to be paid more, provided NASCAR is making more money than ever.
