The team is requesting four conditions in the new charter agreement: 1) 45% of traditional media revenue 2) Permanent charter 3) 33% of new revenue 4) Increased governance authorityGetty Images
NASCAR has floated the possibility of changing the terms of its charter system that would allow members of the French family to join teams, but officials said the idea could be withdrawn after opposition. That’s what it means. The two sides are negotiating a new revenue-sharing agreement that will begin next year in tandem with NASCAR’s new media rights agreement. The team is requesting four conditions in the new charter agreement: 1) 45% of traditional media revenue, 2) permanent charter, 3) 33% of new revenue, and 4) increased governance authority. No deal has been reached yet, but NASCAR has been trying to figure out how the deal will go over the past 18 months, including meeting with many teams individually, even though the Race Team Alliance initially wanted to negotiate within the organization. We’ve had discussions with the team at various times about what it would look like. own committee.
During discussions, NASCAR at times raised the possibility of changing a clause in the charter system that prevents family members of NASCAR owners from becoming competitors and taking stakes in teams, officials said. While the concept is not foreign, and NASCAR Chairman and CEO Jim France owns a team in IMSA, it is a concept that was received with some concern by some teams and the final There is a possibility that he will be excluded from the finals. An agreement has been reached, officials said. IMSA is a sports car facility owned by NASCAR Holdings.
Changing the clause could allow France and other families to reap some of the benefits of the sport’s charter system, which has increased in value 11 times in recent years. Teams have been reluctant to accept the proposal because it could harm the integrity of the sport, according to people familiar with the negotiations. NASCAR did not respond to a request for comment, but recently told teams that a full paper version of the offer is expected to be announced in the coming weeks.
The possibility of changing this clause was revealed in the wake of the cheating scandal that broke out in IndyCar at Team Penske, whose owner Roger Penske controls the series. This was just over a week after the outbreak. This situation caused the series to become controversial. Roger Penske is also a NASCAR team owner.
Under the current agreement, NASCAR requires that NASCAR, or any family member of a NASCAR owner, have direct control over the team if a family member of a NASCAR owner is involved in the active management of NASCAR Holdings, according to a copy of the contract. You agree not to acquire any intellectual or indirect rights or interests. Written by S.B.J. The clause provides certain exceptions, including allowing NASCAR to acquire the team for up to 12 months if deemed necessary while it searches for another buyer.
Another exception is if the French family is not involved in NASCAR’s operations. For example, former CEO Brian France is no longer an employee of NASCAR Holdings, so he would be free to purchase charters under those terms. The current charterparty was established in 2016 and runs until 2024. The topic of changing the clause had not been mentioned at the meeting for some time, according to some people familiar with the matter.
The team met with NASCAR last week for a team owners council meeting, where the topic of a charter agreement came up. While NASCAR is sticking with its proposal to renew the charter for seven years rather than make it permanent, NASCAR has told each team that it has no intention of ending the system and will work with all teams to They say they believe the system will work better. -Significant media deals.
Some teams also suggest starting a path towards permanence, even if it doesn’t happen during the next cycle from 2025 to 2031. While the teams have stuck together through negotiations, NASCAR has been given greater guarantees from NASCAR on its charters, with new charter agreements in place that technically do not require approval from a majority of teams, officials said. After that, some teams could sign offers from NASCAR in the coming months. One of the people said NASCAR hopes to finalize the deal by mid-June.
23XI co-owner Denny Hamlin spoke about whether the team remains united during a media session at Kansas Speedway last weekend. It’s just a tough situation because every team wants things to be a little different here and there.”
