Nascar Reveal Restructure of Business Model With New Charter System

 

NASCAR has announced a new long-term agreement that will see a restructure of its business model of team ownership.

Chairman and CEO Briant France revealed details of a new Charter system that is expected to increase team value and sustainability for owners competing in NASCAR's premier series.

With the 2016 NASCAR season kicking off this weekend, the new Charter system addresses three areas - participation, governance and economics - to promote a more predictable, sustainable and valuable team business model.

The agreement grants NASCAR Sprint Cup Series Charters to 36 teams, establishes a Team Owner Council that will have formal input into decisions, and provides Charter teams with new revenue opportunities including a greater interest in digital operations.

"Today represents a landmark change to the business model of team ownership in NASCAR," France said.

"The Charter agreements provide nine years of stability for NASCAR and the teams to focus on the growth initiatives together with our track partners, auto manufacturers, drivers and sponsors."

The system affords Charter teams that remain in good standing more predictable revenue over the nine years of the agreement.

Along with improved financial certainty, the new framework is designed to increase the long-term market value of teams and provide the ability to plan farther ahead with existing, new and prospective partners.

"The new Charter program strengthens each of our businesses individually and the team model as a whole, which is good for NASCAR, our fans, drivers, sponsors and the thousands of people who we employ," said Rob Kauffman, co-owner of Chip Ganassi Racing.

"This will give us more stability and predictability, and it will allow us to take a more progressive, long-term approach to issues."

Each Charter team owner has a guaranteed entry into the field of every NASCARSprint Cup Series points race. To maintain the historical openness of NASCAR racing, the balance of the field will be open for team owners who do not hold Charters.

These Open team owners will compete for the remaining starting spots and positions in the race, as each event in the NASCAR Sprint Cup Series' starting lineup shifts in 2016 to a 40-car field.

"The new team owner agreements will offer a more appealing environment for both current and prospective team owners at the NASCAR premier series level," France added.

"I've always stressed that if we can do things to improve the business of our stakeholders, we will pursue it. I'm very proud of what we've accomplished today with this agreement."