(Front Office Sports) — The value of a NASCAR Cup Series team charter has reached $12 million, doubling last year’s asking price of $6 million, according to Sports Business Journal.
Charters — which were implemented in 2016 by executives and team owners — provide teams with increased business certainty and the ability to work in conjunction with NASCAR.
The surge in value is the result of increased demand in NASCAR with the introduction of the Next Gen car and a revamped business model, which promotes cost-saving. There are 36 charters in a field of 40 cars that compete in the NASCAR Cup Series.
- Owning a charter guarantees a portion of the purse for every NASCAR Cup Series points race.
- NASCAR has the right to remove a charter if a team finishes in the bottom three of the owner standings for three consecutive years.
The Good and Bad
NASCAR went from a public company to a private one in 2019 after buying the balance of International Speedway Corporation for roughly $2 billion.
The company stopped releasing earnings after the 2015 season, but driver Jimmie Johnson revealed in November that its earning potential has dropped by roughly 50% since then.