With NASCAR looking for a new media rights deal, NASCAR teams are looking for improved revenue from the deal.
NASCAR has been in disagreement regarding how to share the revenue from the TV deals. Last October a negotiating team representing Cup Series organizations demanded changes in NASCAR’s business model for the long-term fiscal sustainability of the teams.
However, NASCAR didn’t agree with the proposal forwarded by the team.
Teams say that they are finding it hard to make profits. NASCAR’s revenue stream of $8.2 billion, with Fox Sports and NBC Sports, is set to expire after 2024.
As per the TV revenue agreement, which is the largest revenue stream, tracks get 65% of traditional media revenue, and 25% goes to teams and 10% to the sanctioning body. The teams earn about $8 million to $10 million per car, per year, from the sport’s governing charter system.
However, this amount is only for best-performing teams and the poorly performing teams get about half of that amount. However, this amount is not enough, says the teams, which require around $18 million for the top performers to run the annual operations of a single car.
So, as the new deal comes in, top-performing teams want $16 million-$18 million annually, which would be double the amount that they are getting right now.
Starting in 2025, teams are asking @NASCAR for about $16 million-$18 million in league revenue that can be earned per car, per year, for top performers, roughly double the current amount.
🔲 Teams also want to make the charter system permanent.https://t.co/PtmdMwhBvI
— Adam Stern (@A_S12) January 30, 2023
While NASCAR rejected the negotiating team’s proposal last October, it is believed that they are looking for solutions to find an agreement.
Otherwise, the teams are looking for additional sources of income and are considering staging offseason exhibition races.