NASCAR has been in negotiations with race teams over a new charter agreement as the current one is set to expire at the end of 2024. Throughout the process, it has been very up and down as race teams believe the negotiations haven’t gone well. However, there appears to have been some progress over the last few months.
During the annual “State of the Sport” address last week, NASCAR president Steve Phelps gave an overview of where he believes everything stands right now with the teams. Overall, it sounded like a positive update that seems to be going in the right direction.
“If you would ask the race teams do we think we’re making progress with NASCAR on where things stand in the extension of our charters, I think our race teams would say yes,” Phelps said. “We understand that race teams want three things. I’ll talk about charters specifically or Cup specifically. Honestly, it’s the same thing for Xfinity and Trucks.”
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“If you think about race teams, what do they want? They want to be competitive on the racetrack, they want to make sure they’re break-even or profitable. As it relates to the charter specifically, they want to increase their enterprise value. I won’t get into numbers where we stand from an enterprise value standpoint, but when the charters change hands at the end of the year, we know at least one will, there will be a significant multiple that race teams will have from a charter enterprise value standpoint.”
It is very important for NASCAR and its teams to figure this out. There are financiers and more that need to be planned out in advance by teams and this is slowing down their efforts. Everyone wants to see a new deal and hopefully, something can be reached before the start of the 2024 season.
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