An article by the Sports Business Journal gives new details on what happened in order for NASCAR and race team executives to be able to announce the new Charter System last week.
The process of getting to the system that gives teams financial security and a guaranteed starting spot in a reduced field of 40 cars began in the summer of 2014 when the representatives from the newly formed Race Team Alliance met with lawyers from NASCAR.
A year and a half later, the system was introduced with 36 available charters.
The SBJ article explains some of the concessions each side had to make in order for it to happen.
Says the report:
A source said that the RTA pushed for teams to no longer be charged for certain administrative costs like credentials — which collectively cost teams around $8 million annually — but didn’t get that provision in the end. On the other hand, NASCAR, which traditionally has held a near iron-grip on all competition-related decisions, gave up some of its autonomy in order to grant teams a greater say in the sport’s governance.
The article also states that TV revenue distribution will not change with the new system, with racetracks being given 65 percent, 25 percent going to race teams and NASCAR taking the remaining 10 percent.
The entire report, including comments from RTA chairman Rob Kauffman and NASCAR executives, can be read at the Sports Business Journal.