#NASCAR Implements Team Owner Charter Agreement for NASCAR Sprint Cup Series

During a historic event held today in Charlotte, N.C., NASCAR Chairman and CEO Brian France joined with NASCAR Sprint Cup Series team owners to announce a landmark long-term agreement that provides teams with increased business certainty and the ability to work more closely with NASCAR to produce best-in-class racing.

In effect as the 2016 NASCAR season prepares to kick off this weekend, the new Charter system addresses three key 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 growth initiatives together with our track partners, auto manufacturers, drivers and sponsors. The Charters also are transferable, which will aid in the development of long-term enterprise value for Charter members.”

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.

Similar to the five-year sanctioning agreements that NASCAR begins with tracks in 2016, team owner Charter agreements allow for longer planning cycles around competition, innovation, digital marketing, governance and research and development.

“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.

“NASCAR and the teams share a desire to preserve, promote and grow the sport and ultimately produce great racing for our fans and partners. These common goals served as the foundation for discussions and helped bring us to this unprecedented agreement. This is a great step forward for the entire sport made possible by Brian France setting a new course for the NASCAR industry and the owners coming together on shared issues. Everyone involved then compromised a bit to be able to come up with something that worked for all.”

Each Charter team owner has a guaranteed entry into the field of every NASCAR Sprint 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 said. “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.”

NASCAR Charter teams

(Listed by historical inception of race team entity, then numerical)

 

2015 Car #	2016 Car #	Organization
43	43	Richard Petty Motorsports
9	44	Richard Petty Motorsports
3	3	Richard Childress Racing
27	27	Richard Childress Racing
31	31	Richard Childress Racing
2	2	Team Penske
22	22	Team Penske
5	5	Hendrick Motorsports
24	24	Hendrick Motorsports
48	48	Hendrick Motorsports
88	88	Hendrick Motorsports
6	6	Roush Fenway Racing
16	16	Roush Fenway Racing
17	17	Roush Fenway Racing
1	1	Chip Ganassi Racing
42	42	Chip Ganassi Racing
11	11	Joe Gibbs Racing
18	18	Joe Gibbs Racing
20	20	Joe Gibbs Racing
15	TBD	Michael Waltrip Racing
55	TBD	Michael Waltrip Racing
4	4	Stewart-Haas Racing
10	10	Stewart-Haas Racing
14	14	Stewart-Haas Racing
78	78	Furniture Row Racing
35	34	Front Row Motorsports
38	38	Front Row Motorsports
47	47	JTG Daugherty Racing
7	7	Tommy Baldwin Racing
13	13	Germain Racing
32	32	Go Fas Racing
23	23	BK Racing
83	83	BK Racing
62	62	Premium Motorsports
33	95	Circle Sport Racing
51	15	HScott Motorsports

Fast Facts: 

• • This long-term agreement is for nine years.
• • There are 36 Charter teams, currently from among 19 organizations. The number 36 was not pre-determined -- NASCAR analyzed which teams showed a long-term commitment to the sport by attempting to qualify every week for the past three years. That criteria yielded 36 Charters.
• • Because of the above criteria, the following teams do not have Charters: the No. 19 of Joe Gibbs Racing, the No. 21 of Wood Brothers Racing, the No. 41 of Stewart-Haas Racing and the No. 46 of HScott Motorsports.
• • A Charter guarantees entry into the field of every Sprint Cup Series points race. Qualifying speeds still determine the lineup.
• • Sprint Cup Series fields will shift from 43 cars to 40 cars. That means 36 Charter teams are guaranteed to make every points race, and four non-Charter (or "open") teams will complete the rest of the field.
• • Charter owners may transfer their Charter to another team, for one full season, once over the first five years of the agreement.
• • Charter teams are held to a minimum performance standard. If a Charter team finishes in the bottom three of the owner standings among all 36 Charter teams for three consecutive years, NASCAR has a right to remove the charter. 
• • Teams may sell their Charters on the open market.
• • Organizations now have a hard cap of four cars; there will be no fifth car for rookie drivers.