The NASCAR Charter System has been in use for nearly 10 years now, guaranteeing a starting spot for every charter member car in every points race on the Cup schedule. Along with that guaranteed spot, it also ensures that those teams would each receive a portion of the sport's television revenue — currently about 25 percent of the tv money.
As for the rest, the tracks collect 65 percent with the remaining 10 percent going to NASCAR itself.
That current system wasn't renewed, and NASCAR and the teams have hit rock bottom regarding discussions about the next deal.
It has gotten so tough that the race teams appear to be seeking legal representation, especially if they can't reach an agreement for an increase in the revenue sharing from the sport.
There is no excuse for NASCAR to be so stingy towards its teams given how large the new TV deal is.
Jeff Gordon raised plenty of interesting thoughts on his appearance on the Dale Jr. Download. One of his biggest points was the fact that Hendrick Motorsports hasn't made a profit in some time. That is crazy given how successful it has been over the past decade.
"I don't think Hendrick Motorsports has made a profit in 10 years," Gordon told Earnhardt. "And then you say, 'Well, why do you do it?' Well, it's because Rick Hendrick loves the sport. He loves cars and it's been good branding you know."
Hendrick Motorsports has 14 Cup Series championships and more than 300 wins in NASCAR, and it hasn't made a profit in over a decade. That's just insane and shows how the current NASCAR financial model is broken.
According to Gordon, without the B2B connections and the many dealerships Hendrick owns in the Hendrick Automotive Group, it wouldn't be where it is today.
"But, if we didn't have all the B2B, and we're one of the few teams out there, very fortunate to be able to have the B2B to tie Hendrick Automotive Group and Hendrick Motorsports together and bring these sponsors in," Gordon said. "I don't know where that would put us if we didn't have that. And there's a lot of teams out there and that's where this negotiating committee has come along. We gotta look and think about all the teams."
That's why the hiring of an antitrust lawyer could go a long way for all the teams in the sport. They have to do something to show how serious they are, or NASCAR isn't going to budge.
As for Hendrick Motorsports' profit & loss statement for 2024, we will see how winning the Daytona 500 affects the team's fortunes.
