NASCAR President Defends $30 Million Contentious System After Reported Skyrocketing Prices

In the NASCAR Cup Series, there is something known as the charter system. This is a feature where teams enjoy the perks of competing in the Cup arena. Of course, this does have its fair share of critics, as the teams’ values vary, depending on novelty and car performance. In addition to that, the price to buy a charter has skyrocketed. Now, NASCAR president Steve Phelps has staunchly defended the system.

He said, “I think the charter system has been very good for NASCAR. If you look at it, there are many positive things. What do you get when you buy a charter? You get three things, guaranteed entry which helps the teams from a sponsorship standpoint. Two pieces of revenue, fixed revenue and then revenue that you compete for on the race track, I think both are important. The third piece is governance. Even the top competition guys, they’ve got meetings all the time. Working with their race teams to move the sport forward from a competitive standpoint.”

What else did the NASCAR president say?

Just recently, it transpired that if teams wanted to buy a charter, it would cost around $30 million dollars. This system was introduced in 2016 and has been implemented ever since. Of course, Phelps acknowledged that it is far from perfect, but it is still the right direction for them.

He continued, “So I would say that the charter system, although not perfect, has worked really well. You look at the enterprise value, which I’m not going to get into what charters are going for and what they were at. But the number right now, is a significant multiple of what it was three years ago. We have people who want charters that are in the sport and that are outside the sport, that can’t get them right now. The teams are holding them, that’s their right. Whether we want that to happen or not, there’s nothing we can do about that. Do I think that we’ll extend the charters? I do, Do i think its a good thing for the sport? I do.”

One thing is for sure, buying a charter is an expensive business. Last year, when 23XI Racing bought a charter for Kurt Busch, it cost $13.5 million dollars, and the price has only gone up since.

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