Explaining NASCAR’s new charter system
After the Tuesday announcement of NASCAR’s new charter system, you likely have questions about it. And since we’re all about the people here at From the Marbles, we have some answers. Hopefully. Below is a list of questions regarding the new ownership structure and answers to those questions.
Who got charters?
36 cars from 18 teams will have charters. You can view the full list of charters here.
What does the charter entail?
It’s a franchising system. Of sorts. (Almost) anyone can still form a Cup Series team and attempt to compete in the sport. But the 36 charter teams now have a guaranteed starting spot in every race for the next nine years as well as a greater share of the revenue pie (which is quite large, given that NASCAR is in the midst of a 10-year, $4.4 billion TV contract).
Just as importantly, the charter is transferable. If an owner wants to get out of NASCAR, he or she can sell his charter for a significant sum. Before the charter system, outgoing teams were worth only as much as their equipment (pennies on the dollar) and possibly the owner’s points it accrued the year before. But owner’s points were only good for the first few races of the upcoming season. The charter is worth a whole hell of a lot more.
How could a team get a charter?
It had to run a full season for the past three years. While most of the powerhouse teams have charters, not all of them do.
Who doesn’t have a charter?
Most notably, the No. 41 car of Kurt Busch at Stewart-Haas Racing and the No. 19 car of Carl Edwards at Joe Gibbs Racing. The Wood Brothers don’t have a charter either, but more on that in a bit.
What do SHR and JGR do for those two teams?
They buy a charter. Michael Waltrip Racing got two charters because its now-defunct Nos. 15 and 55 cars ran the full season from 2013-2015. Chip Ganassi Racing co-owner Rob Kauffman, formerly a partner at MWR, retains the rights to MWR’s two charters. He’s going to sell a charter to SHR and a charter to JGR.
How much is Kauffman selling his charters for?
He declined to give a specific number, but said it was in the “single digit” millions.
Are fields still 43 cars?
No. Cup Series fields, just like Xfinity Series fields, are now at 40 cars.
Why?
We’ll look at this with a short term view; there was a significant chance that 43-car fields could have been short at times in 2016. More than 45 cars attempted to qualify for races nine times in 2015. And not only are the two MWR cars gone, Front Row Motorsports and BK Racing are fielding one less car in 2016. That’s four fewer full-time cars, and some smaller teams consolidated too.
Are the smaller teams getting screwed?
Well, when have teams without the most resources ever been at an advantage? There are still four spots available on speed every week outside of the 36 guaranteed entries, so if you have a fast car, you can drive your way in to the race.
And are you really going to notice three fewer cars on track throughout the course of a race? If so, just temporarily think of the shortened fields as a flashback to the days of teams starting and parking in the Cup Series and that three cars have headed to the pits not long after the race has started.
Back to the Wood Brothers, why don’t they have a charter?
Because they didn’t compete full-time in over the past three seasons. Yeah, you can think it’s a grave injustice that one of NASCAR’s historic teams doesn’t have a charter, but don’t feel too poorly for the Wood Brothers.
The team’s qualifying circumstances haven’t changed from 2015 to 2016. As a part-time team in 2015, the team had no provisionals to fall back on. And with a Team Penske alliance, the No. 21 will be by far the fastest non-charter car every week. Qualifying shouldn’t be too much of an issue.
Should the Wood Brothers have gotten a charter based on sentimental reasons? Absolutely. And we’re guessing a charter for the team was discussed at length throughout the negotiations between teams and NASCAR. But adding the team into the final 36 meant kicking someone who fit the criteria out.
Besides, the team can always buy a charter.
Can a charter be leased?
Yes, if a team doesn’t want to immediately sell a charter, it can lease it for a season once in a five year period and it appears that has already happened. Per Motorsport, the Premium Motorsports charter is being leased to HScott Motorsports for Michael Annett.
Do we blame Premium for going after the reported $1.6 million it’ll get for its charter? Not really. Given the lack of full-time teams in 2016, the money made from the lease will likely make up for the race or two that it may miss throughout the season.
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Nick Bromberg is the editor of From The Marbles on Yahoo Sports. Have a tip? Email him at [email protected] or follow him on Twitter!
