NASCAR’s Charter System: A Decade of Stability and Emerging Tensions

The 2025 NASCAR Cup Series season ushers in a new era for the sport’s ownership charter system, marking a decade since its inception and the commencement of the second charter agreement. This latest agreement, set to run from 2025 to 2031, coincides with the launch of a significant antitrust lawsuit filed by two teams, alleging violations by the sanctioning body stemming from the charter extension negotiations.

At its core, the NASCAR ownership charter system grants specific entries guaranteed starting positions in every Cup Series race and provides a foundational level of revenue. The initial charter agreement, operative from 2016 to 2024, was structured to align with the sport’s television rights deals. The current agreement mirrors this structure, extending through the next broadcast rights cycle. In exchange for these benefits, charter holders are obligated to participate in agreed-upon marketing initiatives and allow NASCAR to utilize their intellectual property for promotional purposes.

The system has fostered an environment where charters are increasingly viewed as akin to franchises in traditional stick-and-ball sports. Each car number, under this framework, represents a distinct entity with a guaranteed place in the field. However, the fundamental difference, and a key point of contention in the ongoing lawsuit, lies in the NASCAR Cup Series not operating as an equal partnership, unlike many professional sports leagues.

There are currently 36 ownership charters in NASCAR, each conferring a share of the series’ collective benefits. The primary advantage remains the assurance of a starting spot in every event, regardless of the number of non-chartered entries attempting to qualify. This guarantees a baseline of competitive presence for charter teams. Furthermore, similar to revenue sharing in other major sports, charter teams receive financial benefits derived from television contracts and licensing agreements, as stipulated within the charter agreement.

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The financial value of these 36 charters is not uniform. A charter’s worth is intrinsically linked to the recent performance of its associated car, with the past two seasons serving as a primary metric. A team’s year-end payout is calculated through a formula that factors in both the charter’s value and the team’s final standing in the championship. This performance-based valuation system incentivizes consistent competitiveness and strategic investment in team operations.

Beyond financial and competitive assurances, the charter system also provides a degree of influence in decision-making processes. This structure draws parallels to the Concorde Agreement in Formula 1, establishing a framework for dialogue between NASCAR and its teams on competition-related matters. A significant portion of the teams are unified under the Race Team Alliance (RTA), a union-like entity that operates its own media platform, Racing America, and maintains a dedicated negotiating committee to address business-related issues with NASCAR.

While the maximum field size for a Cup Series race is 40 cars, meaning up to four non-chartered entries can theoretically qualify, these teams receive significantly less purse money compared to their chartered counterparts. This disparity underscores the economic advantage afforded by charter ownership.

The introduction of the charter system was designed to create a sustainable economic ecosystem within NASCAR team ownership. From its inception, NASCAR and the RTA aimed to build long-term value for team ownership and simultaneously foster competition for acquiring charters. The underlying principle was that a charter would possess intrinsic value, making it a marketable asset upon a team’s potential sale. In previous eras, teams ceasing operations often saw their assets, beyond physical infrastructure, depreciate rapidly, with cars quickly becoming obsolete and equipment sold at a substantial loss. The escalating value of charters has thus generated a dynamic supply and demand on the open market.

Adding to the long-term economic strategy is the ongoing implementation of the Next Gen car, now in its fourth season. While cost containment has not yet been fully realized, the car’s design as a de facto spec vehicle, with identical components aside from engines and bodies, is intended to reduce operational expenses over time as parts become standardized and inventory increases. The theory posits that a reduction in competition costs, coupled with potential growth in future broadcast rights revenue, will lessen team reliance on sponsorship funding for financial stability.

Each ownership charter possesses the unique provision of being leased to another organization for a single season within an agreement period, after which it must be returned to its original owner. The charter agreements have historically been tied to the duration of NASCAR’s television rights contracts. The initial agreement spanned from 2016 to 2020, followed by the current agreement from 2021 to 2024, coinciding with the broadcast deals with FOX and NBC. The upcoming agreement, from 2025 to 2031, will include FOX, NBC, TNT, and Amazon Prime, signaling an expansion of broadcast partners.

The number of charters, currently fixed at 36, remains subject to NASCAR’s discretion, with corresponding adjustments to payout structures. Over the years, many charters have been sold or leased, leading to a complex lineage for each entry.

Charter Lineage and Current Holdings (as of 2025 Season):

• Trackhouse Racing No. 1: This charter, originally awarded to Chip Ganassi Racing in 2016 and driven by Jamie McMurray, later saw Kurt Busch as its pilot. Trackhouse Racing acquired it following its purchase of Ganassi’s NASCAR assets after the 2021 season. Ross Chastain, previously in the No. 42, now drives the No. 1.

• Team Penske No. 2: Consistently aligned with the No. 2 car, this charter was driven by Brad Keselowski at its inception and continues with Austin Cindric, who succeeded Keselowski in the seat.

• Richard Childress Racing No. 3: This charter has remained with Richard Childress Racing and associated with the No. 3 car, driven by Austin Dillon since its inception.

• Front Row Motorsports No. 4: This charter has a recent history with Stewart-Haas Racing, driven by Kevin Harvick and then Josh Berry. It was sold to Front Row Motorsports in 2024, a transaction that became part of the ongoing antitrust litigation. Noah Gragson is the current driver.

• Hendrick Motorsports No. 24: Originally awarded to Hendrick Motorsports as the No. 5 car driven by Kasey Kahne, it transitioned to the No. 24 when William Byron graduated to the Cup Series in 2018. Byron remains the driver.

• Team Penske No. 12: This charter’s lineage traces back to Roush Fenway Racing’s No. 6. After a lease to JTG Daugherty Racing, it was sold to Team Penske, establishing the third car for Ryan Blaney, who has driven it since its inception with Penske.

• Kaulig Racing No. 16: Awarded to Tommy Baldwin Racing in 2016, this charter has seen multiple ownership changes, including Leavine Family Racing and Spire Motorsports, before being acquired by Kaulig Racing prior to the 2022 season. AJ Allmendinger has been a primary driver.

• Legacy Motor Club No. 42: This charter originated with Richard Petty Motorsports as the No. 9. It underwent several renumberings and leases before becoming part of Petty GMS and subsequently Legacy Motor Club. John Hunter Nemechek is the current driver.

• 23XI Racing No. 35: Initially associated with Stewart-Haas Racing’s No. 10, driven by Danica Patrick, Aric Almirola, and Noah Gragson, this charter was sold to 23XI Racing in 2024. The approval process was influenced by the ongoing lawsuit, leaving its status in a state of legal review. Riley Herbst is the driver.

• Joe Gibbs Racing No. 11: This charter has been a constant with Joe Gibbs Racing and the No. 11 car, driven by Denny Hamlin since its inception.

• 23XI Racing No. 23: This charter originated with Germain Racing’s No. 13. It was sold to Denny Hamlin and Michael Jordan to form 23XI Racing. Similar to the No. 35, its chartered status is currently under legal scrutiny due to the antitrust lawsuit. Bubba Wallace is the driver.

• Trackhouse Racing No. 88: This charter was previously associated with Stewart-Haas Racing’s No. 14, piloted by Tony Stewart, Clint Bowyer, and Chase Briscoe. It was acquired by Trackhouse Racing prior to Stewart-Haas Racing’s closure. Shane Van Gisbergen is the driver.

• Haas Factory Team No. 41: Originally awarded to Michael Waltrip Racing and immediately sold to Stewart-Haas Racing, this charter has been linked to the No. 41 car for most of its history. Following Stewart-Haas Racing’s downsizing, the charter was retained by the newly formed Haas Factory Team. Cole Custer is the driver.

• RFK Racing No. 6: This charter began as Roush Fenway Racing’s No. 16. It was renumbered to the No. 6 when the original No. 16 was leased out. Brad Keselowski, now a co-owner, drives the car.

• RFK Racing No. 17: This charter has remained with Roush Fenway Racing (now RFK Racing) since its inception, consistently associated with the No. 17 car. Chris Buescher is the current driver.

• Joe Gibbs Racing No. 54: This charter originated as Joe Gibbs Racing’s No. 18, driven by Kyle Busch. It was renumbered to the No. 54 when Ty Gibbs joined the team.

• Joe Gibbs Racing No. 20: This charter has been associated with Joe Gibbs Racing’s No. 20 car, previously driven by Matt Kenseth and Erik Jones, and now by Christopher Bell.

• Team Penske No. 22: This charter has been consistently associated with Team Penske and the No. 22 car, driven by Joey Logano throughout its tenure.

• Spire Motorsports No. 7: Awarded to BK Racing as the No. 23, this charter has seen numerous ownership and numbering changes, including Front Row Motorsports, Rick Ware Racing, and eventually Spire Motorsports, where it currently resides as the No. 7. Justin Haley is the driver.

• Hendrick Motorsports No. 9: Originally the No. 24 for Hendrick Motorsports, it became the No. 9 when William Byron moved to the No. 24. Chase Elliott is the current driver.

• 23XI Racing No. 45: This charter’s lineage traces back to Richard Childress Racing’s No. 27. After being leased to StarCom Racing, it was sold to 23XI Racing. Tyler Reddick is the driver. Its chartered status is also subject to the ongoing antitrust legal proceedings.

• Richard Childress Racing No. 8: Awarded to Richard Childress Racing as the No. 31, it was renumbered to the No. 8 in 2019. Kyle Busch is the current driver.

• Wood Brothers Racing No. 21: Originating as GoFas Racing’s No. 32, this charter was leased and then sold to Wood Brothers Racing. Josh Berry is the 2025 driver.

• Spire Motorsports No. 71: This charter has the most complex ownership history, beginning with Circle Sport Racing. It has passed through multiple hands and configurations before being acquired by Spire Motorsports. Michael McDowell is the driver.

• Front Row Motorsports No. 34: This charter has remained with Front Row Motorsports since its inception, associated with the No. 34 car. Todd Gilliland is the driver. Its chartered status is also affected by the antitrust lawsuit.

• Rick Ware Racing No. 51: Initially awarded to Front Row Motorsports as the No. 38, it was sold to Rick Ware Racing in 2019 and has seen frequent number changes to maintain charter status. Cody Ware is the current driver.

• Trackhouse Racing No. 99: This charter began with Chip Ganassi Racing’s No. 42. It was acquired by Trackhouse Racing and renumbered to the No. 99. Daniel Suarez is the driver.

• Legacy Motor Club No. 43: Originally Richard Petty Motorsports’ No. 43, it transitioned through Petty GMS and now operates as Legacy Motor Club’s No. 43. Erik Jones is the driver.

• HYAK Racing No. 47: This charter has been with JTG-Daugherty Racing since 2016. Ricky Stenhouse Jr. is the driver, and the team has rebranded as HYAK Racing for 2025.

• Hendrick Motorsports No. 5: This charter originated as Hendrick Motorsports’ No. 48, driven by Jimmie Johnson. It transitioned to the No. 5 upon Johnson’s retirement, with Kyle Larson as the current driver.

• RFK Racing No. 60: Awarded to HScott Motorsports, this charter was sold to Premium Motorsports and later Rick Ware Racing. It is currently leased to RFK Racing for Ryan Preece.

• Joe Gibbs Racing No. 19: Originally Michael Waltrip Racing’s No. 55, it was sold to Joe Gibbs Racing and has been associated with the No. 19 car, driven by Martin Truex Jr. since 2019. Chase Briscoe will take over in 2025.

• Spire Motorsports No. 77: This charter began as Premium Motorsports’ No. 62, leased to HScott Motorsports, then sold to Furniture Row Racing, and later acquired by Spire Motorsports. Carson Hocevar is the driver.

• Kaulig Racing No. 10: This charter originated with Furniture Row Racing’s No. 78. It passed through Spire Motorsports and Trackhouse Racing before being purchased by Kaulig Racing. Ty Dillon will drive the No. 10 in 2025.

• Front Row Motorsports No. 38: Awarded to BK Racing as the No. 83, this charter was sold to Front Row Motorsports in 2018. Zane Smith is slated to drive the car in 2025. Its chartered status is also subject to the antitrust lawsuit.

• Hendrick Motorsports No. 48: This charter began as Hendrick Motorsports’ No. 88, driven by Dale Earnhardt Jr. It became the No. 48 when Alex Bowman, previously in the No. 88, took over. Bowman continues to drive the No. 48.

The ongoing antitrust litigation highlights the evolving dynamics and inherent tensions within NASCAR’s charter system, as teams navigate its economic benefits and the perceived limitations it imposes. The 2025 season, therefore, not only represents a new chapter for the charter agreement but also a critical juncture in the sport’s governance and team-owner relations.

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