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Conversations about how NASCAR is a business model for the teams that make up the sport have been ongoing for quite some time now. The highest echelon in stock car racing depends on several teams and drivers to make up what the sport is today, with a lot being said about how the business aspect of the sport needs to be taken care of.
One of the most recent developments in the ongoing debate between teams and top NASCAR officials has come in the form of the former announcing interest in exhibition races away from the governing body's umbrella. The Race Team Alliance, better known as RTA, is an alliance between all charter teams in NASCAR, grouping together to form a stronger voice in the sport. Along with aiming to protect their investments in the future, RTA also aims to aid the direction of the sport as a whole.
News of exhibition races outside the governing body's umbrella broke when Wasserman U.S. managing director Will Pleasants spoke to the Sports Business Journal about how the organization has been hired to explore domestic and international exhibition races. RTA has gone on the record with the news to announce their interest in exhibition races with top drivers from the Cup Series, which could act as a tool in negotiations with the governing body.
Owner-operators in the sport, such as current driver and team owner Denny Hamlin, have been among the many who have spoken about how the sport's revenue model needs to be revised, with more emphasis being laid on the teams. With the sport's TV license set to expire in 2024, the issues need to be addressed before a new deal is set to take place in 2025.
How much revenue do NASCAR teams receive?
As per the current TV rights deal between NASCAR and broadcasters FOX and NBC Sports stand, the total revenue generated by the sport is divided with the lion's share going in favor of the tracks. The teams are primarily funded by sponsors who pay for brand advertisements on the racing outfit's cars as well as driver suits, amongst various other knick-knacks.
With 65% of the revenue being allocated to the tracks, teams are allotted 25% of the share, with the governing body claiming the remaining 10%. It is, however, notable that the majority of the tracks that the sport visits in the modern era are owned by NASCAR themselves, which does evoke a sense of suspicion.
