Racers, Start Your Valuations
The 2024 NASCAR season has entered an interesting phase involving valuation and identity assessment. The sale announcement of Stewart-Haas Racing (SHR) wasn't a shock, with Gene Haas focused on Formula One and Tony Stewart unhappy as a NASCAR owner.
Stewart-Haas Racing: A Charter Member's Departure
SHR, a charter member of NASCAR since 2016, owns four full-time car charters and has been shopping them around. Furniture Row Racing sold their charter for $6 million in 2018, while 23XI Racing bought StarCom Racing's charter for $21 million in 2021. Recently, Spire Motorsports purchased one for around $40 million. SHR's charters are expected to be sold below $40 million to existing or expanding teams, with Front Row and Trackhouse showing interest.
Television Revenue and Upcoming Negotiations
NASCAR's new seven-year TV deal worth $7.7 billion was announced in November 2023, with teams currently getting 25% of the revenue. The current charter agreement expires on January 1, 2025, and negotiations are ongoing for a larger share of TV revenue for teams. Speculation exists around NASCAR's potential sale if agreements aren't reached.
Leadership and Policy Concerns
The France family still leads NASCAR, with divided opinions on Jim France's tenure and policy-making approach. The deadline for new charter agreements is December 31, with NASCAR COO Steve O'Donnell stating they are "very close."
Voices from the Industry
The unfolding drama around the valuation of NASCAR charters has elicited various opinions from within the industry:
"Charter truth is going to be out there now. Feelings are going to get hurt. Because no one actually wants to hear what they’re really worth. Unless you’re Jeff Bezos, it’s never as much as you think."
"Imagine if the owners of the Kansas City Chiefs or the Charlotte Hornets had to renegotiate with the NFL or the NBA every seven years. That’s crazy, right?”
"We can only support you as long as we are being supported. Be careful what you wish for, because this is Bill Junior’s brother, after all."
"None of us were happy with Brian in charge, and we used to say, what would it be like if Jim stepped in?”
Conclusion: The Future of NASCAR
The charter system was designed to help racers financially. As negotiations continue, the NASCAR community awaits the outcome with bated breath. The success of these talks will undeniably shape the future landscape of NASCAR, affecting not only the owners and teams but also the fans who are deeply invested in the sport.
In summary, the NASCAR community is undergoing a pivotal moment. The departure of Stewart-Haas Racing, coupled with the potential sale of charters and ongoing television revenue negotiations, creates a complex and evolving situation. The sport's leadership faces significant challenges but also opportunities to ensure the financial stability and growth of NASCAR for years to come.