NASCAR unveils charter system for Sprint Cup Series team owners

Revamping its longstanding policies, NASCAR unveiled a charter system Tuesday that provides team owners greater financial security and a larger voice in decisions.

The charters, which are comparable to franchises found in the NBA, NFL and the like, give 36 teams, which have all run full-time since 2013, guaranteed starting positions in all 36 Sprint Cup Series points races. Race field size will decrease from 43 spots to 40, with four positions open to teams not holding charters via time trials.

The agreement between NASCAR and its owners is for five years with a four-year option. For a team to maintain its charter it must be in "good standing" performance-wise and enter every Cup race.

An owner can divest their charter by selling it to an outside party, and in theory, recoup some of their investment. Under the old system, where participants were viewed as independent contractors, an owner was often forced to sell their assets for pennies-on-the-dollar when they choose to leave the sport. NASCAR must approve all sales.

Rob Kauffman, the co-owner of Chip Ganassi Racing and the president of the Race Team Alliance, said the current value of a charter is estimated in the low "seven figures."

NASCAR CEO and chairman Brian France trumpeted the system as a way to "promote a more predictable, sustainable and valuable team business model" that will increase competitiveness on the track. Team owner Richard Petty called it the "second biggest thing that has happened to NASCAR" and said both sides, ownership and the sanctioning body, met in the middle to negotiate the pact.

The 36 charter teams are: Hendrick Motorsports (4 cars); Joe Gibbs Racing (3); Stewart-Haas Racing (3); Roush Fenway Racing (3); Richard Childress Racing (3); Team Penske (2); Michael Waltrip Racing (2); Front Row Motorsports (2); Richard Petty Motorsports (2); Chip Ganassi Racing (2); BK Racing (2); Furniture Row Racing (1); Germain Racing (1); Premium Motorsports (1); Tommy Baldwin Racing (1); HScott Motorsports (1); Circle Sport Racing (1);  JTG Daugherty Racing (1); and Go Fas Racing (1).

Because MWR, co-owned by Kauffman and Michael Waltrip, has since folded following the conclusion of the 2015 season, Kauffman is free to sell the team's available charters. Presumably, SHR and JGR, which are four-car teams but with only three charters apiece, are the likeliest candidates to purchase MWR's two charters thereby solidifying drivers Kurt Busch (SHR) and Carl Edwards (JGR) place in the starting lineup.

The charter system goes into effect immediately. The Sprint Cup season begins with the Daytona 500 Feb. 21 at Daytona International Speedway.

Additionally, a council comprising the car owners will be created allowing formal input into policies and rules, though NASCAR remains the decisive decision-maker.

"This is an important day in the history of our sport that will benefit all constituents, immediately and in the long term," said Gene Haas, SHR co-owner. "As someone who has heavily invested in motorsports for many years, I'm very pleased with the industry's commitment to sustainability, collaboration and long-term value."