NASCAR announced Friday morning that the sanctioning body and NASCAR Cup Series team owners have signed an extension of the Charter agreement.
“The Charter agreement is delivering stability and long-term value to existing team owners while providing a clear path for ownership in the NASCAR Cup Series,” said NASCAR President Steve Phelps. “We are pleased to have reached an agreement with the team owners that extends the length of the Charter system until 2024. A healthy ownership structure ensures strong, competitive racing for our fans, which is a goal the industry collectively shares.”
Introduced in 2016, the Charter agreement had an initial five-year term (’16-’20) with a four-year renewal to extend the agreement for the 2021-’24 seasons.
Under the Charter agreement, there are 36 Charter teams who are guaranteed a starting spot in each NASCAR Cup Series race. Charters were initially awarded to organizations that had showed a long-term commitment to the sport for the previous three years.
Charters can be transferred, or leased, to another team, but only for one season at a time. They can also be sold.
If a Charter team finishes in the bottom three of the owner standings for three consecutive years, NASCAR reserves the right to take back the Charter.
Earlier this week, the Race Team Alliance sent out a statement announcing it endorsed an extension of the Charter agreement.
“After extensive consultation among the teams, NASCAR and other stakeholders, there is now a collaborative roadmap for development for the Next Gen car, schedules, and new areas of growth including eSports and gaming,” said RTA Chairman Rob Kauffman. “The extension will continue the positive trends currently underway and advance the RTA’s goal to promote and grow the sport of stock car racing.”