NASCAR’s charter system has shaped how teams compete and do business in the Cup Series since 2016. Built to give teams stability and predictable income, the model guarantees race entry and shares revenue with charter holders.
That system came under sharp focus during an antitrust lawsuit filed by 23XI Racing and Front Row Motorsports, a case that ended in a December 2025 settlement.
While the lawsuit did not remove charters, it led to changes that now define the system’s future. Here is how the charter system works, why teams challenged it, and what changed after the settlement.
How the NASCAR charter system is structured
NASCAR introduced charters in 2016 to replace the old owner-points model. Under the system, 36 charters were awarded to teams that showed long-term commitment and regular participation over the prior three seasons. A charter guarantees entry into every points-paying Cup Series race and ensures a share of race purses and other revenue.
Each Cup race allows up to 40 cars, leaving four open spots for non-chartered teams. These open teams must qualify on speed and receive less guaranteed money. Charters can be sold or leased, with NASCAR approval, and their value has increased sharply over time.
Sportico reporter Brendan Coffey noted that Spire Motorsports paid about $40 million for a charter before the 2023 season, a major jump from earlier deals that were closer to $10-$15 million.
Charter ownership is capped at four per organization. NASCAR.com explained that when the system was announced, it was designed to deliver “stability and long-term value to existing team owners” while keeping Cup Series fields full and competitive. Revenue distribution among charter teams is not equal and depends on recent performance and owner standings, a structure detailed by Motorsport.com reporter Matt Weaver.
Why teams pushed back against the system
Despite rising charter values, many teams argued the system did not cover their costs. According to Sportico, charter-related payouts are widely estimated at $8–$9 million per team each year, while the cost to operate a single Cup car can reach $10 million or more. That gap leaves teams heavily dependent on sponsorship revenue.
The dispute grew louder after NASCAR signed a new media rights deal set to begin in 2025, valued at roughly $1.1 billion per year. Teams wanted a larger share of that money. Brendan Coffey of Sportico reported that team owners believe NASCAR keeps too much of the media revenue, while NASCAR has countered that teams do not fully account for the expense of owning, operating, and maintaining racetracks.
These tensions led 23XI Racing and Front Row Motorsports to file an antitrust lawsuit in late 2024. The teams alleged that NASCAR used monopoly power to control competition, restrict teams from racing in other series, and impose unfair charter terms. During the trial, testimony included economic analysis claiming teams were underpaid by hundreds of millions of dollars under the existing structure.
What changed after the 2025 settlement
The lawsuit reached federal court in Charlotte but ended with a settlement on December 11, 2025, before jury deliberations.
Charters are now permanent and cannot be revoked. Revenue sharing increased, a significant rise from previous levels. Restrictions that limited teams from competing in other racing series were also eased.
Denny Hamlin, co-owner of 23XI Racing, said the settlement “levels the playing field without dismantling what works.”
The NASCAR charter system remains in place, but with stronger protections for teams. It continues to guarantee full fields and business stability while reflecting changes prompted by the legal challenge that reshaped NASCAR’s approach to team economics.
Like Heavy Sports’s content? Be sure to follow us.
This article was originally published on Heavy Sports
The post How the NASCAR Charter System Works After the Antitrust Settlement appeared first on Heavy Sports.