{"id":100071,"date":"2024-01-27T11:23:28","date_gmt":"2024-01-27T16:23:28","guid":{"rendered":"http:\/\/www.owegopennysaver.com\/PS\/?p=100071"},"modified":"2024-01-27T11:23:28","modified_gmt":"2024-01-27T16:23:28","slug":"collector-car-corner-greg-zylas-racing-briefcase","status":"publish","type":"post","link":"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/","title":{"rendered":"Collector Car Corner \/ Greg Zyla\u2019s Racing Briefcase"},"content":{"rendered":"

By Greg Zyla —<\/p>\n

NASCAR: Big money, big concerns, big decisions<\/p>\n

— New $7.7-billion TV deal, charters and sponsor deals headline 2024 —<\/p>\n

I\u2019ve received several letters from readers as to what\u2019s up for 2024 when it comes to NASCAR. I\u2019ll leave the latest driver and team announcement news to those who devour the NASCAR YouTube videos and printed word, and instead share some of the off-track business news that many times is just as exciting as the actual races.<\/p>\n

First, Sponsorship or lack thereof: I\u2019ve read many articles discussing NASCAR major sponsorship continually losing Fortune 500 backing. I can quickly recall some of the major sponsors that have left NASCAR in the past 20 years including Kellogg\u2019s, Caterpillar, Subway, Dollar General, Farmers, GoDaddy, Home Depot, Lowe\u2019s, M&M Mars, and UPS. I could keep going but you get the idea.<\/p>\n

The late, legendary \u201cDean of Motorsports Journalism\u201d Chris Economaki told me back in the 1990s his concern about Cup racing and sponsors, noting that NASCAR Cup teams were turning into what he termed \u201cracing charity cases\u201d and were becoming completely reliant on sponsor money infusions to keep going. Further, today\u2019s top tier, season long major sponsor deals cost in the $25-million range, proving that Economaki\u2019s fears have materialized. Unfortunately, there just aren\u2019t many season long, major money clients left.<\/p>\n

Here in 2024, Cup is a rich person\u2019s sport for either the economic elite or those successful \u201ccharity case\u201d owners that Economaki feared would multiply. The teams are barely surviving, but too many of the bigger teams are finding their marketing squads spending more and more time seeking sponsor support, be it a one race or multi-race package.<\/p>\n

Look for this type of \u201cnon full season\u201d race car sponsorship to continue, and it\u2019s a life saver for all the teams involved.<\/p>\n

Second, the Charter\/Franchise Mystery: At the end of 2024, NASCAR must address the \u2018who really owns that charter \/ franchise\u201d issue that has the team owners genuinely concerned for rightful reasons.<\/p>\n

The conundrum? The team owners do not really own these charters, NASCAR does. Yes, that\u2019s correct, even though these charters, which offer a guaranteed starting spot in every Cup race on the schedule, are allowed to be sold by teams for rumored $25- to $40-million and up.<\/p>\n

When NASCAR established the 36 charter \/ franchise system in 2016, I was happy for the team owners that previously had nothing left when they decided to quit Cup racing. This was all good in my opinion, as I was one of the first writers with PRI magazine in the late 1980s and then my columns in National Speed Sport News pushing for a franchise system. These NASCAR charters (many still call them franchises) would protect the owners and escalate NASCAR to the likes of the NFL, MLB and NBA. If you owned a NASCAR franchise, all would be good.<\/p>\n

Well, it didn\u2019t necessarily turn out that way, and herein is the problem. NASCAR owns the charters, not the team owner. The negative of this situation finds NASCAR being more a \u201cguardian\u201d in that you either operate successfully like a franchise owner should, or you don\u2019t and are shut out of the game based on inferior performance. Further, the only chance non-charter teams have to enter a Cup race lies in the four open positions of the still 40-car approved starting field. (Used to be 43). These non-franchise teams can try and make the race, but they are out there on their own and won\u2019t share monies like the 36 charter teams do.<\/p>\n

There are also other charter rules that allow team owners to sell, buy, and even lease a charter, but if you lease the charter, it must be returned to the lender at year\u2019s end. Also, four-car maximum charter ownership is still the norm. <\/p>\n

Third, the Mega 2025 TV Deal: NASCAR recently announced a new, mammoth money, TV\/Media Rights arrangement that will reshape the live broadcasting agreements from 2025 through 2031. This innovative seven-year deal consists of four major broadcast partners, including Fox, NBC, and new associates Amazon Prime and Warner Brothers Discovery, known as TNT Sports.<\/p>\n

Existing longtime allies Fox and NBC will bookend the Cup season splitting the rights to 14 events each. This means the Fox \/ NBC associates lose 10 of the mid-season races to the new partners and new direction.<\/p>\n

\"Collector<\/a>

GEICO insurance was a NASCAR \u201cpremier partner sponsor\u201d for the entire Cup series in 2020. The company also was a major sponsor of the Richard Childress No. 13, driven by his grandson Ty Dillon that year. He is shown in action at Watkins Glen. (Greg Zyla Photo)<\/p><\/div>\n

Enter the world of streaming and DTC (direct to consumer) marketing to NASCAR racing. Prime Video and TNT Sports will each split the 10 midseason races, with five to Prime and five to TNT. These exclusive rights include qualifying and practice for the season, excluding the Daytona 500, Busch Lite Clash and All-Star event.<\/p>\n

Prime already experiences success with its Thursday Night Football, and regardless of viewer pushback, hopes are similar the NASCAR agreement will likewise prove worthy following some initial pushback from all the demographic age groups. For simplicity\u2019s sake, if you want to watch Prime\u2019s five Cup races in 2025, you must be a Prime Video subscriber, which is automatic if you are an Amazon Prime member. (Yes, I am.)<\/p>\n

The TNT deal will simulcast races on TNT (which to me means FREE if you have the TNT channel) while also streaming on the B\/R Sports Add-On of the Max channel. <\/p>\n

Overall, this new media rights package is worth a whopping $7.7 billion, which equates to a 40-percent increase compared to its current deal that runs out at the end of this year. That\u2019s $1.1 billion per year to divide up, and something that continues causing distress with the racing teams.<\/p>\n

So, what\u2019s the problem?<\/p>\n

On the cusp of this gigantic media money announcement, all of the current Cup teams are unhappy with how the TV monies are split, and make it known they are looking for a better incentive deal for 2025. Many feel the revenue sharing program is faulty at best and will not allow for future growth under continually higher operating cost realities. (Yep, called inflation.)<\/p>\n

Currently, the monies split goes like this: 60% to the track, 30% to the teams, and 10% to NASCAR. Most Cup fans are aware that NASCAR owns many of the tracks where Cup teams\u2019 race, with the late Bruton Smith\u2019s company Speedway Motorsports owning eight tracks. Pocono, Indianapolis, and many of the road \/ street courses are independent. <\/p>\n

Consequently, NASCAR is now facing some serious decision making. If NASCAR owns most of the tracks, this means they walk away with 70% of the media money, while the Cup teams are stuck at the current 30%. When you take into consideration it costs nearly $15 million on average to own and operate a top Cup team, which includes everything from employee salaries, racecars, real estate, over the road expenses, employee benefits, healthcare, 401K, utilities and so on, a more reasonable split of the TV money becomes paramount to a team\u2019s current and future success.<\/p>\n

As for the charter \/ franchises, teams are so upset that NASCAR still officially \u201cowns\u201d these charters that many teams allegedly did not show up for a recent meeting to discuss the situation according to sources. Under the current charter rule, a charter can be pulled if a team underperforms for three years in a row, resulting in a killer blow to a team by effectively putting them out of business.<\/p>\n

Could the most recent sale of B.J. McLeod\u2019s Live Fast Racing team charter to Spire Motorsports for a rumored $40 million have happened had there not been a performance clause in the NASCAR charter commandments? Let\u2019s face it, McLeod\u2019s team did poorly enough the last three years to perhaps have become the very first team to lose a NASCAR charter\/franchise. Would NASCAR have done so? It doesn\u2019t matter now but proves that with the \u201close your charter\u201d ability, NASCAR clearly owns these charters. <\/p>\n

Now imagine the NFL telling the New York Jets or Las Vegas Raiders they are out of the NFL because they had three losing seasons in a row. To be fair, I understand some of NASCAR\u2019s reasoning to owning and controlling the charters, with the \u201cstart and park days\u201d a prime example. However, control like this hurts the charter \/ franchise effort in my opinion.    <\/span><\/p>\n

Summary: It’s going to be a remarkably interesting 2024 for sure. NASCAR will decide about the charter \u201crenewals\u201d even though most charter teams are already operating like they own them anyway. Still, team owner anxieties exist, and, again in my opinion, NASCAR must give up the charter ownership 100% to the team, period. <\/p>\n

Additionally, that old \u201cbut NASCAR only receives 10% of the TV monies\u201d gets old when one again considers NASCAR owns the majority of Cup hosted tracks, which equates to a reoccurring 70% take home pay exercise in my book.<\/p>\n

Finally, and perhaps most important, a better \u201canxiety reducer,\u201d ala a minimum 35% to even 40% TV deal instead of 30% for 2025 would be most welcome.<\/p>\n

Then, we\u2019ll see how things go from there.<\/p>\n

(Greg Zyla is a syndicated auto columnist who welcomes reader interaction on collector cars, auto nostalgia and motorsports at greg@gregzyla.com<\/a> or at extramile_2000@yahoo.com<\/a>.)<\/p>\n","protected":false},"excerpt":{"rendered":"

By Greg Zyla — NASCAR: Big money, big concerns, big decisions — New $7.7-billion TV deal, charters and sponsor deals headline 2024 — I\u2019ve received…<\/p>\n","protected":false},"author":5,"featured_media":100073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-100071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial"],"yoast_head":"\nCollector Car Corner \/ Greg Zyla\u2019s Racing Briefcase - Owego Pennysaver Press<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Collector Car Corner \/ Greg Zyla\u2019s Racing Briefcase - Owego Pennysaver Press\" \/>\n<meta property=\"og:description\" content=\"By Greg Zyla — NASCAR: Big money, big concerns, big decisions — New $7.7-billion TV deal, charters and sponsor deals headline 2024 — I\u2019ve received...\" \/>\n<meta property=\"og:url\" content=\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/\" \/>\n<meta property=\"og:site_name\" content=\"Owego Pennysaver Press\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/The-Owego-Pennysaver-49179420591\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-27T16:23:28+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.greenstreetdata.com\/PS\/owego\/files\/2024\/01\/Car_Collector2-3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"301\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"psadvert\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"psadvert\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/\",\"url\":\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/\",\"name\":\"Collector Car Corner \/ Greg Zyla\u2019s Racing Briefcase - Owego Pennysaver Press\",\"isPartOf\":{\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/#website\"},\"primaryImageOfPage\":{\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/#primaryimage\"},\"image\":{\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.greenstreetdata.com\/PS\/owego\/files\/2024\/01\/Car_Collector2-3.jpg\",\"datePublished\":\"2024-01-27T16:23:28+00:00\",\"author\":{\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/#\/schema\/person\/e03684194434956dfb61f5ffcbc19492\"},\"breadcrumb\":{\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"http:\/\/www.owegopennysaver.com\/PS\/2024\/01\/27\/collector-car-corner-greg-zylas-racing-briefcase\/#primaryimage\",\"url\":\"http:\/\/www.greenstreetdata.com\/PS\/owego\/files\/2024\/01\/Car_Collector2-3.jpg\",\"contentUrl\":\"http:\/\/www.greenstreetdata.com\/PS\/owego\/files\/2024\/01\/Car_Collector2-3.jpg\",\"width\":500,\"height\":301,\"caption\":\"ops Supermarkets, with heavy exposure in New York and Pennsylvania, use NASCAR for strategic and geographical advantageous marketing. 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