NASCAR goes to Charter ownership.. Reduces Sprint Cup starting field to 40 cars

I know nothing about business. Could somebody dumb down the business aspect of this? Thanks
 
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Seems Brian France is showing his liberal side,it to me seems like welfare to the big teams if you are not fast enough to qualify you should not make the show!Do they think new prospective owners will have a lot of interest knowing the deck is stacked against them?As far as the Wood Brothers they have raced full time in many years so they didn't get one.
 
I hated it years ago when top 36 in points were locked in it hurt Daytona because there were only a few spots to get guys like Andy Hillenburg and Mike and Kenny Wallace used to try to make it in but that killed most outsiders chances.It was cool how excited Hillenburg was when he transferred in that one year!
 
NASCAR says:
[BCOLOR=rgb(255, 255, 255)]The system affords Charter teams that remain in good standing more predictable revenue over the nine years of the agreement. Along with improved financial certainty, the new framework is designed to increase the long-term market value of teams and provide the ability to plan farther ahead with existing, new and prospective partners.

And-[/BCOLOR]
[BCOLOR=rgb(255, 255, 255)] Former Michael Waltrip Racing owner Rob Kauffman, who has two charters from his teams that ceased operations after last year, said he expects to sell his charters to JGR (for Edwards) and SHR (for Busch). Kauffman estimated the value of a charter at the "single-digit millions." The transfer of a charter must be approved by NASCAR, which will charge an administrative fee but not get a percentage of the sale. All NASCAR team owners will be allowed to see the transfer application, which would include the price of the charter sold. Charters can only be sold prior to the start of a season and can be transferred only once every five years.
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What it really means:
A NASCAR team will now have a value beyond the buildings, equipment, cars, etc. that are worth about 10 cents on the dollar when the team goes out of business. Now the owner can sell his charters to the highest bidder- something that they assume will increase in value season after season. NA$CAR gets to pocket an administrative fee for doing nothing. The owners wanted this. No one is going to sue.

I think it sucks that the extinct Mikey Waltrip team gets to raffle off two charters as an attendance prize for their participation. A team that started and ended in controversy, and posted very few wins, now gets a $3M windfall. The Wood Brothers raced for 65 years, won 100 races, and helped make made NASCAR a nationally recognized sport. But they didn't race full time during Brian France's randomly chosen time period so they get the priviledge of paying a ransom for one of the Charters.
 
Just one more step to Nascar becoming F1 for full bodied cars. I think this will lead to further shrinking of the fields as the sport continues to decline & one of the charters leaves without someone to replace it. They are so far gone from what brought them to great heights. I don't think it will ever be again what made it great.

Meanwhile, I'll be at the dirt tracks where there are no freebies and the racing is a whole lot better!
 
Flying Penguin said:
NASCAR says:
[BCOLOR=rgb(255, 255, 255)]The system affords Charter teams that remain in good standing more predictable revenue over the nine years of the agreement. Along with improved financial certainty, the new framework is designed to increase the long-term market value of teams and provide the ability to plan farther ahead with existing, new and prospective partners.

And-[/BCOLOR]
[BCOLOR=rgb(255, 255, 255)] Former Michael Waltrip Racing owner Rob Kauffman, who has two charters from his teams that ceased operations after last year, said he expects to sell his charters to JGR (for Edwards) and SHR (for Busch). Kauffman estimated the value of a charter at the "single-digit millions." The transfer of a charter must be approved by NASCAR, which will charge an administrative fee but not get a percentage of the sale. All NASCAR team owners will be allowed to see the transfer application, which would include the price of the charter sold. Charters can only be sold prior to the start of a season and can be transferred only once every five years.
[/BCOLOR]
What it really means:
A NASCAR team will now have a value beyond the buildings, equipment, cars, etc. that are worth about 10 cents on the dollar when the team goes out of business. Now the owner can sell his charters to the highest bidder- something that they assume will increase in value season after season. NA$CAR gets to pocket an administrative fee for doing nothing. The owners wanted this. No one is going to sue.

I think it sucks that the extinct Mikey Waltrip team gets to raffle off two charters as an attendance prize for their participation. A team that started and ended in controversy, and posted very few wins, now gets a $3M windfall. The Wood Brothers raced for 65 years, won 100 races, and helped make made NASCAR a nationally recognized sport. But they didn't race full time during Brian France's randomly chosen time period so they get the priviledge of paying a ransom for one of the Charters.
Click to expand...
Great post! One reason behind this was they thought it would make teams that folded more valuable to the bigger teams which in that case it did. But so they sell their charters and what now? Rest of the season nothing. Till next year the same deal??? and the teams like the Wood Bros get nothing for all their years of putting a car out there??? Sponsors wont like that too much and was noted the Woods Bros might loose part of theirs over this deal now. Whoever is running Nascar now seems to be the same person running our economy and the stock markets.
 
3 less teams to share the prize money with, plain and simple. Also, the 'charter' teams are guaranteed more of the purse than the other teams. What a joke.
 
[BCOLOR=rgb(255, 255, 255)]Clear as mud:[/BCOLOR]
[BCOLOR=rgb(255, 255, 255)][/BCOLOR]
[BCOLOR=rgb(255, 255, 255)]NASCAR ends posting of race winnings
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[BCOLOR=rgb(255, 255, 255)]Ending a practice of more than six decades, NASCAR has stopped disclosing winnings in Sprint Cup box scores because of its new charter system, whose financial details are emerging. NASCAR Chief Operating Officer Brent Dewar told NBC Sports the decision was made to stop disseminating total purse and individual winnings for each race because "it's not contemporary" under the new system announced Tuesday that guarantees revenue and race attendance for 36 teams with charters.[/BCOLOR]
[BCOLOR=rgb(255, 255, 255)][/BCOLOR]
[BCOLOR=rgb(255, 255, 255)]Under the new system, NASCAR has set aside guaranteed revenues for chartered teams based on entering each race and on their performance over the past three seasons. They also will compete for a points fund with more cash. The fourth and final source of income for chartered teams is what traditionally has been called "the purse," but in this case, it's dependent solely on finishing position - carved out from the previous contingency plans that rewarded the most competitive teams. The chartered and open teams compete for the same pool of money in what is known as the "variable" purse that is based on results (in addition to the "fixed" purse that offers guaranteed money in much larger amounts for the charter teams). [/BCOLOR]
 
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