NASCAR's 2025 charter agreement goes public for the first time amid legal fight with 23XI and FRM
NASCAR's 2025 charter agreement goes public for the first time amid legal fight with 23XI and FRM
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NASCAR's 2025 charter agreement goes public for the first time amid legal fight with 23XI and FRM

Anurup Chakraborty 🕒︎ 2025-10-30

Copyright sportskeeda

NASCAR's 2025 charter agreement goes public for the first time amid legal fight with 23XI and FRM

The 2025 NASCAR Cup Series charter agreement has been made public for the first time, offering an unprecedented look at the sport’s financial structure as its antitrust battle with 23XI Racing and Front Row Motorsports continues.The newly revealed documents, filed in federal court, outline the full payout breakdown for the next seven years, including base payments, performance bonuses, and end-of-season funds, which govern how money flows between NASCAR and its chartered teams from 2025 to 2031.According to the documents, each of the 36 chartered entries will receive a base payout of $141,000 per race, totaling roughly $182 million across 2025. The overall payout pool for the year is set at $431.37 million, divided among four key categories: race purses, the Fixed Owner’s Plan, the Performance Plan, and the Year-End Point Fund.Fox Sports’ Bob Pockrass shared the details on X, writing:“The 2025 charter agreement is now a public record. Charter teams get a base $141,000 per event.”Attached to the post were four NASCAR Charter exhibits: the race purse payouts curve, Fixed Owners Plan chart, Year-End Points Fund structure, and Performance Plan methodology.The Year-End Point Fund alone totals $33.7 million for 2025, from $2.84 million for the championship team to $48,000 for 36th place. The funds are distributed within 30 days after the season finale, while race and fixed-plan payments are processed within five business days of each event. Those details highlighted the precise system Cup Series teams have long described as restrictive.Steve Phelps and 2024 Cup Series champion, Joey Logano, before the 2025 HOF voting. Source: GettyMeanwhile, the Fixed Owner’s Plan, responsible for the per-event $141,000 payout, represents the most stable portion of the agreement, offering predictable weekly income to all 36 chartered entries. Payments under that plan, as well as event purses, are issued within five business days after each race, according to Exhibit B of the document.The disclosure arrives at a critical moment in NASCAR’s ongoing legal standoff with 23XI Racing and Front Row Motorsports. After two failed settlement rounds and months of procedural hearings, the case remains headed for trial on December 1, 2025, with both sides awaiting rulings on key motions that could determine the future of the charter system.Inside NASCAR’s payout structure: How the 2025 Performance Plan rewards top teamsNASCAR Cup Series Xfinity 500 at Martinsville Speedway. Source: GettyBeyond base payouts, the Performance Plan introduces a share-based structure designed to reward consistently strong teams. The plan uses a rolling two-year average of Owner Points, weighted 100% for the current season and 50% for the previous year. The highest-ranked team earns 36 shares, while the lowest-ranked charter receives one share.Each team’s percentage of the Performance Plan pool is determined by its share count divided by the total available shares. It means that sustained performance directly translates into a larger slice of the financial pie. In case of a tie, shares are evenly split among the tied teams.The Performance Plan is one of NASCAR’s methods of incentivizing competitiveness while balancing guaranteed income. However, critics argue that it further widens the gap between powerhouse operations and smaller teams already struggling to cover costs under the current distribution model. All eight drivers in the Round of 8 playoffs were from the 'big three' - Hendrick Motorsports, Team Penske, and Joe Gibbs Racing.The release of the charter agreement marks a pivotal point in the sport’s transparency, following a year defined by courtroom battles and growing tension between NASCAR and its teams. As the Cup Series heads into its Phoenix finale this weekend, NASCAR prepares to defend its current system in court once again.

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