NASCAR teams have hired antitrust attorney Jeffrey Kessler to offer guidance as they navigate the ongoing negotiations for a new revenue sharing model. The hiring of Kessler was reported by The Associated Press on Sunday evening, following a meeting among NASCAR team owners earlier in the day. The meeting took place after the 66th Daytona 500 was rescheduled for Monday afternoon. Kessler, a partner and co-executive chair at Winston & Strawn LLP, has previously represented the U.S. Women’s National soccer team in their pursuit of equal pay.
Discussions between NASCAR and team owners, led by the negotiating committee, have been ongoing since last year regarding a new charter agreement. The current agreement is set to expire at the end of this season. One of the main concerns for the teams is securing a more favorable financial arrangement, particularly in relation to media rights. Curtis Polk, an investor in 23XI Racing, emphasized the need for aligning interests to foster growth within the sport. He stressed the importance of creating a revenue-sharing structure that benefits drivers, teams, tracks, and NASCAR as a whole.
Prominent team executives, including Jeff Gordon, vice chairman of Hendrick Motorsports, and Steve Newman, president of RFK Racing, have expressed their concerns about the sustainability of teams under the current business model. Gordon admitted that Hendrick Motorsports has not made a profit in the past decade. In December, NASCAR announced a media rights deal for 2025 worth over $7 billion. The deal involves four broadcast partners, with Fox Sports and NBC Sports remaining in the fold and the addition of Amazon Prime Video and TNT Sports.
Notably, NASCAR was not present at the meeting held on Sunday. However, NASCAR president Steve Phelps expressed confidence in reaching a fair agreement during an interview with SiriusXM NASCAR Radio on Daytona 500 media day. Phelps emphasized the intention to provide race teams with a path towards profitability and an opportunity to increase the value of their charters. He acknowledged the significant increase in the enterprise value of charters in recent years, with the alleged sale of the last charter reaching $40 million. Phelps assured that discussions with race teams would continue in the coming days, expressing eagerness to finalize the agreement for the benefit of all parties involved.
According to the Source racer.com
