Several NASCAR team investors and industry executives feel charter values have gone up overnight with the establishment of evergreen provisions, with some predicting a near doubling of value right away. This season, Legacy Motor Club paid Rick Ware Racing $45M for a charter, one of the 36 that make up the system established in 2016, and that system was at the heart of the $365M antitrust trial that was settled Thursday when NASCAR promised teams evergreen provisions that will allow them to keep charters permanently as long as they continually meet certain requirements. Teams also will get added assurances or new guarantees on international media revenue, governance and future revenue opportunities in exchange for paying NASCAR a higher fee on charter transactions, according to multiple reports.
Nearly all of the industry executives with ties to teams contacted yesterday by SBJ felt the asking price for charters will now rise, with some being more bearish in predicting they will now at least top $50M in the next valuation. Those who were more bullish put the number closer to $90M-$100M. Teams still don’t own any equity in NASCAR, so the charters remain fundamentally different than stick-and-ball franchises. In evidence that the two plaintiff teams obtained from NASCAR via discovery, NASCAR SVP and Chief Strategy Officer Scott Prime appeared to predict that charters would hit around $100M in value if they were made permanent.
Former Richard Petty Motorsports owner Andrew Murstein, whose experience in the N.Y. cab industry nearly led to the charter system being called a medallion system as referenced during the trial, told SBJ via text message: “As I had been saying for years and always believed when I owned Richard Petty Motorsports, this outcome was inevitable and a no-brainer to be honest. A rising tide lifts all boats. This settlement is a clear example of that philosophy. By establishing a permanent charter system, much like the old taxi medallion system, NASCAR is ensuring long-term value for everyone involved. It’s truly a win-win scenario.” Murstein also said NASCAR team owners are “gaining that same kind of stability” as sports franchises. “And when franchise values rise, which they naturally will because of this permanence, it benefits not just the teams but NASCAR itself,” he added.