In 2016, BJ McLeod made what seemed like a modest move in a still-unfolding system; he purchased a NASCAR charter for just $1 million. Seven years later, in 2023, that same charter changed hands for $40 million when Spire Motorsports stepped in. The transaction didn’t make headlines like a championship or a Daytona crash, but inside the industry, it was louder than any engine. A once-questioned system had quietly matured into a high-stakes market, and that sale marked the first visible sign of a full-blown charter boom.
Now, the speculation is getting louder. Rick Ware Racing is reportedly tangled in a charter dispute rumored to be worth $100 million. While NASCAR hasn’t confirmed the numbers, industry chatter suggests it may only be a matter of time before a charter officially reaches that benchmark. With outside money pouring in, and just 36 of these charter slots in circulation, the once-overlooked paperwork is now treated like rare property, scarce, high-value, and the foundation of a long-term financial play in the Cup Series.
Steve Phelps makes bold claims amid NASCAR’s charter drama
In the middle of all this rising noise, NASCAR Commissioner Steve Phelps isn’t surprised by the market’s trajectory; he believes it’s a direct result of how NASCAR has shifted its financial model. Phelps believes charters are now a recurring-revenue asset, with increasing value driven by guaranteed TV exposure and a locked-in presence on the grid.
Speaking about the charter extensions that were completed in 2023, Phelps explained in an interview on Puck why outside investors are confident that the value of charters will continue to climb. “For starters, we had charter extensions last year. The amount of money that NASCAR provided as part of these extensions really went up significantly. Every dollar that we got incremental to our new media deals went to our race teams, every single dollar, plus money that came out of NASCAR’s pockets and the tracks’ pockets to give to the race teams,” Phelps said. “We did that to try to make sure that there was a balance so that race teams would be profitable. Profitable race teams put on better racing.”
What that means is simple: NASCAR isn’t just paying lip service to team sustainability. By funneling new media revenue directly to race teams and pulling extra from its own and the tracks’ margins, NASCAR is ensuring that the teams holding charters see tangible financial returns. That has transformed each charter into something more than a pit road entry pass.
Charters were originally introduced to bring financial stability to the garage. In today’s market, they’ve become something closer to a sports franchise license—limited in number, rich in upside. NASCAR has announced no plans to add to the existing 36, except for when they tried to own one and field a race team, and that scarcity is part of what’s making private equity firms take notice. These charters aren’t just valuable because of racing, they’re valuable because they’re exclusive, cash-generating assets in a media-driven ecosystem.
“They’re providing three things to the race teams,” Steve Phelps said, describing private equity’s growing role. “They’re providing expertise that the race teams don’t have. A lot of these private equity folks that are coming into NASCAR own part of NFL, NBA, NHL, or Major League Soccer franchises, and they’re bringing different ideas to those race teams. They’re also providing capital, which is a good thing for the owner of these particular charters. In many cases, they’re bringing sponsorship.”
The mix of capital, management insight, and marketing muscle is reshaping what it means to own a NASCAR team. What used to be a world built on race-day performance and shop-floor hustle is evolving into a new model, one where financial strategy and corporate partnerships are just as crucial as horsepower and pit stops. As Phelps puts it, “If we are gonna continue to grow, and I believe we will, it’s by thinking differently.”
The charter system has definitely drummed up a lot of noise surrounding the financial equity of the sport since its introduction, but Phelps believes it is going in the right direction. However, if charter prices keep rising, how is NASCAR going to stop people who see NASCAR as merely a financial investment and not a racing series?
A system built on scarcity, running without a regulator
Private equity firms, or PE for short, are large investment groups that put money into businesses to help them grow and make a profit in return. These aren’t your typical race fans with wrenches in hand. They’re Wall Street types who own pieces of NFL teams, MLS clubs, and even European soccer giants. When they look at a NASCAR charter, they don’t just see a way onto the starting grid. They see a limited-edition asset that guarantees payouts, visibility, and potential resale value. That’s why the prices are exploding. The return is clearer than ever, and the supply is locked at 36.
But there’s no real rulebook controlling how this works. NASCAR doesn’t cap how much a charter can sell for. And since this is not a franchise system, no board approves new owners, unlike leagues like the NBA or NFL, where franchise sales go through a thorough review. The Cup Series is still running without those guardrails. The danger is that this wide-open market invites buyers who care more about flipping charters than building competitive teams. If enough of them come in, the sport could shift away from its roots. Family-owned teams might get priced out. Racing culture could start looking a lot more like stock trading.
All of these put NASCAR at a crossroads. On one side, private money is helping teams survive, upgrade, and grow. On the other hand, the system that supports them is fragile. It was built to protect teams, not to be auctioned off. Phelps believes this is a new era. But how long the system can hold up without rules, that’s the real race to watch. What are your thoughts on the charter system? Let us know in the comments!
The post As Billionaires Swarm NASCAR, Steve Phelps Clears the Air on Charter’s ‘Gold Rush’ Era appeared first on EssentiallySports.