NASCAR isn’t exactly known for its silence with its Cup Series cars running upwards of 750 horsepower out of rather meaty V8 engines. However, one thing that is kept silent is the financial earnings of its racers. Unlike sports like tennis or even F1 to a certain extent, where earnings are either transparent or heavily hinted of, NASCAR maintains its secrecy around its drivers’ earnings. This lack of transparency raises the quesion of… why?
Historically, NASCAR disclosed detailed information about race winnings, giving fans the ability to track individual earnings. For instance, in 2015, fans knew that Joey Logano earned $1,586,503 for winning the Daytona 500. This open approach changed in 2016 with the introduction of the charter system. NASCAR stopped sharing individual financial data, altering the perception and understanding of the sport’s economic landscape.
Jeff Gluck from The Athletic has addressed this topic on “The Teardown” podcast, highlighting how the important financial aspects of the sport are often overlooked.
“I think it started with NASCAR not wanting — they said, ‘Oh, fans don’t care about the money part of this,'” Gluck noted. “I think fans definitely do.”
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The charter system, which was introduced to bring stability to the NASCAR team ecosystem, guarantees revenue for 36 chartered teams. This system makes revenue less straightforward, with earnings coming from multiple sources or “buckets” that complicate clear disclosure. These include base salaries, percentages of race winnings, performance bonuses, and merchandise sales. Consequently, the charter system places greater financial emphasis on teams rather than individual racers, leading to the concealment of detailed payout information.
Gluck said: “It’s not as straightforward as OK, you finished 13th in this race so you get x amount of dollars. There’s so much more that goes into it now.”
While these changes were initially justified by declining attendance figures, as Gluck mentioned, NASCAR has since resumed disclosing total race purses, such as the Daytona 500’s $28,035,991 in the past season. Yet, clarity on individual driver earnings remains under wraps, with only internal documentation available to teams for financial management purposes. This selective transparency leaves fans guessing.
Michael McDowell, the 2021 Daytona 500 winner, admitted the impact of prominent race victories on team finances.
“It’s the biggest race of the year for us and for the team from a payout standpoint. It does matter, especially for a team like us at Front Row Motorsports. Winning the race and making the playoffs, financially what that does for you, it sets up the next few years,” McDowell explained.
NASCAR’s decision to mute financial discussions stems from the complex nature of its income structure. While some insiders, including Brian Vickers and Joey Logano, suggest that secrecy helps prevent unrealistic comparisons and jealousy, it also deprives fans of understanding the economic realities faced by drivers. Top-tier drivers benefit significantly from endorsements and sponsorships, but those towards the bottom of the grid may struggle.
