In a significant overhaul, NASCAR’s new charter system has transformed the way drivers are compensated. The system promises to provide more financial security and stability for teams, but what does it mean for the prize money structure?
How NASCAR Prize Money Works
Understanding the New Charter System
NASCAR’s new charter system is a long-term agreement that overhauled the way drivers are compensated. The system created 36 ownership charters, which have regular sponsors and drivers, plus reliable race results.
How the Charter System Works
The value of each charter is based on factors such as the team’s historic significance and standing over several seasons. ‘Compensation for chartered teams includes guaranteed revenue, a points fund with cash payouts, and a share of the purse, which is doled out based on a driver’s finishing position.’ Compensation for chartered teams includes guaranteed revenue, a points fund with cash payouts, and a share of the purse, which is doled out based on a driver’s finishing position.
Divided into A, B, and C Classes
NASCAR’s system has divided the Sprint Cup field into three classes: A, B, and C. A teams are the big guys, with lots of money and experience on the track. They usually finish in the top 10 and make it into the playoffs, receiving the biggest cuts of the purse and bonuses.
NASCAR teams are classified into three main categories: Cup Series, Xfinity Series, and Gander Outdoors Truck Series.
The 'top-level series' is the Cup Series, featuring the best drivers and teams.
The 'mid-level series' is the Xfinity Series, serving as a developmental platform for Cup Series drivers.
The 'lowest level' is the Gander Outdoors Truck Series, focusing on young drivers and smaller teams.
Teams must meet specific requirements, such as ownership and sponsorship, to compete in each series.
B teams are solid mid-pack players, often getting healthy financial rewards and bonuses as well. C teams are in the bottom third, with smaller purses and bonuses or none at all under this system.
The Changing Landscape
While who actually receives the money has changed, the amounts haven’t changed much. ‘Prize pools for individual races remain huge, but not quite as big as they used to be.’ Prize pools for individual races remain huge, but not quite as big as they used to be. A recent bankruptcy filing by BK Racing provided insight into the payouts to teams at the lower end of the new system.
NASCAR Purse Money
The Evolution of Prize Money
For decades, NASCAR posted ‘the purse’ in box scores for every race on the schedule. Drivers would negotiate contracts with team owners for a salary, plus they could receive a percentage of each week’s purse.
In 2015, the last year before the charter system was in place, prize money was big. The Daytona 500, for example, had a total purse of $18 million, with winner Joey Logano taking home $1,586,503.
New Numbers and Trends
As of 2025, the total purse for the ‘Great American Race’ has ballooned up to $30 million. It’s estimated that Daytona winner William Byron will collect up to $3 million for his victory. These new numbers suggest an upward trend in prize pools thanks to renewed sponsor and fan interest in NASCAR over recent years.
The NASCAR Cup Series features a substantial prize pool, with the winner receiving a minimum of $1.36 million in 2022.
The championship purse is divided among the top drivers, with the winner taking home a significant portion.
In addition to the individual race prizes, the Monster Energy NASCAR Cup Series also offers a points-based system, where drivers earn points based on their performance.
The top drivers can earn up to $8 million in prize money over the course of the season.
Lots More Information
For more information on the charter system, its history, and how it affects drivers and teams, check out these sources:
A NASCAR charter is a guaranteed starting position for a team in a Cup Series event.
Charters are awarded to teams that rank among the top 36 in points at the end of the previous season or finish among the top 30 in owner's points after the first 26 races.
This system ensures a minimum number of competitive drivers on the track, promoting more exciting racing and fan engagement.
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‘How NASCAR’s Ownership Charter System Works’ by Autoweek
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‘Rare peek into race purses, payouts under charter system’ by NBC Sports
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‘In NASCAR, a lower finish can lead to a bigger payday’ by The Los Angeles Times
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‘Least to most: The prize money for every Sprint Cup race winner in ’15’ by Fox Sports
- howstuffworks.com | How NASCAR Prize Money Works
