IndyCar Adopts NASCAR-like Charter System for Teams
In a move that mostly mirrors the NASCAR Cup Series charter system that began in 2016, IndyCar announced today that it is granting charters for 10 of its full-time teams that will guarantee a starting position in every race, except the Indianapolis 500.
The total number of charters granted totals 25, and fields will be capped at 27 cars for the non-Indy 500 events, with two non-charter spots apparently going to a new team, PREMA, an Italian effort that has asked to enter a pair of Chevrolet-powered cars.
These are the teams granted charters by the Penske-owned IndyCar series, with the number of charters in parenthesis: A.J. Foyt Racing (2), Andretti Global (3), Arrow McLaren (3), Chip Ganassi Racing (3), Dale Coyne Racing (2), Ed Carpenter Racing (2), Juncos Hollinger Racing (2), Meyer Shank Racing (2), Rahal Letterman Lanigan Racing (3) and Team Penske (3).
So why charters? Because, as in NASCAR, it gives teams tangible, re-sellable value, and a long-term future. In NASCAR, charters have been sold on the open market, with the current value being about $30 million each, now that the charter system has matured. Since one charter equals one car that will have a spot in every race, teams can more effectively market to sponsors, who will essentially be guaranteed some camera time on the TV broadcast, plus additional publicity opportunities to host hospitality gatherings for customers and employees.
Said IndyCar: “This is the first charter system to be introduced in the history of the NTT IndyCar Series. A chartered entry is guaranteed a starting position on the grid at all IndyCar races, excluding the Indianapolis 500 Presented by Gainbridge. An entry also must be chartered to qualify for the annual Leaders Circle program—an award program that compensates the 22 top finishers in the prior year’s series championship. The terms of the initial, long-term charter agreements are committed through the end of 2031.”
Most team owners seem pleased with the move. “The charter agreement, to me, is the single most important piece for the future of the series. I’m grateful that we all came together on this and thank the Roger Penske group for working with the team owners for getting it done,” said Michael Shank of Meyer Shank Racing, which gets two charters.
Said Chip Ganassi, of Chip Ganassi Racing, which is trimming its car count to three: “When you look back in the modern era of IndyCar racing, you will look at a few important moments, the first being the unification of the sport, the next being Roger Penske buying the Series and the Indianapolis Motor Speedway, and I truly believe the third will be the charter system.”
With the IndyCar 2024 season over, the new system will begin at the 2025 season-opening Grand Prix of St. Petersburg on March 2.
Why restrict entries to a competitive series? If someone can add more competition they should be allowed in. If they can’t, they won’t last long. It’s like F1 which used to have fields of 25-over 30 at some races as recently as the 70’s and early 80’s. Now only a select group can be “in”. Money grab?
That is working so well there and F1. The small teams are excluded and even big teams they fear. Just aAs Andretti.
It is like communism in racing.m
“Communism” is close, but no [Cuban] cigar. Certain snide remarks by Ecclestone come immediately to mind.
Will IndyCar end up absorbed by NASCAR in the future? The France family has saved IMSA, but even RP has to play in the NASCAR sand boxes.
I’m interested to see how this all plays out
I’m curious to see if this helps Indycar to grow as a sport. Only time will tell.
I think Bernie will be remembered, and maybe like to be remembered, as F-1s dictator. He’d send the cars out in the rain even when most drivers were opposed to it and things of like sort. How many fines did he hand out for ‘conduct unbecoming to the sport ‘ when someone said something harmless but he didn’t like. But being fair he could be the benevolent dictator at times as well. I’m sure Penske looked carefully at the pros and cons of the charter system. Nascar has used it long enough and he’s been in Nascar long enough. At this point in his life it seems more than unlikely he’s motivated by just greed and more than likely that he’s genuinely concerned at what is best for IndyCar while he’s at the helm. His legacy. Without the real inside information on costs, cost projections etc. etc. etc. we’re just coaching from the cheap seats. But to speculate I can’t imagine going to the charter system will somehow be the death of IndyCar nor grow the sport. It seems more like a measure taken to help insure its survival.