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.