The organization is co-owned by NASCAR HOFer Tony Stewart and businessman Gene Haas, who also owns an eponymous F1 teamGetty Images
Stewart-Haas Racing’s future has become one of the most watched topics in NASCAR, with sponsorship departures and on-track struggles raising questions about whether it could downsize its four-car Cup Series operation as soon as next year. The organization is co-owned by NASCAR HOFer Tony Stewart and the businessman Gene Haas, the latter of whom also fully owns an eponymous F1 team. Haas is seen as the far wealthier of the duo, though the exact equity breakdown between the two is unclear.
SHR has won championships in multiple NASCAR series dating back to its founding in 2008, and it’s largely been looked at as one of NASCAR’s premier outfits during that time. That includes Kevin Harvick’s 2014 Cup Series championship. But last year, the team lost what was likely low eight figures in annual sponsorship revenue with departures by major blue-chip brands Anheuser-Busch and Smithfield Foods, along with the departure of the smaller but still notable brand Hunt Brothers Pizza.
Compounding matters was that three of the team's four cars missed the playoffs in 2023, and its foremost star, Harvick, retired after the season. Moreover, the team’s big-money deal with Ford expires after this year, which could lead to another dramatic reduction in revenue for the team. Teams rely on sponsorship for about 60-80% of their annual revenue, meaning departures have a more dramatic impact in NASCAR than stick-and-ball sports, where sponsor revenue tends to comprise a far smaller part of teams’ pie.
In a welcome development, SHR has gotten off to a better start on the track so far in 2024. But despite that, industry executives across the sport have identified SHR as one of the teams, if not the team, most likely to sell a charter or multiple charters before 2025. It could not be confirmed whether SHR has already started exploring the possibility of selling charters, but the possibility of the team doing so has become a hot topic in the garage in recent weeks, according to more than half a dozen industry executives familiar with the matter. SHR declined comment.
The rumors that SHR could sell a charter date back to last season, when the team’s struggles on and off the track were multiplying. In fact, after the team won the Xfinity Series championship at Phoenix Raceway in November, a reporter from The Athletic asked Stewart about the possibility of selling a charter in his post-race press conference. At the time, Stewart responded, “Why are we talking about this on Saturday night when this guy just won a championship?”
The most recent charter to trade was the one that Spire Motorsports bought from the now-defunct Live Fast Motorsports for slightly under $40M last year. As has been the case in recent years, any charter sale would be closely scrutinized for the industry for signs as to whether charter prices are growing, plateauing or declining. The charters have increased 11-fold in value just in recent years, but there remains an intense debate in the industry about their value, with some bullish and others bearish on the possibility that prices will continue to spike. Charters guarantee starting spots and predictable revenue streams for teams in exchange for a commitment by the team to compete in all of NASCAR’s 36 points races annually.
However, teams are currently embroiled in negotiations with NASCAR over a new governing agreement that would start next year, including whether and how long charters will be extended. Given that the charter system is technically set to expire after this year without a renewal currently locked in, investors outside of NASCAR are unlikely to buy a charter at the moment, industry executives said.
Only teams inside the sport who are confident that the system will continue in some form would be likely to buy one at this time, but it’s possible that even they will wait for a resolution with NASCAR before any further charter transactions take place.
Teams that are thought to be interested in possible expansion include Trackhouse Racing, 23XI Racing and Legacy Motor Club.Dale Earnhardt Jr.’s Xfinity Series team, JR Motorsports, has also been exploring the idea of buying a charter in recent years as it weighs joining NASCAR’s premier series.
Given that it has been seen as one of the most dominant teams in NASCAR, the possibility of SHR downsizing would have been surprising just a handful of years ago. But in the sponsorship-reliant world of motorsports, a lot can change with just a handful of departures by corporate partners.
