Rick Hendrick has raised serious concerns regarding the current financial health of NASCAR teams, presenting a letter during ongoing trial proceedings that underlines the intensity of the Rick Hendrick charter deal dispute. With Hendrick Motorsports reporting a $20 million loss over five years despite championship success, tensions between teams and NASCAR leadership have reached a new high as negotiations over the charter system continue.
During Tuesday’s trial, an excerpt from Rick Hendrick’s letter to Jim France became a focal point. Even after winning two NASCAR Cup Series championships, Hendrick Motorsports found itself financially in the red, which prompted the veteran team owner to demand fundamental changes for the sustainability of the sport. Michael Jordan’s legal representative, Jefferey Kessler, echoed Hendrick’s concerns, describing the letter as an advance warning about the future of stock car racing under the present structure.
Teams Seek Larger Revenue Share Amid Financial Losses
An essential controversy in this dispute centers on revenue distribution. Teams initially requested $720 million per year, but the new deal offered $431 million annually, only a small $31 million increase from the previous arrangement. The vast majority of the $1.05 billion annual media rights deal gets funneled to NASCAR ownership and racetracks. Notably, NASCAR-controlled tracks host 16 of the 36 races, amplifying the governing body’s share of revenue.
While the teams argue for a larger portion, NASCAR commissioner Steve Phelps countered that honoring the teams’ proposals would jeopardize the business’s longevity. Phelps maintained that the existing share structure is necessary for NASCAR’s financial survival, which stands in stark contrast to the teams’ assertions that the model is already failing them.
Rick Hendrick’s direct words emphasized the gravity of the situation:
“Over the past five years, Hendrick Motorsports has won two NASCAR Cup Series championships — and lost $20 million. I’d be happy to show you audited financial statements. I love this sport, and my passion for it keeps me engaged, but there’s a clear business reality. Before we can possibly reach an agreement, NASCAR must acknowledge the current model is unsustainable for teams and cannot continue without substantive, fundamental change.”
— Rick Hendrick, Team Owner
Team Owners Argue for Respect and Viable Business Model
Hendrick’s frustration deepens with the perception that teams, despite their investments and role in NASCAR’s success, lack recognition and a fair stake. Over time, Hendrick Motorsports has generated immense value for sponsors, with some even supporting NASCAR itself. Nevertheless, Hendrick expressed that this contribution does not translate into respect from NASCAR’s leadership, as reflected in his further comments:
“The message I continue to hear from NASCAR is that the teams bring no value, our rights are worthless, and we don’t know how to run a viable business,” Rick Hendrick wrote,” To be made to feel that my family’s investments and sacrifices are not appreciated, valued or respected by NASCAR is disappointing, to put it mildly. To be asked to consider a lesser deal, as your most recent proposal suggests, is a slap in the face. I will not agree to it.”
— Rick Hendrick, Team Owner
The struggle is not limited to Hendrick alone. Richard Childress, another established owner, highlighted his own financial pressures, explaining that he had no choice but to accept the 2025 charter deal to protect his business. The trial also saw testimony from Jim France, although reports described his appearance as notably underwhelming.
Next Steps in NASCAR Charter Negotiations
With Rick Hendrick expected to take the stand in the coming days, the dispute has placed the entire model of NASCAR’s competitive landscape under scrutiny. The outcome of these negotiations and trial proceedings will determine whether teams can secure the sustainability and respect they say is essential.
The confrontation over the Rick Hendrick charter deal dispute could prompt significant shifts in NASCAR policy, potentially reshaping relationships between team owners, sponsors, and NASCAR itself as they seek an agreement that balances tradition and financial stability.
Rick Hendrick letter to Jim France said HMS did $1 billion in business with their sponsors in 2023: pic.twitter.com/n3v8EvoyOA
— Bob Pockrass (@bobpockrass) December 9, 2025
