INDYCAR, in collaboration with its teams, strengthened the future of the sport this week with the creation of its first charter system, announced Monday.

INDYCAR’s new charter system generates immediate value for NTT INDYCAR SERIES team owners and their entries. This value will grow over time as the sport continues its upward trajectory.

This historic development showcases alignment across the paddock and a commitment to continued collaboration that will accelerate even more growth moving forward.

The charter system creates an open marketplace across a series that has been building momentum at an impressive pace. The charter itself provides real value for the entry, guaranteeing a spot on the starting grid at almost every race and offering access to the Leaders Circle program.

The following are five questions and answers about INDYCAR’s new charter system:

Question: How were charters distributed and how many are there?

Answer: Charters were extended to NTT INDYCAR SERIES team owners based on full-time entries over the previous two seasons, A maximum of three charters were awarded per team. Ten teams accepted charters for 25 entries beginning immediately. The agreement runs through 2031 with a mechanism to extend beyond that.

Question: What comes with a charter?

Answer: A chartered entry receives a guaranteed position on the starting grid at all NTT INDYCAR SERIES races other than the Indianapolis 500 presented by Gainbridge. A chartered entry also becomes eligible for the annual NTT INDYCAR SERIES Leaders Circle program.

Question: Can an INDYCAR charter be sold?

Answer: A team will have the right to sell a charter to an entity interested in joining the NTT INDYCAR SERIES. The sale price and agreement are independently established by the chartered team, but the sale must be approved by INDYCAR.

Question: Does the charter system protect the tradition of the fastest 33 car-and-driver combinations at the Indianapolis 500?

Answer: Yes. The tradition of the “500” grid comprised of the 33 fastest qualifiers remains important to INDYCAR, Indianapolis Motor Speedway and the fans. INDYCAR felt it was appropriate to uphold that tradition for the sport’s biggest race of the season.

Question: How many cars can be on the starting grid moving forward and does the charter system determine this?

Answer: The charter system does not determine the number of cars in INDYCAR’s future races. That will be determined annually by INDYCAR rule. Next year, the grid is expected to feature a maximum of 27 cars, excluding the Indy 500.