Kyle Larson’s franchise model is poised to transform sprint car racing as it prepares for a full launch in 2026. Co-founded by Larson and Brad Sweet in 2023, High Limit Racing is introducing a new franchise system similar to NASCAR’s charter model, designed to give teams ownership stakes that appreciate based on performance. This change comes amid an ongoing antitrust lawsuit involving NASCAR and teams such as 23XI Racing, injecting uncertainty into the sport as teams debate the potential impact on competition and revenue sharing.
The franchise approach aims to reward consistent success by granting teams guaranteed seeded positions over two-year periods. Rico Abreu, speaking on Dale Earnhardt Jr.’s Dirty Mo Media podcast, described the initiative saying,
The vision that Kyle and Larson and Brad Sweet and Flo, you know, Mark Floreani, have created here is very appealing as a business owner to be a part of something like that.
This business-minded strategy could deliver stability but raises concerns that smaller teams may face new barriers, echoing criticisms of NASCAR’s model.
Kyle Larson has articulated the goal of building long-term sustainability in dirt racing through this franchise framework. He emphasized,
We want to create something where teams can build equity and value in their organizations,
making a clear connection to NASCAR’s charters while striving to avoid similar flaws by tying franchise value strictly to on-track results. For Abreu, the model was a decisive factor in joining Tony Stewart Racing full-time, stating,
Ultimately, that was, you know, one of my major decisions to compete with high-limit full-time.
High Limit Racing’s growth has been swift since its 2023 inception, evolving from midweek contests into a national tour with significant prize money, backed by co-owner FloSports. However, launching a franchise system amid the brewing NASCAR charter lawsuit—filed in October 2024 over alleged anticompetitive behavior—makes Larson’s move both daring and contentious. While this could professionalize sprint racing in new ways, it risks dividing veteran teams and emerging competitors.
Tony Stewart’s team plays a key role by leasing their franchise from Abreu, with High Limit’s approval. Abreu highlighted the commercial potential, saying,
To be rewarded with a franchise and possibly the number one franchise next year if we can win the championship is going to be a huge step for me on the business side.
This development may attract more investment but carries parallels to NASCAR’s controversies, where millions of dollars are tied to charter values, sparking legal disputes.
Abreu further noted the performance-based nature of the system:
Over time, that’s how you continue to perform, right? It’s going to be performance-based on where you’re seeded over a two-year period.
The franchise model aims to professionalize sprint racing by enhancing financial assurance but invites scrutiny over competitive fairness. As Abreu joins Tony Stewart Racing, the transition marks a turning point for the team and the sport alike.
Donny Schatz Ends a Landmark Era with Tony Stewart Racing
Donny Schatz’s exit from Tony Stewart Racing after an 18-year tenure concludes one of the most dominant stretches in World of Outlaws history. Schatz, a ten-time series champion and holder of 315 wins, announced in August 2025 that he would part ways to seek new challenges. This follows Tony Stewart Racing’s shift in priorities toward the High Limit Racing schedule, requiring changes to its roster and operations.
Schatz’s arrival at TSR in 2008 helped establish the team as a powerhouse, delivering championships from 2014 through 2018. Tony Stewart praised Schatz’s legacy, stating,
We’ve had a driver-team owner relationship that has gone beyond that partnership; he’s become part of my extended family through the years, and I have the utmost respect for him and what his career represents—a generational driving talent.
Schatz’s departure signals a strategic pivot as TSR embraces the new franchise-driven model in sprint racing, reflecting broader trends of innovation and shifting team dynamics.
Following his departure from TSR, Schatz plans to compete in the next seven World of Outlaws races driving Big Game Motorsports’ No. 15 car. The Big Game team expressed enthusiasm for his addition, saying,
We’re excited to have Donny Schatz run a second team car during the next seven World of Outlaws races.
This phase not only redefines Schatz’s career path but also demonstrates how driver-team alliances continue to evolve amid sprint car racing’s changing landscape.
The Growing Influence of Larson and Stewart on Sprint Racing’s Future
Kyle Larson and Tony Stewart’s involvement in High Limit Racing is increasingly shaping the future of sprint car competition. Stewart’s multifaceted background as a driver who once completed both the Indy 500 and Coke 600 in a single day reflects his willingness to pursue ambitious ventures. His ownership of Tony Stewart Racing since 2000 spans multiple disciplines, including World of Outlaws sprint car events and NHRA drag racing, illustrating a commitment to diverse motorsports.
Larson, a 2021 NASCAR Cup Series champion known for his prowess on both dirt and asphalt, has brought fresh perspectives to sprint racing’s business and competitive realms. His collaboration with Sweet and others in launching the franchise model seeks to create a more predictable and valuable ecosystem for teams to thrive. Yet, this professionalization invites anxious scrutiny, given the legal battles and controversies surrounding NASCAR’s charter system, which the franchise model echoes.
The shifts happening in sprint car racing reflect broader tensions between preserving open competition and introducing financial security mechanisms. With Larson steering the franchise initiative and Stewart supporting it through his team’s involvement, the sport faces a pivotal moment that could either solidify financial health or deepen competitive divides.
What’s Next for Sprint Car Racing Amid These Changes?
As High Limit Racing’s franchise model prepares to launch next year, the sprint car community watches closely to see how this new structure affects the sport’s balance. Larson’s approach promises increased stability and investment prospects but raises questions about the accessibility for smaller teams and newcomers. Meanwhile, Tony Stewart Racing’s roster adjustments, marked by Donny Schatz’s departure, underline the reality of evolving team priorities in light of this franchise-based system.
The unfolding scenario holds significant implications for sprint racing’s identity and growth. If successful, this model could usher in a more business-savvy era, attracting sponsors and elevating the sport’s profile nationwide. Conversely, it risks controversies akin to those roiling NASCAR, including potential backlash over fairness and equity. Both insiders and fans will soon witness how Larson’s franchise model reshapes sprint racing’s future trajectory, setting the stage for new rivalries and opportunities.
