NASCAR Insider Explains the Hidden July 1st Rule That Quietly Makes or Breaks Cup Series Careers

“I won’t sit here and tell you that it doesn’t really matter. It’s definitely a distraction, but I’m trying to be as smart as possible and to put all this stuff on the side and to just do my thing on the track.” These ominous words came from Daniel Suárez ahead of NASCAR’s Mexico City debut. It reflected that he already knew the spiraling nature of his career at Trackhouse Racing. According to a NASCAR insider, it also concealed a crucial part of NASCAR’s contract system.

Daniel Suárez became the first domino in the annual “Silly Season” shift of personnel. A few days ago, he reached a “mutual” decision with Trackhouse to part ways after five long years in the Cup Series. But it didn’t take long to understand that the breakup was anything but mutual.

To get you familiar, Suarez’s average finish was 17.86 in 2024. However, this season the Mexico-born driver sits 29th on the standings with an unsatisfactory solo Top-5 finish (a P2 finish at Las Vegas), three Top-10s (P9 at Talladega, P10 at Texas), five DNFs, and an average start and finish of 24.222 and 21.389, respectively. But even if the numbers don’t induce confidence, why the sudden mid-season announcement? Couldn’t Justin Marks have waited till the silly season to actually arrive? A NASCAR insider explained why.

Parker Kligerman, who retired from full-time Xfinity racing last year, appeared on ‘The Money Lap’ podcast. “If you’ve ever signed a one plus one contract…usually, the period in which the option ends is somewhere around July 1st. Today is July 1st, that he put [the annoucement] out.”

“The point being, the timing is not unusual…halfway through the season. This is where everyone gets excited, this is where I’ve gone down the path talking about, like, the Netflix show they did, where they just completely missed the most compelling story is that, like, 50% of your field, probably give or take, it’s on one plus one contracts, which means they basically have six months to prove themselves to get resigned or less than that, as the season usually starts in February.”

“So, you know, you’ve got basically five months to prove yourself to get re-signed for next year. And we talk about May, that’s only a couple of months in the season. And it does because you’re rumbling towards July 1st, which is normally the time period of which the option ends.” Unfortunately, Daniel Suárez failed to accomplish what he had to in the limited time period, while his teammates maintained consistency. On one hand was Ross Chastain—currently 8th in the standings with an iconic Coca-Cola 600 victory, three Top-5s and 8 Top-10s. And then there’s Shane Van Gisbergen who, despite a 32nd place standing, won the Viva Mexico 250 race.

What is more, Daniel Suárez is making way for the future. That involves both his and a young gun’s prospects.

Why the rift makes more sense

Well, Daniel Suárez has spent five long seasons at Trackhouse Racing. He fetched two wins for the team; one at Sonoma (2022) and then in Atlanta (2024). After that, it has been a steady slide for the Mexican speedster. Presently, Connor Zilisch is a developmental driver for Trackhouse, on loan to JR Motorsports in Xfinity. And the way the 19-year-old is dazzling every weekend, a Cup Series upgrade in 2026 seems mandatory as per many. Zilisch won his debut Xfinity race at Watkins Glen in 2024 and he already owns two victories in his first full-time season. Meanwhile, Daniel Suárez dazzled Dale Jr after fetching a JRM victory at Mexico City, during the Chilango 150 race this year. Hence, former NASCAR crew chief and race analyst Steve Letarte justified the rift.

He said that Trackhouse had to part ways with Daniel at this time: “I think this was a business decision. Why now? I actually applaud the parties involved for a couple of reasons. Trackhouse has to move forward with their plan. I think we can all assume what it is. They have a bunch of drivers in the pipeline. One being Connor Zilisch… If something was going to happen, Daniel has to go out and find a ride.” He added, “I think this is the way to do it because I think this is the only way this 99 has success to finish this year off. If this happens, in the shadows and in the whispers and doesn’t become official, how does Daniel move forward? How does Trackhouse move forward without the relationship becoming more sour?”

Clearly, Daniel Suárez’s departure did not happen suddenly. And neither did the other drivers’ untimely exits from their teams.