NASCAR and Its Race Teams Fight Over the Sport's Future

When a NASCAR team was purchased by Michael Jordan and his associate Curtis Polk in 2020, they expected short-term losses. Significant expenses included hiring drivers, mechanics, and a sales staff, as well as the high costs of running Next Generation cars and constructing a new building. However, they believed the investment would pay off as they predicted growth in television viewership, attendance, and sponsorship demand. They also anticipated an increase in the value of the sport’s broadcast rights. Despite their optimism, the team has struggled to make a return on their investment due to NASCAR’s unwillingness to share more revenue with the teams. The ongoing disagreement between the racing teams and NASCAR goes beyond financial matters and reflects differing visions for stock car racing. The teams want NASCAR to be more like a major sports league, while NASCAR aims to make the teams profitable and competitive on the racetracks. The issue of revenue sharing, along with the uncertainty surrounding charters and the expiration of the current broadcast rights deal, has affected the teams’ ability to invest and attract outside investors. Although the teams have the option to form their own race series, they prefer to reach a fair deal with NASCAR that provides them with a greater stake in the sport’s future. The introduction of Next Generation cars aimed to increase parity, but has not resulted in significant cost savings for the teams. Teams are required to purchase car parts from specific suppliers, face increased costs for tires, and deal with the limited durability of new parts. While NASCAR has made efforts to enhance the sport’s visibility through production centers and reality series, team owners and executives assert that permanent charters would help create a revenue stream and attract new investors or sponsorships to bridge the gap between ownership and the league.